CIC Group, linked to Kenyan tycoon Gideon Muriuki, unveils $5.6 million bonus issue

Key Points

• CIC Insurance Group is issuing 261.5 million bonus shares after a 94.2% profit surge, boosting liquidity and investor participation.
• Investors on record by April 22, 2025, will get one bonus share per 10 held, with distribution set for June 18, 2025.
• CIC’s 2024 profit jumped to $21.66 million, driven by an 80.9% rise in net investment income and 201% surge in investment returns.

CIC Insurance Group (CIC Group), a leading insurance and investment group partly owned by Kenyan tycoon Gideon Muriuki, is issuing $5.6 million in bonus shares following a banner year in 2024, where profits surged by 94.2 percent to $21.66 million.

The move underscores CIC Group’s commitment to enhancing superior shareholder value while strengthening liquidity and accessibility in the market.

CIC Group announces bonus share issue amid a banner year

CIC Group’s decision to issue bonus shares worth Ksh742.8 million ($5.6 million) is set to significantly increase the company’s share in circulation and enhance trading activity, ultimately broadening investor participation.

Shareholders will receive one bonus share for every 10 held, adding 261.5 million new shares to the market. Despite this, the company is keeping its dividend unchanged at Ksh0.13 ($0.001) per share. Investors on record by April 22, 2025, will receive both the bonus shares and dividends by June 18, 2025.

The decision follows a strong performance in 2024, with CIC reporting a 94.2 percent profit increase to Ksh2.8 billion ($21.66 million), up from Ksh1.4 billion ($10.83 million) in 2023. The company’s net investment income rose by 80.9 percent, while overall investment returns surged 201 percent to Ksh8.8 billion ($68.07 million). Insurance revenue also grew by 4 percent to Ksh27.4 billion ($211.98 million), reinforcing the company’s solid financial position.

By maintaining its dividend while issuing bonus shares, CIC is striking a balance between rewarding shareholders and preserving capital for expansion. With strong investment returns and disciplined risk management, the company is well-positioned for continued growth in East Africa’s competitive insurance market.

Strengthening market position and shareholder value

CIC Group, a Nairobi-based insurance and investment powerhouse with operations in South Sudan, Uganda, and Malawi, serves over 1 million clients through a vast network of 25 branches, 1,000+ financial advisors, and digital platforms.

Gideon Muriuki, CEO of Co-operative Bank Group, is CIC’s largest individual shareholder, holding a 6 percent stake (158,046,904 shares). Under his influence, the insurer’s strategic profit allocation—via bonus shares and stable dividends—reinforces its commitment to long-term value creation.

By expanding its share base, CIC with total assets of Ksh 61.9 billion($478.82 million), climbing by 23 percent from the prior year’s Ksh 50.3 billion($389.09 million), enhances stock liquidity, broadens investor access, and signals financial strength. This aligns with its broader vision of regional expansion and financial sustainability, ensuring sustained growth in East Africa’s dynamic insurance sector.