Kenya's ins. sector looks to a brighter future
Friday, 09 07 2018, Category: Insurance and Reinsurance, Country: Africa
Insurance companies in Kenya are hoping for a rebound after posting a cumulative 18 per cent decline in profitability in 2017, marking a difficult year for the industry.
In an indication of how tough the environment was for Kenya’s insurance sector, profits dropped to $118.2 million from $144.8 million in 2016.
The decline is attributed to banks’ interest rate capping, which continues to have a spiral effect because a slowdown in lending has affected investments in projects and assets that are insurable.
Another cause was the slowdown in the uptake of insurance products by an income-sensitive population whose disposable incomes have dwindled due to hard economic times.
Source: The East African