Kenya Reinsurance Corporation is seeking to deepen collaboration between insurers and commercial banks to address liquidity constraints and unlock additional underwriting capacity in the insurance sector. The initiative was unveiled during the reinsurer's inaugural engagement with chief financial officers from its client base, bringing together insurance executives and representatives of major banks. This move aims to provide financing solutions for insurers facing cash-flow challenges.
Kenya Re Group Managing Director Dr. Hillary Wachinga stated that the corporation was looking beyond traditional reinsurance relationships by working with financial institutions to develop financing solutions for insurers. Representatives from National Bank of Kenya, Kenya Commercial Bank, and Diamond Trust Bank participated in the forum. Wachinga mentioned that Kenya Re had already agreed on payment plans with some clients but wanted to provide a broader solution by connecting insurers with banks that could support their financing needs.
Daniel Mwaniki, a senior manager at National Bank of Kenya, expressed the bank's willingness to consider structured financing arrangements for insurance companies, including facilities with repayment periods of at least four months. The objective is to strengthen insurers' liquidity and enable them to underwrite more business, ultimately expanding insurance access to customers. This collaboration is expected to benefit both insurers and banks.
Kenya Re posted a strong set of half-year numbers, with a 42.8% increase in profit after tax to KSh2.25 billion for the six months ended June 2026. Insurance revenue rose by 14.4% to KSh9.44 billion, while the insurance service result increased to KSh1.25 billion from KSh303 million in the previous year. The company's total assets stood at KSh74.73 billion, while shareholders' funds increased to KSh57.57 billion.
Despite Kenya Re's strong performance, the wider insurance industry in Kenya still has significant room for growth. Insurance penetration in Kenya remains at around 2.4%, while penetration in several East African markets is below 1%. Regional penetration remains relatively low compared with more mature insurance markets, pointing to a substantial protection gap. This gap presents opportunities for growth and development in the insurance sector.
Tanzania, in particular, is undergoing regulatory changes that could create new opportunities for insurers. The country has introduced mandatory inbound travel insurance for most foreigners entering mainland Tanzania. The policy costs US$44 and provides cover for up to 92 days, with citizens of EAC and SADC countries exempted. This development reinforces the strategic importance of regional expansion for Kenya Re.
Kenya Re also recognised leading clients during the CFO forum, with Minet Kenya, Madison General Insurance, Kenbright Reinsurance Brokers, and APA Life Insurance among organisations honoured for their contribution to Kenya Re's business. The reinsurer is also preparing for an international CEOs' conference in Abidjan and plans to launch its foundation as part of its broader corporate development agenda.
Key points
- Kenya Reinsurance Corporation seeks deeper collaboration with commercial banks to address liquidity constraints and unlock additional underwriting capacity in the insurance sector.
- The insurance industry in Kenya still has significant room for growth, with insurance penetration at around 2.4%.
- Tanzania's introduction of mandatory inbound travel insurance presents new opportunities for insurers.
