CIC Insurance Group has raised Sh1.8 billion from the sale of 150 acres in Kiambu and Kajiado Counties, boosting its liquidity and unlocking gains from its portfolio of investment properties.
The Nairobi Securities Exchange-listed firm said it sold 50 acres of land adjacent to Tatu City in Kiambu and 100 acres in Kajiado.
“The two transactions will inject Sh1.8 billion to the balance sheet of CIC Insurance Group Plc, further strengthening the liquidity and overall performance of the Group,” the insurer said in a statement.
The impact of the land disposals is expected to be captured in the current financial year ending December 2026.
CIC had invested heavily to establish a major land bank, preparing to develop commercial and residential units even as it benefited from the long-term appreciation of land in areas close to the capital, Nairobi.
Prior to the latest land sales, its portfolio of investment properties included 200 acres in Kiambu and 495 acres in Kajiado.
The decision to sell the assets came after the insurer’s borrowings increased, while the land parcels were not generating cash as they remained undeveloped.
CIC, for instance, took a Sh4.5 billion loan from its significant shareholder, Co-operative Bank of Kenya, to help repay its Sh5 billion corporate bond on October 2, 2019.
The loan from Co-op Bank had grown to Sh5.2 billion at the end of 2024, reflecting the impact of the accumulation of interest and restructuring of the debt as the lender accommodated the insurer to help it get back on its feet.
The bank has an effective stake of 24.82 percent in CIC held indirectly through its 33.41 percent interest in the insurer’s top shareholder, Co-operative Insurance Society Limited.
The Kiambu land was used to secure the loan from Co-op Bank, with proceeds from the partial sale of the asset expected to be deployed in reducing the debt in a move that will also cut finance costs.
“We will use the money to reduce the debt, which means our finance costs will come down significantly and the balance sheet structure will be improved,” said CIC’s chief executive officer Patrick Nyaga.
“We have been selling quarter blocks, so getting one buyer and making a bulk payment to the loan is a big breakthrough,” he added.
Land is discounted at 30 percent by the Insurance Regulatory Authority (IRA), which prefers insurers to hold their capital in liquid assets in order to have cash for settlement of claims.
CIC had been flagged for having too much capital concentration in real estate by the South African rating agency GCR Rating in the latest rating of the company.
The insurer carried its investment properties at Sh3.7 billion at the end of June 2025, indicating that it could obtain a higher value based on the proceeds from the partial sale of the land parcels.
CIC posted a net profit of Sh638.4 million in the half year ended June 2025, down from Sh709.9 million a year earlier as weaker insurance earnings dragged strong growth in investment income.
