Kenya Re

Kenya Re - 2008 Annual General Meeting

Kenya Re held its first Annual General Meeting (AGM) as a listed company last Thursday at the Moi International Sports Centre, Kasarani.

One of the Best Performers at the NSE
With an increased profit before tax of Sh.966 million in 2007 up from Sh.796 million the previous year, Kenya Re chairlady Nelius Kariuki told the shareholders present that the growth made the insurance behemoth one of the best performers on the Nairobi Stock Exchange (NSE). “This good performance impacted positively on the shares in the NSE as the share consistently performed above the NSE index,” said Kariuki who was re-elected as board chairman.

“This impressive performance is a reflection of the stakeholders’ confidence in Kenya Re as a strong and stable financial reinsurer coupled with prudent leadership at the board level and serious commitment to hard work by the management and staff,” she added.

Questions over Proposed Dividends
Some shareholders expressed their disdain at the proposed dividend of Sh.0.35 per share saying that it was unjustified considering the underwriter’s improved performance in the last financial year. Kariuki responded to the complaint stating that the final dividend was the last four months of 2007 following its debut in the market on August 27th that ushered in over 151,000 investors to its books.
Managing Director Eunice Mbogo added that the company required funds to branch into new investment opportunities which include the establishment of a satellite office in West Africa and diversification into new product lines such as commercial mortgage and offshore investments hence the dividend. Despite uproar over the dividend, it was eventually endorsed with Kariuki and Mbogo promising to look into the issue before the next AGM.

Appointment of an Independent Auditor
One shareholder questioned the appointment of an independent Auditor-General stating that investors should appoint their own auditor so as to have influence over the way their funds are being handled. The shareholder was referred to the Public Audit Act of 2003 which empowers the Controller and Auditor-General to nominate other auditors to carry out the audit on his or her behalf.

Director Re-Election
Another shareholder asked why investors were being asked to re-elect directors who according to the report had no financial interest in the company. However, Mbogo clarified the situation saying that the figures on the corporate governance statement which indicated that the chairman and director Jacob Haji Ali had nil shares in the company was due to a printing error and would be corrected.
The Kenyan government is the biggest shareholder in the company with 60 percent. It is represented on the board by Treasury Permanent Secretary Joseph Kinyua who was also re-elected by the shareholders. Mbogo also clarified the status of the balance sheet saying that it was not consolidated and that Kenya Re Properties Limited and Wedco Limited were associate companies and not subsidiaries as indicated in the financial report.

Lunch & Gifts Shareholders who attended the AGM received hampers which included lunch courtesy of Tin Tin restaurant and Kenya Re branded umbrellas.

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