Kenya Re pumps Sh284m in Zambia subsidiary on new capital rules
Kenya Reinsurance Corporation has injected 50 million Zambian Kwacha into its Zambian subsidiary to meet new regulatory capital requirements. The move ensures the unit complies with the 150 percent capital adequacy ratio mandated by the Zambian government by 2025.
Why it matters
This highlights the impact of tightening regional financial regulations on cross-border insurance operations in Africa.
Kenya Reinsurance Corporation increased its investment in its Zambian subsidiary by Sh284 million last year, more than doubling its total capital in the unit to meet the revised capital requirements.
The reinsurer’s latest disclosures show the fresh capital increased the value of investment in the Zambian unit to Sh498.5 million in 2025 from Sh214.9 million a year earlier.
Kenya Re Group MD Hillary Wachinga told the Business Daily the reinsurer injected 50 million Zambian Kwacha (Sh284 million at the time of recapitalisation) to comply with the new requirements.
“The 50 million Kwacha was to meet regulatory requirements in line with Zambia’s Pensions and Insurance Authority,” Dr Wachinga said.
Zambia introduced the Insurance (General) Regulations, 2022 requiring insurers and reinsurers to maintain a capital adequacy ratio of at least 150 percent and set December 2025 as the deadline for compliance. Insurers and reinsurers were given three years to comply.
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