This archive report was first published on 9 July 2019.
On July 9, 2019, CIC Insurance announced plans to sell 712 acres of freehold land in Kajiado and Kiambu counties, in transactions expected to earn the firm upwards of Sh10 billion.
The disposals come as the Nairobi Securities Exchange-listed firm prepares to redeem its Sh5 billion bond on October 2, 2019.
According to CIC Insurance chief executive Tom Gitogo, the company decided to sell the land parcels after abandoning its earlier plan to build properties due to the slowed-down property market over the past two years.
"The property market has slowed down over the past two years so we decided not to be a developer ourselves," Mr. Gitogo said.
He added that the company would continue to hold the land if it does not get attractive offers.
The company is selling 512 acres in Kajiado and 200 acres in Kiambu, with the insurer expected to get more than Sh10 billion if it sells all the pieces, based on price estimates by real estate firms.
The redemption of the bond will save CIC Sh650 million in annual interest expenses, with the company's corporate bond issued on October 2014 having a fixed interest rate of 13 percent per annum.
