Kenya Reinsurance Corporation’s profit after tax climbed 42.8% to KSh2.25 billion in the six months to June 2026, driven by a sharp turnaround in the underwriting business that had all but collapsed the year before.
The Nairobi Securities Exchange listed reinsurer, 60% owned by the Kenyan government, released unaudited results on 22 August 2026 showing insurance service result, the clearest measure of how well the core reinsurance business performed, surging 314.2% to KSh1.25 billion. Total insurance revenue grew 14.4% to KSh9.44 billion, and net insurance revenue rose 13.2% to KSh7.16 billion. The board did not declare an interim dividend.
The Numbers
| Metric (KSh) | H1 2026 | H1 2025 | Change |
|---|---|---|---|
| Total insurance revenue | 9.44B | 8.26B | +14.4% |
| Net insurance revenue | 7.16B | 6.32B | +13.2% |
| Insurance service result | 1.25B | 303M | +314.2% |
| Net investment income | 2.62B | 2.71B | -3.3% |
| Profit before tax | 3.22B | 2.24B | +44.1% |
| Profit after tax | 2.25B | 1.58B | +42.8% |
| Total comprehensive income | 3.05B | 2.27B | +35.1% |
| Total assets | 74.73B | 72.20B | +3.5% |
| Shareholders’ funds | 57.57B | 54.51B | +5.6% |
| Earnings per share | 0.40 | 0.28 | +42.9% |
Why The Turnaround Matters
The rebound in underwriting profit reverses a trend that battered Kenya Re through 2025. For the full year ended December 2025, the reinsurer’s insurance service result collapsed 96.3% to just KSh108 million from KSh2.95 billion in 2024, as underperformance in its international treaty business and its Zambia and Côte d’Ivoire operations dragged down the group. Net profit for that full year fell 11.6% to KSh3.92 billion.
Against that backdrop, a 314.2% jump in insurance service result for a single half year points to a real recovery in the underwriting book rather than a one off gain. Net insurance and investment result rose to KSh3.94 billion from KSh1.83 billion, and the corporation booked a currency translation gain that helped push total comprehensive income up 35.1% to KSh3.05 billion.
Net investment income slipped 3.3% to KSh2.62 billion, a mild pullback after investment income had carried the group’s earnings through last year’s underwriting slump. Kenya Re had leaned heavily on that income stream in 2025, when it grew 41% and kept the corporation profitable despite the underwriting losses.
Balance Sheet And Governance Backdrop
Total assets grew 3.5% to KSh74.73 billion, continuing a longer expansion that has seen the balance sheet grow from KSh38.49 billion in 2016. Shareholders’ funds rose 5.6% to KSh57.57 billion.
The results land months after a governance dispute that shadowed the corporation through the second half of 2025. The board suspended managing director Hillary Wachinga for roughly two months over a disciplinary process he challenged in court, arguing it violated his rights to a fair hearing. The case was later withdrawn and Wachinga was reinstated. Kenya Re’s insurance penetration challenge is not unique to the company. Kenya’s overall insurance uptake remains among the lowest of major African economies, a gap that industry analysts have linked to regulatory reform and market consolidation as the paths most likely to lift penetration over time.
No Interim Dividend
The board did not declare an interim dividend for the period, consistent with its usual practice of paying dividends only at year end. Kenya Re maintained a full year payout of KSh0.15 per share for 2025, worth roughly KSh840 million in total, even as profit fell that year, a decision the company framed as a signal of financial stability despite the earnings pressure.
Outlook
Kenya Re’s first half performance suggests the corporation is pulling its underwriting business back from the brink after a punishing 2025. Sustaining that recovery through the second half, while investment income cools from last year’s highs, will determine whether shareholders see the dividend grow again after a payout that outpaced operating cash generation in the prior year.
