Kenya Re board wants the government to offload stake

Outgoing Kenya Re board chairperson Nellius Kariuki (left) and managing director Jadiah Mwaraniah during the firm’s AGM at the KICC on June 26, 2015. DIANA NGILA | NATION MEDIA GROUP 

In Summary

• The State owns 60 per cent of Kenya Re’s equity and the rest is shared by the public. It is not clear which route the underwriter will use to offload the shares to the market.
• In her last capacity at the position, she moved the motion to set up a Southern Africa subsidiary to cater for the growing market. The Sh300 million investment will be set up in Lusaka, Zambia.
• The new chairman will either be announced by a full constituted board, or the government. Three board directors will be elected by the shareholders by the end of the year to fill the present vacant positions.

By NATION CORRESPONDENT
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Kenya’s largest reinsurer wants the government to sell more shares to increase liquidity of its stock at the stock market.

Speaking during the firm’s Annual General Meeting held Friday at the KICC’s Comesa grounds, the managing director Jadiah Mwaraniah said the proposal will be sent to the government once the board approves.

“It is something the management has thought about, but yet to make a strong proposal out of it. We have to show the advantages and if the board own it, then we give the proposal to the government,” said Mr Mwaraniah at the sidelines of the stakeholder’s meeting.

The State owns 60 per cent of Kenya Re’s equity and the rest is shared by the public. It is not clear which route the underwriter will use to offload the shares to the market.

“The proposal will contain details on whether to source for private equity funds or float the shares … we will have a complete picture once we work on the proposal,” added Mr Mwaraniah.

The AGM saw both the board and stakeholders bid farewell to the outgoing chairman, Ms Nellius Kariuki, who has served at the helm for the past nine years.

CATER FOR GROWING MARKET

In her last capacity at the position, she moved the motion to set up a Southern Africa subsidiary to cater for the growing market. The Sh300 million investment will be set up in Lusaka, Zambia.

Reminiscing the moments she had as the first woman to hold the chairman’s post in a listed firm, Ms Kariuki asked the management and staff of Kenya Re to support the incoming head.

“I have no doubt that the affairs of the corporation will be in good hands. I wish that the new chairman experiences the same exalting moments that I experienced during my tenure and to which I bear in mind as I leave amidst the feeling of having accomplished my mission in pursuit of the demands of the corporation and in fulfillment of the confidence reposed in me,” she said.

The new chairman will either be announced by a full constituted board, or the government. Three board directors will be elected by the shareholders by the end of the year to fill the present vacant positions.

Kenya Re proposed a 16.7 per cent improvement of dividend payout per share to Sh0.70 cents on the backdrop of improved full year financial result in 2014. The firm posted a 12 per cent increase in net profits to Sh3.1 billion during the period.