The family of former Central Bank of Kenya governor Philip Ndegwa is set to spend Sh8.5 billion to reclaim a 24.1 per cent stake in ICEA Lion Insurance Holdings, restoring its full ownership of one of East Africa’s major insurance groups.

First Chartered Securities, the Ndegwa family’s investment vehicle, has secured approval from the Competition Authority of Kenya to acquire the minority interest from Eastern Africa Holdings, an investment vehicle associated with LeapFrog Investments and US-based insurer Prudential Financial.

First Chartered already controls the remaining 75.9 per cent of ICEA Lion, meaning the transaction will give the family complete ownership of the insurance group.

ICEA Lion operates across the insurance and financial services sectors, offering life and general insurance, alongside asset and fund management services. Its operations extend to Kenya, Uganda and Tanzania.

The stake being acquired was held through LeapFrog Strategic Africa Investments, a $350 million fund established by LeapFrog and Prudential in 2016 to invest in African insurance businesses.

Prudential disclosed earlier this year that it intended to exit the investment, although neither it nor LeapFrog has publicly revealed the consideration for the latest transaction.

The buyback marks a reversal of a deal struck five years ago when the Ndegwa family sold the same 24.1 per cent interest to LeapFrog for Sh2.4 billion. The 2020 transaction placed the value of ICEA Lion at about Sh10 billion.

The proposed Sh8.5 billion acquisition now puts the implied value of the entire group at roughly Sh35 billion. This represents more than a threefold increase in the company’s valuation since LeapFrog acquired its stake.

James Ndegwa remains chairman of ICEA Lion, while his brother Andrew Ndegwa is also a board member.

The Ndegwa family’s involvement in the business dates back decades. Philip Ndegwa, who served as CBK governor, founded First Chartered Securities in 1974 alongside 20 other shareholders.

The investment firm has since expanded under the leadership of his sons James and Andrew into a diversified holding company with interests spanning banking, manufacturing, property, logistics and insurance.

The family has also actively restructured its business interests through acquisitions, mergers and disposals. ICEA Lion itself emerged from the combination of ICEA and Lion of Kenya Insurance.

The family is among the largest shareholders of NCBA, with its investment held mainly through First Chartered Securities.

Their banking interests date back to the former NIC Bank, where the family was a significant shareholder.

NIC later merged with Commercial Bank of Africa (CBA) in 2019 to create NCBA, bringing together two institutions in which the Ndegwa and Kenyatta families are major investors.