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Kenya Reinsurance Corporation Limited has postponed its Annual General Meeting of Shareholders for the fiscal year 2019 due to unsigned annual financial statements by the Auditor General.
According to Section 35 of the Public Audit Act 34 of 2015, Public companies are required to hold their AGMs within six months from and including the day following its accounting reference date in each year.
Kenya’s High Court Judge Justice David Majanja who heard the company’s matter that sought for an extension said “…I am satisfied that there are grounds for the Annual General Meeting scheduled to be held on 12th June 2020 be postponed.”
As a result, Majanja gave the order that “The time for holding the applicant’s Annual General Meeting for the financial year ended 31st December 2019 is extended for a period of six months from the date hereof.” (11 June 2020).
The Auditor-General is responsible for certifying the financial statements before they can be made public. However, the country has not had a new Auditor General since the expiry of Edward Ouko’s tenure in August 2019 following completion of his 8-year non-renewable tenure.
Kenya Reinsurance Corporation posted a 35 percent rise in profit before tax from Ksh 3.10 billion in 2018 to Ksh 4.18 billion in 2019 driven by 18 percent growth in gross written premiums in addition to 10 percent growth in investment income.
Gross written premiums grew by 18 percent to Kshs. 17.52 billion in 2019 from Kshs. 14.84 billion the previous year.
Net earned premiums rose by 9 percent from Kshs. 14.21 billion in 2018 to Kshs. 15.53 billion in the reporting period.
Investment income grew by 10 percent from Kshs. 3.39 billion to Kshs. 3.71 billion.
The Corporation’s cedant acquisition costs increased by 5 percent from Kshs. 3.89 billion to Kshs. 4.09 billion while the increase in gross premium written was 18 percent.
The shareholders’ funds grew by Kshs 3.58 billion, an increase of 13 percent, from Kshs 28.37 billion in 2018 to Kshs 31.95 billion in 2019.
