Liberty Enters Kenyan Market

December 7 - Liberty Life Holdings is seeking to buy a majority share in CFC Life Holdings, one of East Africa's leading life insurance groups.

The Standard Bank subsidiary will control 57 percent of the life insurance company that is considered one of the top ten groups that represent the health and short term insurance markets in East Africa, including Kenya, Tanzania and Uganda.

"East Africa as a region is highly important to us," said Rex Tomlinson, Deputy Chief Executive at Liberty Holdings. "Life products penetration is very low in Kenya, which is as populous as South Africa with about 40 million people."

"Life insurance is 1 percent of gross domestic product, granted disposable income is lower but there is an emerging middle class and it has been stable for a decade."

Plans to complete the transaction will be completed by early next year, after Cfc Life becomes listed on the Nairobi Stock Exchange.

The deal is also subject to regulatory approval.

CfC is considered the fourth largest life insurer in Kenya and the fifth largest in health insurance. It also holds a good place in the short term insurance sphere.

Standard Bank has expanded into East Africa, and operates 70 branches of its bank in Uganda.

Standard Bank merged with CfC Life to form Stanbic Holdings, of which it owns 60%.

"So this is not something we have been doing over the past six months," remarked Tomlinson. "We know the people well, it fits with our strategy into Africa and the businesses are the same. We will get a good return but it is small if you look at the whole Liberty Group."