Responses by Reinsurance Companies in Kenya to Changes in the Environment: the Case of Kenya Reinsurance Corporation (Kenya Re) Limited
Abstract
The objectives of the study was to establish the response of Kenya-Re to the changes in
the business environment The study was conducted by carrying out in-depth interviews
with chief executive and departmental heads .The findings confirmed that the company
operates in a rapidly changing environment characterized by many challenges These
challenges include increase local and international competition. technological changes.
overstaffing, bureaucratic processes due to 100% ownership by the government. poor
economic performance. failed privatization attempt and lost compulsory policy and treaty
business cessions.
The study established several responses by Kenya Re to the changes in the business
environments it operates in. Great emphasis has been placed on local and international
marketing function There have been deliberate and focused staff training programmes
developed. Retrenchments were done three times to rationalize staff Investments were
done in real estate to generate rental income and undeveloped land acquired for future
speculative sale. Technology has been embraced including computerization and
creation of a website. Financial investments have been spread out between short and
long term ones.
The study recognizes Kenya Re is unique from the other five reinsurance companies
operating in Kenya. It is state owned and was in a monopolistic position for nearly three
decades. It's also a market leader. It's the only J,e with a single shareholder. This study
therefore recommend that a study be carried out to find out the kind of responses
adopted by the other reinsurance companies to changes in the business environment.
It further recommend that Kenya Re should seriously consider privatization to delink
itself from the bureaucratic control of the government in the interest of quick commercial
decision making on key business issues.
Citation
Masters of business administrationPublisher
Univesity Of Nairobi Faculty of Commerce, University of Nairobi.