Kenya Re to receive higher mandatory cessions starting 2026

As part of a draft amendment to the Insurance Regulations, the Kenyan Government is proposing to increase the mandatory cession rate to Kenya Re from the current 20% to 25%.

The measure is set to take effect on 1 January 2026 and will apply to all life and non-life reinsurance treaties concluded for 2026 and beyond.

This initiative is intended to strengthen domestic reinsurance capacity, attract investment capital, and support the development of the local insurance market.

The government also anticipates that the increase in the mandatory cession rate will boost the revenues of Kenya Re, which is currently 60% owned by the State.