Old Mutual has received final regulatory approvals from the Financial Services Board (FSB) of South Africa and the Central Bank of Kenya to acquire a majority stake in Faulu Kenya.

The deal will enable the insurer to comply with Central Bank of Kenya’s requirements to have a diversified ownership and which bans investors who are not banks, foreign finance companies or the government from owning more than 25% of local banks.

Following completion of the transaction, which was initially signed in July, Old Mutual will be able to boost its presence in the country.

Old Mutual emerging markets CEO Ralph Mupita said this partnership with Faulu represents a significant further opportunity for the development of the company’s business across East Africa.

Old Mutual group chief executive Julian Roberts had said, "We are building on our existing business in Kenya with a significant extension of our distribution and product offering through this transaction. This is a further step in executing our strategy of expanding our African footprint."

Faulu serves with more than 400,000 customers, through a wide distribution network across Kenya with over 100 outlets, and also serves a similar demographic to Old Mutual’s Mass Foundation business in South Africa with an array of financial services products.