The Competition Authority of Kenya (CAK) has approved the proposed acquisition of 65% of Takaful Insurance of Africa Limited by Tamini Insurance S.A.
In a notice on April 28, 2025, CAK stated that the transaction between the companies was classified as a merger under Sections 2 and 41 of the Competition Act, Cap 504 of the Laws of Kenya, as it involves one company gaining control over another.
“The Authority approved the proposed acquisition of 65% of the issued share capital in Takaful Insurance of Africa Limited by Tamini Insurance S.A. unconditionally,” the statement read.
This approval comes after the authority conducted an extensive analysis of the proposed transaction, and it was determined that the merger will not negatively affect competition in Kenya’s general insurance market or raise any public interest concerns.
CAK Analysis of Djibouti’s Tamini Acquisition
The CAK determined that the relevant product market for this merger is the provision of general insurance services. General insurance covers a wide range of products, including health insurance, motor vehicle insurance, fire insurance, and more.
Thus, this market was considered relevant as it directly relates to the operations of Takaful Insurance of Africa Limited.
Moreover, regarding the geographical market, the CAK assessed that the relevant area of operations for the companies involved is national, given that Takaful Insurance provides its services across several counties in Kenya.
The transaction was classified as a merger under Sections 2 and 41 of the Competition Act, Cap 504 of the Laws of Kenya, as it involves one company gaining control over another.
Thus, Kenyan law requires that any merger or acquisition involving parties with combined turnovers or assets exceeding KES 1 billion must seek approval from the CAK, which both companies did.
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Impact on Competition
After a thorough analysis, the CAK concluded that the proposed acquisition would not result in any significant changes in market share or concentration.
Tamini Insurance S.A. does not operate in the general insurance market within Kenya, so the merger will not affect the competitive dynamics in this sector.
The CAK noted that the merged entity will continue to face competition from other major players, who collectively control over 99% of the market share in the general insurance sector. As a result, the CAK believes that the transaction is unlikely to raise any substantial competition concerns.
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About the Entities Involved
Tamini Insurance S.A. is a private limited liability company based in Djibouti, focusing on investment banking and microfinance in Kenya.
Though the company is a significant player in the financial services sector, it does not operate within the general insurance market in Kenya.
Tamini Insurance S.A., which operates in investment banking and microfinance in Kenya, will gain significant control over Takaful Insurance of Africa Limited, a company founded in 2008 and licensed in 2011.
Takaful Insurance of Africa Limited, on the other hand, is a Kenyan company specialising in general insurance services.
The acquisition involves Tamini Insurance S.A. purchasing 65% of Takaful Insurance’s share capital, thus gaining significant control over the target company.
Takaful offers a range of ethical insurance products based on Islamic principles, including health, motor, and property coverage.
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