State-controlled Kenya Reinsurance Corporation is looking to establish a Shariah-compliant subsidiary in Egypt after raising $52.5 million through issuance of bonus shares, according to reports from news site All Africa.
Retakaful is the Islamic alternative to reinsurance and operates on Sharia principles.
Kenya Re’s new capital base meets the revised Egyptian insurance law introduced last year.
“Increasing our capital base was necessary for accessing some markets. We are thinking of Egypt for Re-takaful business given the high Muslim population. That could be our next stop next year,” said managing director Jadiah Mwarania.
He added that the firm had also done feasibility studies for Sudan and Nigeria but will be giving priority to Egypt. The company also has presence in Uganda, Ivory Coast and Zambia.
Mwarania noted that such a move would increase the firm’s retakaful premiums beyond the $10 million mark.
“The potential is huge given the growing Muslim population and financial inclusion is also rising. Products such as ‘sukuk’ bonds will mean more reinsurance,” Mwarania added.
