Kenya Re Managing Director Dr Hillary Wachinga during Kenya Re’s inaugural cocktail for chief financial officers drawn from its client base./HANDOUTKenya Reinsurance Corporation is strengthening its engagement with financial institutions to help insurance companies manage liquidity pressures, settle reinsurance obligations on time and expand their underwriting capacity.
Speaking during Kenya Re’s inaugural cocktail for chief financial officers drawn from its client base, Group Managing Director Dr Hillary Wachinga said the reinsurer was exploring closer partnerships between insurers and banks to provide financing solutions to companies facing cash-flow constraints.
The forum brought together representatives from leading financial institutions, including National Bank of Kenya, Kenya Commercial Bank and Diamond Trust Bank.
Kenya Re Managing Director Dr Hillary Wachinga during Kenya Re’s inaugural cocktail for chief financial officers drawn from its client base./HANDOUTWachinga said Kenya Re had already entered into payment arrangements with some of its clients but was going a step further by bringing banks into the conversation to develop financing solutions for other insurers.
Daniel Mwaniki, a senior manager at National Bank of Kenya, said the bank was prepared to engage insurance companies on structured financing arrangements, including facilities with repayment periods of at least four months.
Such financing, he said, could strengthen the working capital of insurers, allowing them to increase their underwriting capacity and extend more services to their customers.
The initiative comes at a time when Kenya Re is reporting stronger financial performance. For the six months ended June 2026, the reinsurer recorded a 42.8 per cent increase in profit after tax to KSh2.25 billion, up from KSh1.58 billion in the corresponding period last year.
Insurance revenue rose 14.4 per cent to KSh9.44 billion, while the insurance service result improved significantly to KSh1.25 billion from KSh303 million a year earlier.
Kenya Re’s total assets stood at KSh74.73 billion at the end of June, while shareholders’ funds increased to KSh57.57 billion.
The stronger performance comes against the backdrop of a largely underpenetrated insurance market in East Africa. Insurance penetration remains below three per cent in most regional markets, presenting significant room for expansion.
Kenya’s penetration is estimated at about 2.4 per cent, while Tanzania remains below one per cent. The wider East African market similarly continues to operate below its potential, creating opportunities for insurers and reinsurers to develop new products and reach underserved populations.
Tanzania is also opening new opportunities through regulation. The country has introduced mandatory inbound travel insurance for most foreign visitors entering mainland Tanzania, with the cover priced at US$44 and valid for up to 92 days. Citizens of EAC and SADC member states are exempt.
Wachinga said Kenya Re’s expansion into Tanzania was part of its broader regional growth strategy.
The company also used the event to recognise leading clients across its life and non-life business, including Minet Kenya, Madison General Insurance, Kenbright Reinsurance Brokers and APA Life Insurance.
Kenya Re is also preparing for an international CEOs’ conference in Abidjan and the launch of its foundation as it expands its regional corporate agenda.
