Insurance companies in Kenya saw their profits plummet to less than 61.5% in 2018 to reach $ 33 million, marking their worst year of growth. On this same decreasing slope, the sector recorded a cumulative profit after tax of $ 33.7 million in 2018 compared to $ 87.7 million in 2017.
Note that the largest loss in the sector is recorded in the non-life business, which posted a loss of $ 26.6 million against $ 9.5 million a year earlier. In addition, commissions and expenses grew almost steadily with figures increasing from $ 652.7 million to $ 660.3 million. Growth that has negatively impacted the results of Kenyan insurance companies.
Some observers blame this plunge on the interest rate cap put in place in 2016, which has had the gift of limiting lending to investment projects and insurable assets for the country’s businesses.