Kenya Re-insurance Corporation (Kenya Re) has become the latest shareholder in the African Trade Insurance Agency (ATI), investing Ksh87.5mn (around US$1mn) and increasing the scope of trade and political risk insurance in East Africa.

Welcoming the investment, CEO of the ATI, George Otieno, earmarks 59 projects in Kenya that have recently been approved by the national treasury as potential opportunities for offering cover. “With partners such as Kenya Re, our underwriting capacity has grown, making ATI better armoured to provide investment and trade insurance for the multi-billion projects expected in Africa,” he says.

The ATI’s shareholding currently amounts to US$179.5mn. Before Kenya Re’s investment, the African Development Bank injected equity worth US$15mn in 2013. Other corporate shareholders include the African Reinsurance Corporation, Atradius, Comesa, PTA Bank and Italian ECA Sace.

Managing director of Kenya Re, Jadiah Mwarania, believes the partnership will increase the business credibility of East Africa as well as grow the company’s portfolio. “With the emergence of reinsurance needs around Africa, this partnership will create a platform through which we can strengthen our capacity to reach the untapped and potential markets in Africa.”