Kenya Re profit rises to Sh1.5bn as forex losses ease

Kenya Reinsurance Corporation has reported a Sh1.5 billion net profit for the six months ending June 2025, representing an increase from Sh1 billion a year earlier, mainly supported by reduced foreign exchange losses.

The Nairobi-based reinsurer, which is majority owned by the government, saw its forex losses shrink sharply to Sh22.2 million compared to Sh844.2 million in the same period last year.

The company explained that the losses are linked to its dollar-denominated assets, including Eurobonds, whose interest income is set in US dollars.

Kenya Re serves more than 80 markets through its head office in Kenya and subsidiaries in Cote D’Ivoire, Zambia and Uganda, exposing its operations to currency fluctuations.

The reduction in forex-related costs helped offset a weaker performance from its core insurance business.

Kenya Re’s insurance service result dropped to Sh302.9 million from Sh606.6 million last year, weighed down by a sharp increase in expenses from reinsurance contracts, which grew to Sh598 million from Sh183 million.

Insurance service expenses declined to Sh5.4 billion from Sh6.6 billion, easing pressure despite a fall in insurance revenue to Sh6.3 billion compared to Sh7.4 billion in the same period last year.

Ceded commissions also went down during the period.

The company, however, managed to cut back on its operating and other expenses, recording Sh654.5 million against Sh964.7 million last year.

This, alongside the drop in forex losses, played a key role in supporting the reinsurer’s bottom line despite challenges in its core operations.