Financially Troubled Kenya Re sets eyes to Uganda

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Kenya Reinsurance Corporation Limited (Kenya Re) is the oldest Reinsurer in Eastern and Central Africa. It was established through an Act of Parliament in December 1970 and commenced business in January 1971.

Since its inception, Kenya Re has progressively and consistently continued to provide reinsurance services to more than 265 companies spread out in over 62 countries in Africa, the Middle East, and Asia.

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In 2004, the Corporation made an effort to benchmark its services with international standards by subjecting itself to a rating process by an International rating Agency, A. M Best. It was rated B+ (Very Good). The Corporation has successfully maintained this rating to date.

Now Kenya Re is set to open a subsidiary in Uganda, deepening its presence in the East African country.

The board sees this as part of the company’s expansion program and shareholders will vote on this as a special resolution during the annual general meeting (AGM) set for June 14.

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“That the company be and is hereby authorized to establish a subsidiary in Uganda on such terms and conditions as may be determined by the relevant regulatory authorities and the board of directors,” says the firm in its AGM notice.

Directors will also be seeking shareholders’ nod to determine the conditions upon which the planned subsidiary will be established. If the resolution is passed, the company will seek regulatory approvals to set up the business.

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This will deepen its presence in Uganda, having entered that market in 2015 by acquiring five percent stake in the Uganda Reinsurance Company at Sh20 million. As at the end of 2017, Kenya Re had raised its stake to 11.5 percent in Uganda Re, according to its annual report.

 

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