South African groups are keeping an eye on the Kenyan market

Kenyan insurers have only a few months to comply with the new legislation which requires a new minimum share capital. After June 2010, any insurer failing to meet this requirement will have its license withdrawn. Analysts are, therefore, expecting takeover and merger operations. South African companies are interested in investing in Kenya. South African life insurers, with the exception of Old Mutual, already established, are on the rush. That is the case of Metropolitan and Sanlam which are seeking acquisitions in Africa. Sale prices, however, deemed too high, stand as a major impediment to the desire of getting established in Kenya.