Kenya Re turns to banks to unlock insurance industry growth

Kenya Reinsurance Corporation is seeking to deepen collaboration between insurers and commercial banks as it moves 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.

Kenya Re Group Managing Director Dr Hillary Wachinga said the corporation was looking beyond traditional reinsurance relationships by working with financial institutions to develop financing solutions for insurers facing cash-flow challenges.

Representatives from National Bank of Kenya, Kenya Commercial Bank and Diamond Trust Bank participated in the forum.

Wachinga said 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, said the bank was willing to consider structured financing arrangements for insurance companies, including facilities with repayment periods of at least four months.

The objective, he said, would be to strengthen insurers’ liquidity and enable them to underwrite more business, ultimately expanding insurance access to customers.

The move comes as Kenya Re posts a strong set of half-year numbers.

For the six months ended June 2026, the reinsurer recorded a 42.8 per cent increase in profit after tax to KSh2.25 billion. Insurance revenue rose by 14.4 per cent 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.

The performance provides a stronger financial platform as Kenya Re pursues opportunities beyond the Kenyan market.

The wider insurance industry, however, still has significant room for growth. Insurance penetration in Kenya remains at around 2.4 per cent, while penetration in several East African markets is below one per cent. Regional penetration remains relatively low compared with more mature insurance markets, pointing to a substantial protection gap.

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.

For Kenya Re, the developments reinforce the strategic importance of regional expansion.

Wachinga has positioned Tanzania as an important market in the corporation’s growth strategy as the reinsurer seeks to benefit from rising insurance demand across East Africa.

The company 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.