Responses by reinsurance companies in Kenya to changes in the environment: the case of Kenya Reinsurance Corporation (Kenya Re) Limited
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.