Sanlam Allianz Africa Proprietary Limited (SAZ) has been instructed to divest at least 30,946,202 ordinary shares, representing roughly 4.81 per cent of the enlarged share capital, by September 28, 2027 following the Insurance Regulatory Authority’s (IRA) approval of the deferred-share allotment.

The IRA’s decision on September 28, 2026 raised SAZ’s holding in Sanlam Allianz Holdings (Kenya) PLC to 71.47 per cent, up from 66.19 per cent, thereby breaching the two-thirds foreign-ownership ceiling set out in the Insurance Act.

To bring its stake back within the limit, SAZ will sell the excess shares, which are currently valued at KSh308.84 million based on the Nairobi Securities Exchange opening price of KSh9.98 per share.

The deferred issue consists of 100,579,535 paid-up shares, of which 8,265,499 were taken up by Hubris Holdings Limited, a wholly owned SAZ subsidiary, and 92,314,036 were subscribed by SAZ under an underwriting agreement.

These shares were held back after the 2025 rights issue that offered 500 million new ordinary shares at KSh5 each, a move that aimed to raise KSh2.5 billion to repay a Stanbic Bank loan and reduce debt.

The rights issue expanded the issued share count by 18.5 per cent to 644 million, and the Capital Markets Authority issued a “No Objection” for the allotment, pending credit to Central Depository and Settlement Corporation accounts.

The sell-down must be to individuals or entities that qualify under section 22(b) of the Insurance Act, meaning East African Community citizens, partnerships of such citizens, or companies wholly owned by them.

Completion of the disposal will cap SAZ’s holding at the regulatory ceiling of 66.67 per cent, equivalent to 429,333,333 shares.

The compulsory sale has diluted billionaire Baloobhai Patel’s stake through Aksaya Investment Holdings to 21.04 per cent from 24.93 per cent, while the combined holding of other investors fell to 7.49 per cent from 8.87 per cent.

The company’s board has warned investors to exercise caution when trading the shares until the mandated sell-down is finalised.