The planned takeover of Egypt’s Delta Insurance by Morocco’s Wafa Assurance has drawn scrutiny from the COMESA Competition Commission, as it raises questions not only about competition in North Africa but also about ripple effects in East Africa’s insurance market, particularly Kenya.
- •Wafa, listed in Casablanca, has applied to acquire between 51% and 100% of Delta Insurance, which specializes in non-life policies, while its subsidiary Delta Life sells life products in Egypt.
- •If cleared, the deal would merge Wafa’s existing life business with Delta’s operations, cementing its position in Egypt and extending its reach into the non-life segment.
- •Though the transaction is focused on Cairo, the implications for Nairobi are significant, especially if Wafa deepens its regional presence.
“This deal signals Wafa’s appetite for scale in Africa,” said a Nairobi-based insurance executive who requested anonymity to speak freely. “Kenya is likely on their radar as a hub market. If they bring in more capital and competitive products, local underwriters will face fresh pressure on pricing and innovation.”
Kenya is already one of Africa’s most dynamic but challenging insurance markets. The Insurance Regulatory Authority (IRA) has been tightening capital and compliance requirements, a move that analysts say will accelerate consolidation and create room for well-capitalized foreign entrants.
Kenya’s insurance sector, ranked third in sub-Saharan Africa after South Africa and Nigeria, has long been viewed as a market of untapped potential. Penetration remains at just 2.3% of GDP, far below the global average of 7%, with growth constrained by high claims ratios and slow premium expansion. Yet foreign insurers such as Allianz and Prudential have already made inroads, underscoring the market’s strategic allure.
Gauri Shah, a partner leading PwC’s consulting and risk services, said Kenya’s industry is ripe for transformation. “Kenya’s insurance sector is at a pivotal stage. Global regulatory trends show that tougher oversight and consolidation can actually improve the sector’s prospects and attract new investment. After years of global players expanding in Asia, their sights are now firmly set on Africa—and Kenya is a prime candidate,” she noted.
“The sector has not kept pace with banking in terms of growth, but regulatory change, coupled with innovation and consolidation, can make it more attractive. Investors want to see discipline, strong governance, and scalable opportunities, and Kenya is moving in that direction,” she added.
COMESA’s review of the Wafa-Delta deal will determine whether the transaction could substantially lessen competition or harm public interest.
The Egyptian Competition Authority has already approved the proposed acquisition, while the Financial Regulatory Authority has approved the publishing of the mandatory tender offer.
