...Gateway to East Africa: Kenyan insurers' attractiveness for foreign investors has been supported by the relative market sophistication (despite low penetration rates) in Kenya, and access to the greater East African region. Investors' appetite for acquisitions in the insurance market has pushed up valuations significantly. Although premium and profit growth rates may support these valuations, Fitch Ratings believes that future M&A activity will focus on the consolidation of smaller licences. Consolidation Could Benefit Fragmented Market: Fitch believes that the Kenyan insurance market would benefit from further consolidation as insurers seek to improve scale. Despite a number of foreign companies, particularly from South Africa, entering the market, it still consists of many small insurance companies, making it fragmented and competitive. Poverty is Biggest Challenge: Fitch believes that the insurance industry will benefit from the steady economic growth of Kenya and favourable demographic...
