Kenya Re Eyes Ugandan Market With a New Office

The Kenya Reinsurance Corporation (Kenya Re) has opened a new office in Uganda to increase its presence in the local market.

The Ugandan subsidiary, known as Kenya Re Uganda, has also been tasked with growing the Group's reinsurance and investment-related businesses in the region.

"Our presence in Uganda serves a vital purpose of bridging the gap of missing reinsurance services domestically," Kenya Re Group Managing Director Hillary M. Wachinga said.

"We want to partner with local insurance companies to reduce the reliance on international reinsurance which often comes at a higher cost," Wachinga added.

"By reinforcing our local presence, our goal is to foster self-sufficiency in the reinsurance sector and contribute to Uganda's economic growth by retaining value within the country."

Uganda's office now increases Kenya Re's portfolio, which includes Kenya Reinsurance Corporation Zambia Ltd and Kenya Reinsurance Corporation Ltd Cote d'Ivoire.

Its entry into Kampala comes at a time when the market has experienced growth fueled by a rising middle class, increased infrastructure, and a growing awareness of the importance of risk management.

According to the Insurance Regulatory Authority in Uganda, the sector recorded 19.23 percent growth in 2022, compared to 10.6 percent in 2021.

The gross written premiums grew from Ush1.11 trillion in 2021 to Ush1.32 trillion in 2022.

"Before we set up an office here, we analysed the market to determine what clients want," Kenya Re Uganda Board chairman George Steven Okotha said.

"We noted that they consider price, ability and willingness to pay claims, underwriting expertise, speed of service delivery, flexibility, innovation and credit quality/rating," he added.

"These factors guide how Kenya Re Uganda Limited runs business and they form part of our unique selling points."