Insurance solutions provider CIC Group PLC has raised KES 1.8 billion from the sale of two parcels of land in Kiambu and Kajiado counties as part of efforts to optimize its balance sheet and strengthen its financial position.

The NSE-listed firm sold 100 acres out of 495 acres in Kajiado and 50 acres out of 200 acres in Kiambu, with the capital injection expected to enhance the Group’s liquidity Position.

The proceeds are aimed at enhancing the insurer's capital position, as the Insurance Regulatory Authority (IRA) heavily discounts land assets, preferring liquid assets for claim settlements.

The underwriter and its subsidiaries have had a good portfolio of investments in land and real estate. This notably includes prime 200 acres neighbouring Tatu city and 495 acres in Kajiado.

It has been working to unlock value from land holdings that were not generating income, specifically by subdividing large, hard-to-sell parcels into smaller, more marketable plots.

“The two transactions will inject KES 1.8 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.

CIC Group plans to use the proceeds from the land sales to partially repay its debt. In 2019, the insurer secured a loan from Co-operative Bank of Kenya to facilitate the redemption of its KES 5 billion corporate bond that matured in October of the same year.

“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 Group CEO Patrick Nyaga.

CIC Group H1 2025 Performance

In the six months ended June 30, 2025, the insurer recorded a 10.1% decline in net income to KES 638.5 million, despite an 8.4% growth in insurance revenue to KES 13.9 billion from KES 12.8 billion in the corresponding period in 2024. The insurance service result plunged by 87.7% to KES 128.2 million, while net investment result surged 122% to KES 1.5 billion.

CIC Asset Management (CICAM), a subsidiary of the Group, emerged as a key earnings driver, contributing 53.1% (KES 338.9 million) to total profit after tax. The Group’s total assets stood at KES 70.1 billion, up 13.2%.