Kenya Reinsurance Corporation (Kenya Re) intends to establish a new subsidiary in Uganda as part of its strategy of expansion into new markets.
Shareholders are set to vote on the proposal at the reinsurer’s annual general meeting (AGM) on June 14.
“That the company be and is hereby authorised 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,” the company stated in its AGM notice.
If approved, the subsidiary would reinforce Kenya Re’s existing presence in Uganda, which consists of an 11.5% holding in Uganda Re.
Kenya Re reported in August 2018 that it was eyeing expansion into new markets around the world to boost income amid strong competition both locally and abroad.
CEO Jadiah Mwarania explained that Kenya Re’s business had suffered in recent years as several countries – including Uganda, Ethiopia, Zimbabwe, Ghana, Sri Lanka, Nepal, and Vietnam – domesticated their reinsurance markets or established state-owner national reinsurers.
“When they form these national reinsurers it means they get compulsory cessions which reduces the volume of business available for foreign reinsurers,” he said in a statement last year.
“We will counter this by setting up regional offices in response to domestication which will help us become more competitive. We are also pursuing new reinsurance markets such as northern Africa, Middle East and Asia.”
Reports suggest that the reinsurer is also looking to expand its line of products, particularly in re-takaful markets where it is already active.