CIC Insurance Group is moving away from its traditional “land-heavy” balance sheet to embrace a more liquid financial model.
This transformation is currently centered on the disposal of non-core real estate assets in areas such as Kiambu and Kajiado. CIC is selling 200 acres near Tatu City, Kiambu and 495 acres in Kajiado.
The Nairobi-based underwriter is now focused on subdividing 200 acres of prime land located near the burgeoning Tatu City. This project, branded as Ushirika Gardens, represents a sophisticated pivot from the company’s initial attempts to sell the land as one block.
Management recognized that the market for a single, multi-billion shilling land transaction had become increasingly illiquid and difficult to navigate.
By contrast, the demand for smaller, serviced residential plots in the Nairobi metropolitan area has remained exceptionally resilient and high.
“The two transactions will inject Sh1.8 billion into the balance sheet of CIC Insurance Group further strengthening the liquidity and overall performance of the group,” the company said in a statement.
Initially, the insurer had hoped to find a single developer or institutional buyer to take over the entire 200-acre site. This would have provided a massive, one-time cash injection but proved difficult to execute due to the sheer scale of the investment.
In a recent press briefing, Group CEO Patrick Nyaga detailed the shift in tactics and the expected financial benefits. He noted that the new approach would “raise more money than the initial plan to dispose of the land in one transaction.”
The subdivision model allows the company to tap into a wider pool of retail buyers and corporate housing cooperatives. Each quarter-acre plot is being marketed as a “forever-after home” site, emphasizing lifestyle and community rather than just raw land value.
Reflecting on the intended customer base and the logistics of the rollout, Nyaga stated: “We will now subdivide the land into plots and sell them to individuals and corporate buyers.”
The financial impact of this strategy is being felt in the group’s latest audited results for the 2024 financial year. The company reported a profit after tax of Sh2.85 billion, marking a nearly 100 percent increase from the previous year.
Total assets have also seen a healthy expansion, growing by 23 percent to reach Sh61.9 billion by the end of 2024. This growth trajectory has continued into early 2026, despite a macroeconomic environment characterized by sticky inflation and high interest rates.
Proceeds from the Ushirika Gardens sales are primarily earmarked for debt reduction and the funding of digital transformation initiatives. Reducing the interest burden from bank borrowings is seen as a critical step in improving the group’s net insurance result.
The insurer has also made significant strides in its regional subsidiaries, which now contribute roughly 16% to the total profit. Operations in South Sudan and Malawi have shown particularly strong growth, diversifying the group’s revenue streams across the continent.
However, the general insurance segment continues to face pressure from rising claims costs and a competitive pricing environment. In response, the group is leaning heavily on its market-leading asset management arm, which manages over Sh152 billion in funds.
The asset management business has consistently provided a stable floor for the group’s earnings even when underwriting margins are thin. This synergy between insurance and investment is the cornerstone of CIC’s resilience in the 2026 fiscal landscape.
The Ushirika Gardens project itself incorporates green initiatives, such as solar-powered water pumps and landscaped recreational spaces. These amenities are designed to attract the modern, eco-conscious buyer while adding a premium to the plot prices.
Market analysts suggest that CIC’s land disposal strategy could serve as a model for other regional insurers with high property exposure. As capital requirements tighten, the ability to quickly monetize non-core assets becomes a significant competitive advantage in the industry.
Shareholders have largely welcomed the move, especially following the board’s recommendation of a bonus share issue in 2025. This move signals management’s confidence in the group’s long-term capital adequacy and its ability to generate sustainable, cash-backed profits.
– By John Otini
