The minimum capital requirement for reinsurance companies in Kenya has been raised to £6.1 million (Sh800 million) from £3.8 million (Sh500 million).
The amendment comes into effect through the legal notice 50 of the Kenya Gazette and gives reinsurers a grace period of two years to implement the changes. “This order shall in the case of reinsurers registered prior to the 14th June 2012, apply with effect from the 14th June 2012,” stated the gazette notice.
In his budget speech last week, finance minister Njeru Githae said emphasis needed to be put on strengthening of the financial services sector to cushion the country from global financial crises, with the eurozone’s ripple effect threatening African economies.
“Strengthening financial sector regulations and coordinated supervision within and across the border is critical to building effective firewalls necessary for achieving durable and stable growth,” said Githae.
Analysts said clarity ought to be given for reinsurers who had not registered by the stipulated date, as they may be unable to raise such an amount immediately.
