CIC Insurance Group has realised Sh1.8 billion from the disposal of 150 acres of land in Kiambu and Kajiado counties, a move set to shore up its cash position and crystallise value from its property holdings.
The Nairobi Securities Exchange-listed insurer confirmed it offloaded 50 acres near Tatu City in Kiambu and a further 100 acres in Kajiado. The transactions will add Sh1.8 billion to the group’s balance sheet, strengthening liquidity and supporting overall performance, with the financial impact to be reflected in the year ending December 2026.
CIC had built up an extensive land bank over the years, positioning itself for future commercial and residential developments while riding the steady appreciation of land around Nairobi. Before the latest disposals, its investment property portfolio comprised 200 acres in Kiambu and 495 acres in Kajiado.
The sale comes as the insurer seeks to rein in borrowings tied to undeveloped land that was not generating income. In 2019, CIC secured a Sh4.5 billion loan from Co-operative Bank of Kenya to refinance a Sh5 billion corporate bond. By the close of 2024, that facility had grown to Sh5.2 billion after interest accruals and restructuring arrangements designed to give the insurer breathing room.
Co-op Bank holds an effective 24.82 percent stake in CIC through its 33.41 percent shareholding in Co-operative Insurance Society Limited, the insurer’s largest shareholder. The Kiambu parcel had been pledged as collateral for the loan, and proceeds from the partial disposal are earmarked for debt reduction, a step expected to ease finance costs and tidy up the balance sheet.
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Chief executive Patrick Nyaga said the funds will go towards trimming debt, significantly lowering financing expenses and improving the capital structure. He noted that while the firm had previously sold smaller portions of land, securing a bulk buyer marks a significant breakthrough.
The Insurance Regulatory Authority applies a 30 percent discount on land holdings, favouring liquid assets to ensure insurers can promptly settle claims. CIC had also been cautioned by South Africa’s GCR Ratings over its heavy exposure to real estate. As at June 2025, the insurer carried investment properties valued at Sh3.7 billion, suggesting potential upside relative to the latest transaction proceeds.
For the half year to June 2025, CIC posted a net profit of Sh638.4 million, down from Sh709.9 million the previous year, as softer underwriting performance offset robust growth in investment income.
