(JUBA) – Regional insurer Old Mutual Holdings Plc announced plans to sell its entire portfolio of properties across East Africa as part of a major restructuring that includes its earlier exit from the South Sudan insurance market. The company said it is seeking buyers in Kenya, Uganda, Rwanda, and South Sudan as it withdraws from a sector it described as underperforming.
Among the buildings on offer is the Equatoria Tower in Juba, which currently stands as the tallest building in the country.
The decision comes as the group restructures its business to focus on areas with higher growth prospects. The sale aligns with Old Mutual’s earlier exit from the insurance market in South Sudan, citing weak performance and difficult market conditions.
Equatoria Tower has long been one of Juba’s most prominent commercial landmarks. Alongside the tower, the company also owns Juba Apartments and a separate plot of land in the capital.
The decision follows years of weak returns in the real estate market, where both property values and rental income have remained flat. Old Mutual said that despite holding prime buildings in capital cities across the region, yields have not kept pace with wider market interest rates.
The group’s most prominent asset is the 31 storey Old Mutual Tower in Nairobi’s Upper Hill, valued at 5.5 billion Kenyan Shillings (about 25.3 million US dollars or 116 billion South Sudanese Pounds at the current exchange rate). Other Kenyan properties include Equity Centre, Telkom Place, Union House, NCBA Annex, and Kimathi House.
In South Sudan, Old Mutual owns a plot of land, Juba Apartments, and the Equatoria Tower. The company confirmed it had already received offers for some of its properties in Juba, though negotiations remain ongoing. In Uganda, the portfolio includes Nakawa House and Nakawa Business Park, while Rwanda’s holding consists of a single plot of land valued at 258.8 million Kenyan Shillings (about 1.1 million US dollars or 5.1 billion SSP).
Old Mutual’s regional property portfolio was valued at 19.4 billion Kenyan Shillings (about 84.3 million US dollars or 388 billion SSP) at the end of last year, compared to 21.2 billion previously.
Selected Old Mutual Properties in the Region
| Country | Properties Included | Notable Asset |
|---|---|---|
| Kenya | Old Mutual Tower, Equity Centre, Kimathi House, others | Old Mutual Tower (31 floors) |
| Uganda | Nakawa House, Nakawa Business Park, land plot | Nakawa Business Park |
| Rwanda | Land parcel | Kigali property under sale |
| South Sudan | Equatoria Tower, Juba Apartments, land plot | Equatoria Tower (tallest in South Sudan) |
Chief Executive Officer Arthur Oginga said sales agreements had already been signed for two properties in Kenya, while Rwanda’s government had paid a deposit for the Kigali property. In Uganda, the company was at the valuation stage. In South Sudan, he confirmed that “some offers” were being reviewed.
“We will be selling the Old Mutual Tower as a standalone unit and are in discussions with potential buyers. If we receive offers for the entire portfolio, we will consider them as well,” Mr Oginga said.
Old Mutual has faced steep financial pressure in recent years. Net earnings dropped by 99 percent to 5 million Kenyan Shillings (about 22,000 US dollars or 101 million SSP), down from 327 million previously. The company attributed this fall to reduced interest income, losses in property values, and lower insurance premiums.
The firm also reported higher finance costs, particularly from loan refinancing on Ugandan assets. Insurance revenues fell by 57 million Kenyan Shillings (about 248,000 US dollars or 1.1 billion SSP), while its life business in Kenya was hit by rising claim ratios.
In earlier years, Old Mutual had considered pooling its East African assets into a single Real Estate Investment Trust (REIT) as a way of managing risk and improving liquidity. The plan was not implemented, and the company is now choosing to exit entirely from direct property holdings.
The sell off comes at a time when South Sudan, still a young market, is attempting to attract investors in commercial property despite regional instability.
