AM Best has affirmed the Financial Strength Rating of B (Fair) and the Long-Term Issuer Credit Rating of “bb+” (Fair) of Kenya Reinsurance Corporation Limited (Kenya Re) (Kenya). The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Kenya Re’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, neutral business profile and weak enterprise risk management.

Kenya Re’s balance sheet strength is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), which was at the strongest level at year-end 2025. A key driver of capital consumption is Kenya Re’s exposure to illiquid investments, such as private equity and real estate, which together account for approximately one-third of its investment portfolio. The balance sheet strength assessment also considers Kenya Re’s exposure to elevated levels of economic, political and financial system risks, which are associated with its core markets, as well as its concentration to Kenya, where 90% of its invested assets are located.

Kenya Re has a track record of adequate operating performance, evidenced by return-on-equity ratios that have exceeded inflation levels in Kenya moderately over the past five years. Since initiating corrective actions in 2020, the company’s non-life underwriting portfolio has reported technical profits in most years; however, results in 2025 deteriorated, partly due to receivable impairments, with the company reporting a net/net combined ratio of 110.6%, as calculated by AM Best. Overall earnings remain driven by solid investment income, reflecting the favourable, albeit declining, interest rate environment in Kenya.

Kenya Re is a composite reinsurer operating a relatively well-diversified portfolio by line of business across Africa, Asia and the Middle East. The company has privileged market access in Kenya, where it benefits from compulsory cessions from domestic insurers.

Kenya Re’s risk management framework is evolving, and its risk management capabilities are weak when compared with its risk profile. AM Best notes deficiencies in the company’s governance, illustrated by several instances of suspension or dismissal of its senior executives over the past decade.

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