Reinsurance Company Licence Fees and Charges in Kenya

A reinsurance company accepts risks ceded by primary insurers, providing them with financial capacity and stability. In Kenya, all reinsurers — whether transacting life or general reinsurance — must be licensed by the Insurance Regulatory Authority (IRA) under the Insurance Act, Cap. 487. Reinsurers face the highest minimum capital threshold in the insurance sector, reflecting the systemic importance of their role in the market.

Fees and Charges

Fee / Charge	Current Amount (KES)	Proposed Amount — Draft Regs 2025 (KES)
Licensing fee	250,000	750,000
Annual renewal fee	250,000	750,000
Late payment penalty (per day)	20,000	—

Minimum Capital Requirements

Reinsurance Class	Minimum Paid-Up Capital (KES)
General reinsurance business	1,000,000,000
Long-term reinsurance business	500,000,000

The CBK statutory deposit (5% of total assets, under lien to the IRA) also applies to reinsurers.

Application Requirements

The application process mirrors that for primary insurers. Key additional requirements for reinsurers include a reinsurance strategy document, treaty and facultative arrangements, actuarial certification for long-term classes, and demonstration of sufficient financial resources to cover underwriting liabilities and solvency margins over the first three financial years. All principal officers must satisfy the fit and proper test, and the company name must comply with Section 190 of the Insurance Act. The IRA's draft regulations propose that reinsurer licensing fees rise to KES 750,000 — a three-fold increase — and that annual fees follow the same trajectory to reflect the greater supervisory complexity of reinsurance entities.

Mandatory Reinsurance Cessions

Kenyan primary insurers are required to cede a portion of their risks to local reinsurers under the mandatory cession framework set out in the Insurance Regulations. This protects premium retention in Kenya and supports the capacity of locally licensed reinsurers such as Kenya Re. Regulated by the Insurance Regulatory Authority (IRA) under the Insurance Act, Cap. 487, Laws of Kenya.

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