The government is protecting Kenya Re from competition

By extending the legal cession for the benefit of Kenya Re to 2015, the state allows the national reinsurer, in whose capital it owns 60%, to maintain its turnover. This decision goes against the interests of the local insurers who cannot proceed by way of competition.
Some insurers believe that this decision increased their reinsurance costs. The legal cession is of18% and accounts for 40% of the Kenyan reinsurer's turnover. Its removal scheduled for December 31, 2011 could have put Kenya Re in a difficult situation towards Zep Re, Africa Re and East Africa Re, which are its direct competitors.