Foremost Kenyan reinsurer, Kenya Re has invested Sh187.7 million ($1.8 million) towards establishing its new Zambian subsidiary, Kenya Reinsurance Corporation Zambia, as it eyes a share of the reinsurance market in Southern Africa.
The reinsurer enjoys a fairly stable market share in its home country owing to a mandatory slice of 20 percent guarantee it has till the year 2020, a report by BusinessDaily Africa confirmed.
This guaranteed share is backed by the government of Kenya which owns a 60 percent share in the firm.
Kenya Re earns most of its revenue from Kenya but is hoping to diversify its earnings in the coming years. This was confirmed in its latest Annual Report.
It has earmarked Southern Africa as an attractive market for its diversification plans and hopes to use its newly established insurance business to capture this market.
Kenya Reinsurance Corporation Zambia was established at the tail end of 2016 and will offer reinsurance services within Zambia, and Southern Africa.