Reinsurer to build high rise property in Nairobi

PHOTO | FILE Mr Jadiah Mwarania, Kenya Re MD. Mr Mwarania has announced Kenya Re will build a 22-storey commercial property on its 1.6 acres piece of land in Upper Hill, Nairobi.  NATION MEDIA GROUO

By JOHN NJIRU 

Kenya Reinsurance Corporation will build a 22-storey commercial property on its 1.6 acres piece of land in Upper Hill, Nairobi, in the second half of the year.

The local reinsurer has started a feasibility study for the project, which will lead to floating of tenders for design and construction, says managing director Jadiah Mwarania.

“The city centre is no longer an ideal location for most corporate business due to congestion of people and traffic. We intend to develop an ultra-modern building that provides enough capacity for both people and vehicle,” he said.

Kenya Re is targeting corporate clientele and multi-nationals in the modern green building fitted with smart technologies to maintain optimal use of recycled energy and water. To reduce high power consumption, the building will have solar panels, said Mr Mwarania.

The investment is expected to boost the reinsurer’s rental incomes from property, which stood at Sh575 million in 2012.

Kenya Re has five commercial buildings: Reinsurance Plaza in Nairobi, Mombasa and Kisumu; Kenya Re Towers in Upper Hill and Anniversary Towers — with total lettable area of 568,290 square feet.

It has also developed real estates in Nairobi (Bogani Road Residential Scheme, Karen Ndege Road Housing Scheme, Waiyaki Way Residential Scheme, Plainsview Housing Estate and South C Housing Scheme), Eldoret, Kisumu, Meru and Mombasa.

Local insurers have moved to diversify their investment in property and real estate portfolios to get better returns for shareholders, in addition to traditional underwriting business.

The firms include Britam, UAP Insurance, Pan-Africa Insurance and CIC Insurance.