Kenya Reinsurance Corporation (Kenya Re) posted a 42.8% rise in profit after tax to KSh 2.25 billion for the six months ended 30 June 2026, its highest half-year net profit on record. The strong performance was driven by a sharp rebound in the core underwriting business after a difficult 2025.
The NSE-listed reinsurer, majority-owned by the Kenyan government, released unaudited results showing insurance service result (the clearest measure of underwriting performance) soaring 314.2% to KSh 1.25 billion from KSh 303 million in H1 2025. The board did not declare an interim dividend.
H1 2026 Financial Highlights
| Metric | H1 2026 | H1 2025 | Change |
|---|---|---|---|
| Profit After Tax | KSh 2.25 billion | KSh 1.58 billion | +42.8% |
| Insurance Service Result | KSh 1.25 billion | KSh 303 million | +314.2% |
| Total Insurance Revenue | KSh 9.44 billion | KSh 8.26 billion | +14.4% |
| Net Investment Income | KSh 2.62 billion | KSh 2.71 billion | -3.3% |
| Profit Before Tax | KSh 3.22 billion | KSh 2.24 billion | +44.1% |
| Total Assets | KSh 74.73 billion | KSh 72.20 billion | +3.5% |
| Shareholders’ Funds | KSh 57.57 billion | KSh 54.51 billion | +5.6% |
| Earnings Per Share | KSh 0.40 | KSh 0.28 | +42.9% |
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Key Growth Drivers
The standout feature of the results was the dramatic recovery in underwriting. Management attributed the 314.2% jump in insurance service result to tighter underwriting discipline and better risk selection after a weak 2025, when the full-year underwriting result had collapsed by more than 96%.
Total insurance revenue grew a solid 14.4% to KSh 9.44 billion, while net insurance revenue rose 13.2% to KSh 7.16 billion. Net investment income dipped slightly by 3.3% to KSh 2.62 billion as the company shifted funds from bank deposits into listed equities.
Administrative expenses rose 21.7% to KSh 755.3 million as the firm invested in strategic expansion and growth initiatives. Cash generated from operations, however, surged more than four-fold to KSh 3.78 billion, reflecting improved working capital and underwriting cash flows.
Strategy and Outlook
Under Managing Director Dr Hillary Wachinga, Kenya Re continues to expand through its wholly owned subsidiaries in Uganda, Zambia and Côte d’Ivoire. Regional diversification remains a core long-term strategy as the company seeks to reduce reliance on the Kenyan market and build a more resilient underwriting book.
Analysts continue to view Kenya Re as significantly undervalued on the NSE, with the stock trading at a deep discount to book value (often below 0.2x). The strong H1 recovery in underwriting, combined with a solid balance sheet, strengthens the investment case for patient long-term holders.
Dividend Profile and Peer Comparison
Kenya Re has maintained a conservative dividend policy. The company paid a final dividend of KSh 0.15 per share for both FY2024 and FY2025, resulting in a trailing yield of approximately 4.0–4.4% at current share prices. The payout ratio remains low (around 21% of FY2025 earnings), reflecting a preference for capital retention to fund regional growth.
Compared with other NSE-listed insurers:
- Kenya Re – Conservative payout (~21%), current yield ~4.1–4.4%, deep P/B discount, underwriting-driven recovery.
- Jubilee Holdings – Higher absolute dividends, moderate yield (around 3–4%), larger scale.
- CIC Insurance – Cyclical payouts linked to retail/SACCO performance, yield typically 2.5–3.5%.
- Britam Holdings – Heavy capital reinvestment, low or zero recent dividends.
- Sanlam Kenya – Focused on balance-sheet repair, no recent dividend.
Kenya Re’s combination of strong earnings coverage, low payout ratio and asset discount makes its dividend among the more secure in the sector, even if the absolute yield is not the highest.
Read also:KAA Profit Halves to Sh3.8 Billion as JKIA Faces New Debt Crisis
Bottom Line for Investors
The H1 2026 results mark a clear turnaround in Kenya Re’s core underwriting business after a difficult 2025. Profitability, cash flow and capital strength all improved. The absence of an interim dividend is consistent with the company’s long-standing capital preservation approach.
For investors, the story is less about chasing high current yield and more about acquiring a solid reinsurance franchise trading at a significant discount to book value, with improving underwriting quality and regional growth potential.
As always, investors should monitor the sustainability of the underwriting recovery through the second half of 2026 and any further developments on governance and regional expansion.
Sources
- Khusoko – Kenya Re H1 2026 Results
- Business Today – Kenya Re H1 2026 Net Earnings
- The Star – Kenya Re profit jumps 42.8%
- Mwango Capital and NSE market data (dividend history and peer yields as of August 2026)
- Kenya Reinsurance Corporation official results announcements