Three companies have gotten the approval of Competition Authority of Kenya (CAK) to buy 51pc stake in Monarch Insurance.
The approval which has been granted unconditionally by the competition watchdog will see the consortium which includes Ondoba Limited, Kenyoro Limited and Equico Thirteen Limited become majority owners of the insurer.
CAK disclosure indicates Ondoba Limited is a new holding company incorporated for the sole purpose of investing in the financial sector while Kenyoro Limited and Equico Thirteen Limited which are both incorporated in Kenya are investors in the financial sector.
“This approval has been granted on the finding that the transaction is unlikely to negatively impact competition in the market of provision of insurance services, nor elicit negative public interest concerns. These are the key considerations during merger analysis,” said CAK in a statement.
The new transaction is now expected to enhance Monarch Insurance position in the insurance sector through growth and expansion by enhanced operational efficiencies.
“For completeness, the Authority previously considered and unconditionally approved a transaction involving the target in July 2021. The transaction involved the acquisition of 51pc of the ordinary shares in Monarch by Holmarcom Africa Financial Services,” said CAK.
Monarch Insurance offers genera insurance products which include travel insurance, personal accident insurance, motor vehicle insurance, home insurance, medical insurance, property
insurance, liability plans, and marine cover.
CAK has assured employees of the insurer of job security as a result of the transaction since the proposed transaction entails
investment in Monarch without altering its management functions.
