Kenyan insurers remain attractive to foreign investors

According to Fitch Ratings, the Kenyan insurance market is attractive to foreign investors. It is relatively sophisticated and allows an easy access to all East Africa's business. The infatuation for the acquisition of local insurance companies, which exists over the past few years, has exerted upward pressure on the valuation of players.

The rating agency considers that the consolidation of the sector concerns henceforth small-sized companies. The market remains fragmented and competitive, which urges insurers to seek economies of scale through acquisitions.