The transaction aims to drive business growth and expansion by enhancing operational efficiencies and executing a strategy led by the new shareholders.
In a statement, CAK confirmed that its approval was based on the finding that the transaction is unlikely to negatively impact competition in the insurance services market or raise public interest concerns. One of the criteria for assessing a merger’s impact on competition is the post-merger market share of the entities involved. In this case, the merged entity’s market share will be just 0.05%.
Ondoba is a newly incorporated holding company focused on investments in the financial sector. Kenyoro and Equico Thirteen, both limited liability companies based in Kenya, also operate in the financial services sector, including insurance.
CAK highlighted that parties involved in transactions where the combined turnover or assets exceed KES 1 billion ($7.7 million) are required to seek approval from the Authority before proceeding with a merger. The transaction between Ondoba, Kenyoro, Equico, and Monarch met this threshold, necessitating mandatory notification and a full analysis under the Competition (General) Rules, 2019.
Monarch Insurance, based in Kenya, offers a range of composite insurance products, including general insurance, motor solutions, and life insurance.
