Kenya Re wants to establish a Shariah-compliant subsidiary in Egypt.
This is set to be carried out after the reinsurer completes a bonus issue which would increase its paidup capital by KES5.25bn ($51m), reported Business Daily Africa.
The state-controlled reinsurer says last year’s decision to issue an additional 2.099bn bonus shares saw its capital base quadruple from KES1.75bn to KES6.99bn.
Kenya Re’s new capital base will meet the proposed new Egyptian insurance law, which is still going through the legislative process and would raise the required minimum capital for reinsurers to EGP1bn ($64m) from EGP60m.
“We are thinking of Egypt for retakaful business given the high Muslim population. That could be our next stop next year,” said Kenya Re's managing director Jadiah Mwarania in an interview.
He said his company had also carried out feasibility studies for Sudan and Nigeria but will give priority to Egypt. The company also has presence in Uganda, Ivory Coast and Zambia.
The Nairobi-based reinsurer started its retakaful window in 2013.