AJ Capital and Investment LLC (AJCI), a Dubai-based private equity firm, inked a deal Thursday for a majority stake in Kenyan start-up micro-insurer, Insurance For All (IFA) Ltd, for undisclosed value.
The investment arm of Al Jallaf family, said to be one of the most influential business families in Dubai, said it will inject undisclosed cash into supporting IFA’s expansion drive and marketing initiatives after purchasing a 51 percent shareholding.
The global value of deep-pocketed AJCI, which announced its entry in Kenya in February through a Sh20 million sponsorship for renovation of a dormitory at the Starehe Boys Centre, is estimated at $8 billion (Sh830.08 billion).
These are spread in manufacturing, shipping, real estate, hospitality, fashion and modelling, interior design, solar power generation, among other sectors in Middle East, Europe and America.
IFA, established 2014, targets low-cadre workers in the informal (jua kali) sector through associations and small-sized firms with high concentrations of casual labourers. The micro-insurer, which said it has about 1,600 policyholders, operates largely in Nairobi’s Eastlands where it sells out- and in-patient medical covers at an annual premium of Sh6,750, paid in installments. “This was an attractive investment proposition to us given the strong growth prospects for affordable insurance medical insurance in Kenya,” AJCI chief executive Danny Ochieng said.
“This is in line with our unique investment model which goes financial value to contribute to social welfare. We are not under pressure to generate profit but we ensure we don’t lose our money.”
“We are going to do very unique things like paying claims within 24 hours because we want to prove that insurance actually works. Only by doing that can we change the mindset of Kenyans and get them to start adapting to that culture of taking medical covers,” IFA chief executive John Paul Otieno said.