The Treasury has proposed amendments to the insurance law that would compel local insurers to cede a larger portion of their reinsurance business to Kenya Reinsurance Corporation (Kenya Re), raising the share from 20 to 25 percent and, for the first time, making it permanent.
The plan, detailed in the draft Insurance (Amendment) Regulations 2025 and backed by a Regulatory Impact Statement now before stakeholders, has stirred debate in a sector that has struggled with slow premium growth and weak capitalisation.