30 April 2014

Kenya Re Plans Sh4 Billion Office Block in Upper Hill

The Kenya Reinsurance Company plans to put up a commercial building in Nairobi's Upper Hill area to capitalise on growing demand for office space in the zone.

Kenya Re's managing director Jadiah Mwarania said yesterday that while the plans are still in the initial stages, the tentative budget for the building has been set at Sh4 billion.

"We hope to probably break ground for the new building next year," Mwarania said yesterday at the company's investor briefing. The NSE-listed re-insurer already has another building in Upper Hill that houses companies such as Ernst and Young, Kenya Tourist Board and Kenya Roads Board. The twin-tower building has 10 floors on one tower, while the other tower has six floors.

Kenya Re reported a drop in its investment income for the year 2013 due to a lower interest income and absence of the one-off gain made in 2012 when it sold a property it owned in Nairobi's South C area.

Investment income dropped to Sh2.3 billion last year from Sh2.8 billion in 2012. Kenya Re said its rental income for 2013 was Sh545 million. It also offers mortgages to the public and said it recorded increased uptake as a result of a huge housing demand and growth in population in the country.

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