BK Group Plc has completed the sale of its entire stake in BK General Insurance Ltd (BKGI) to the Rwanda Social Security Board (RSSB) for Rwf31.7 billion, making the pension fund the insurer’s sole shareholder.
BK Group announced the completion of the transaction on Monday in a notice to the Rwanda Stock Exchange, the Nairobi Securities Exchange and capital markets regulators in Rwanda and Kenya.
The deal involved three million fully paid ordinary shares in BKGI. The Rwf31.7 billion consideration translates to Rwf10,567 per share, compared with the shares’ nominal value of Rwf1,000. BK Group said the sale price was based on an independent valuation.
The acquisition forms part of RSSB’s plan to consolidate its insurance investments and build a stronger insurance group serving individuals and businesses in Rwanda and regional markets.
Under the planned structure, BK General Insurance and SONARWA General Insurance Ltd will form the group’s general insurance arm, while SONARWA Life Assurance will continue to operate as its life insurance business.
RSSB said the consolidation would increase financial capacity, expertise and operational scale, allowing the businesses to expand insurance products, improve customer service and respond to changing market needs.
“This acquisition of the entire stake is an important step toward our vision of becoming a strong insurance group capable of competing in the insurance market,” RSSB Chief Exective Officer Regis Rugemanshuro said.
For BK Group, the sale is part of a broader strategy to focus on two core businesses — commercial banking through Bank of Kigali Plc and investment banking through BK Capital Ltd.
BK Group Chief Executive Officer Dr. Uzziel Ndagijimana said the strategy was aimed at concentrating resources on the group’s core businesses, adding that Bank of Kigali accounts for nearly 98% of BK Group’s business.
The group also completed the integration of BK TechHouse Ltd into Bank of Kigali. Its assets, technology platforms and relevant contracts were transferred to the bank, while its technology functions will continue under the bank’s Digital division.
BK Group said the restructuring, including the insurance sale and BK TechHouse integration, complied with legal requirements and received approval from relevant authorities, including the National Bank of Rwanda.
The changes are intended to improve efficiency and allow BK Group to focus capital and management resources on its core banking and investment banking businesses, while RSSB expands its presence in the insurance sector.
