Kenya Reinsurance Corporation increased its investment in its Zambian subsidiary by Sh284 million last year as part of efforts to comply with revised capital regulations introduced by Zambia’s insurance regulator.
The additional funding raised the value of Kenya Re’s investment in the subsidiary to Sh498.5 million in 2025, up from Sh214.9 million the previous year. Group Managing Director Hillary Wachinga said the company injected 50 million Zambian Kwacha, equivalent to about Sh284 million at the time, to satisfy the capital requirements set by Zambia’s Pensions and Insurance Authority.
Under the Insurance (General) Regulations, 2022, insurers and reinsurers operating in Zambia must maintain a capital adequacy ratio of at least 150 per cent by December 2025. The regulations replaced the previous framework, which required only a minimum solvency margin of 10 per cent and fixed paid-up capital thresholds based on the nature of the business.
The new rules require insurers to maintain at least Sh150 in available capital for every Sh100 of risk underwritten, strengthening the sector’s ability to withstand large and unexpected claims.
Kenya Re said the capital injection reinforces its presence in Zambia, where it operates a wholly owned subsidiary that marks its 10th year of operations this year. The unit generated Sh514.07 million for the group during the last financial year, with the fresh capital expected to boost underwriting capacity and support future growth.
The investment forms part of Kenya Re’s broader regional expansion strategy. During the same period, the reinsurer advanced plans to establish a subsidiary in Tanzania and open an office in India.
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Kenya Re also maintains wholly owned subsidiaries in Côte d’Ivoire and Uganda, with investments of Sh1.96 billion and Sh584.2 million respectively. Total investment across its subsidiaries increased to Sh3.05 billion in 2025 from Sh2.76 billion a year earlier, largely driven by the Zambia recapitalisation.
The company said its regional subsidiaries remain central to its growth strategy by expanding its footprint across Africa while providing geographical diversification in an increasingly competitive and tightly regulated insurance market.
The Côte d’Ivoire subsidiary began operations in 2015, followed by Zambia in 2016 and Uganda in January 2023. Kenya Re, which is 60 per cent owned by the Kenyan government, currently serves more than 80 markets through its headquarters in Nairobi and its regional subsidiaries.
As part of its expansion plans, the reinsurer recently advertised senior leadership positions, including chief executive officer and chief finance officer, for its planned Tanzanian subsidiary based in Dar es Salaam.
