Kenyan insurance brokers hit hard by Tanzania’s two-thirds rule

Cicero · Jul 25, 2017

Kenyan insurance brokers operating in Tanzania will be forced to cede shareholding to locals under a new law which cut by half the ownership quota allowed for foreigners.

Fresh amendments to the Insurance Act sets the mandatory stake that must be held by Tanzanian citizens to be at least two-thirds from the initial one third or 33 per cent.

READ: Brokers want importers locked out of online portals

It is estimated that a significant chunk of Tanzania’s 124 insurance brokers are foreign-owned, with a substantial number being backed by Kenyan investors.

Some of the Nairobi-based firms selling and negotiating insurance products in Dar es Salaam include Aristocrats Insurance Brokers Ltd, Eagle Africa Insurance Brokers Ltd, MIC Global Risks, and Pacific Insurance Brokers.

Others are global insurance brokers such as AoN and JW Seagon, which have operations across the region.

READ: Insurance brokers eye first pay rise in 30 years

The shareholding structures of these firms was, however, not available immediately to the Business Daily, and as such it is not clear how they will be affected by the new regulations.

“The changes require insurance brokers to be at least two-thirds (66 per cent plus) owned and controlled by Tanzanian citizens.

“This is a 100 per cent increase from the previous local participation requirement (of one third (33 per cent),” said Shamiza Ratansi, managing partner at ATZ Law Chambers, in a research note.

Source: Kenyan insurance brokers hit by Tanzania’s two-thirds rule

Iconoclastes · Jul 25, 2017

Geza Ulole, si u can now see what I was saying? The economic war being waged against the Kenyan businesses in your country.

And u were crying foul when we only partially blocked your gas and wheat accessing the Kenyan market, calling Kenyans "mean- hearted" protectionists. But yours borders on insecurity.

Captain Marvelous · Jul 25, 2017

Cicero said:
Kenyan insurance brokers operating in Tanzania will be forced to cede shareholding to locals under a new law which cut by half the ownership quota allowed for foreigners.

Fresh amendments to the Insurance Act sets the mandatory stake that must be held by Tanzanian citizens to be at least two-thirds from the initial one third or 33 per cent.

READ: Brokers want importers locked out of online portals

It is estimated that a significant chunk of Tanzania’s 124 insurance brokers are foreign-owned, with a substantial number being backed by Kenyan investors.

Some of the Nairobi-based firms selling and negotiating insurance products in Dar es Salaam include Aristocrats Insurance Brokers Ltd, Eagle Africa Insurance Brokers Ltd, MIC Global Risks, and Pacific Insurance Brokers.

Others are global insurance brokers such as AoN and JW Seagon, which have operations across the region.

READ: Insurance brokers eye first pay rise in 30 years

The shareholding structures of these firms was, however, not available immediately to the Business Daily, and as such it is not clear how they will be affected by the new regulations.

“The changes require insurance brokers to be at least two-thirds (66 per cent plus) owned and controlled by Tanzanian citizens.

“This is a 100 per cent increase from the previous local participation requirement (of one third (33 per cent),” said Shamiza Ratansi, managing partner at ATZ Law Chambers, in a research note.

Source: Kenyan insurance brokers hit by Tanzania’s two-thirds rule

sounds perfect for the locals since insurance industry is a muilti billion business sio kuwaachia wao wageni waneemeke tu bila wenyeji kufaidi...bravo

Iconoclastes · Jul 25, 2017

Captain Marvelous said:
sounds perfect for the locals since insurance industry is a muilti billion business sio kuwaachia wao wageni waneemeke tu bila wenyeji kufaidi...bravo

Sidhani hawa wageni wamewazuia kuanzisha makampuni zenu kucompete nao.

Poise · Jul 25, 2017

I said it, and soon we are going to finalize with KCB bank and Kenya Airways.

Till you respect us.

Cicero · Jul 25, 2017

Iconoclastes said:
Geza Ulole, si u can now see what I was saying? The economic war being waged against the Kenyan businesses in your country.

And u were crying foul when we only partially blocked your gas and wheat accessing the Kenyan market, calling Kenyans "mean- hearted" protectionists. But yours borders on insecurity.

How is this economic war? Kwani are you the only ones targeted au all FOREIGN operators? Tena ushukuru hamjafukuzwa altogether!
Quit complaining and play by the rules

Captain Marvelous · Jul 25, 2017

hap

Iconoclastes said:
Sidhani hawa wageni wamewazuia kuanzisha makampuni zenu kucompete nao.

Hapana Inno hawazuiwa mbali sasa umiliki wa wenyeji umeongezeka kulingana na sheria hii..

Captain Marvelous · Jul 25, 2017

Iconoclastes said:
Geza Ulole, si u can now see what I was saying? The economic war being waged against the Kenyan businesses in your country.

And u were crying foul when we only partially blocked your gas and wheat accessing the Kenyan market, calling Kenyans "mean- hearted" protectionists. But yours borders on insecurity.

This target all the players sio wa kutoka Kenya tu kaka...its sounds well for the locals kaka..kwani Kenya sheria ya umiliki wa hizi kampuni za Bima upo aje..

Captain Marvelous · Jul 25, 2017

hawa

Iconoclastes said:
Sidhani hawa wageni wamewazuia kuanzisha makampuni zenu kucompete nao.

wageni wakianzisha kampuni sheria ni asilimia 66% itamilikiwa na wenyeji...

MK254 · Jul 25, 2017

Hawa jamaa wazembe sana, yaani wameshindwa kuanzisha makampuni kwenye nchi yao sasa wamekaa kusubiri wageni

Hoshea · Jul 25, 2017

Captain Marvelous said:
This target all the players sio wa kutoka Kenya tu kaka...its sounds well for the locals kaka..kwani Kenya sheria ya umiliki wa hizi kampuni za Bima upo aje..

Nina uhakika hajui hata upo aje, hajasoma hata habari vizuri, anadhani ni wao pekee ndio walengwa, huyu Mkenya anaendeshwa na mihemuko ya kizalendo.

Iconoclastes · Jul 25, 2017

Cicero said:
How is this economic war? Kwani are you the only ones targeted au all FOREIGN operators? Tena ushukuru hamjafukuzwa altogether!
Quit complaining and play by the rules

It is no secret that the majority, vast majority in fact of such businesses are Kenyan owned or with Kenyans as the majority shareholders.
Making it seem as though this law is targeting all non- local insurance firms, is only a smoke- screen always been used by the Tanzanian govt to conceal the actual intentions.

I can give u some few examples. You used the same argument when u were deporting Kenyans, or rather foreigners working and trading there without valid documents. When u were selling the Vodacom shares, u said no foreigners- in reference to Kenyans obviously.

Scarlet Pimpernel · Jul 25, 2017

Captain Marvelous said:
sounds perfect for the locals since insurance industry is a muilti billion business sio kuwaachia wao wageni waneemeke tu bila wenyeji kufaidi...bravo

Kwani locals wamezuiwa? Foreign money and expertise is being pumped in to satisfy a big demand. You don't just dilute it.

Dhuks · Jul 25, 2017

No sensible non-Tanzanian should prioritize expansion to a xenophobic country

Poise · Jul 25, 2017

MK254 said:
Hawa jamaa wazembe sana, yaani wameshindwa kuanzisha makampuni kwenye nchi yao sasa wamekaa kusubiri wageni

Fungeni projects zenu mwende Kenya na huko Juba South Sudan.

Tanzania siyo shamba la Bibi tena.

Also, we are coming for KBC Bank and Kenya Airways.

Cicero · Jul 25, 2017

Dhuks said:
No sensible non-Tanzanian should prioritize expansion to a xenophobic country

How is this xenophobic jameni? I would love to know what Kenyan law says about foreign ownership of insurance companies.

Scarlet Pimpernel · Jul 25, 2017

Dhuks said:
No sensible non-Tanzanian should prioritize expansion to a xenophobic country

Insurance

The Insurance Act restricts the registration of insurers (Kenya). No person shall be registered as an insurer unless that person is a body corporate incorporated under the Companies Act. Insurance companies are required to have at least a third of their paid-up capital owned by citizens of the Partner States of the East African Community. Insurance brokers on the other hand are required to have at least sixty percent (60%) of their paid-up capital equally held by Citizens of the Partner States of the East African Community. There is a further requirement that at least a third of the members of board of directors or managing board of corporate bodies in the sector be Kenyan citizens.

Scarlet Pimpernel · Jul 25, 2017

Cicero said:
Kenyan insurance brokers operating in Tanzania will be forced to cede shareholding to locals under a new law which cut by half the ownership quota allowed for foreigners.

Fresh amendments to the Insurance Act sets the mandatory stake that must be held by Tanzanian citizens to be at least two-thirds from the initial one third or 33 per cent.

READ: Brokers want importers locked out of online portals

It is estimated that a significant chunk of Tanzania’s 124 insurance brokers are foreign-owned, with a substantial number being backed by Kenyan investors.

Some of the Nairobi-based firms selling and negotiating insurance products in Dar es Salaam include Aristocrats Insurance Brokers Ltd, Eagle Africa Insurance Brokers Ltd, MIC Global Risks, and Pacific Insurance Brokers.

Others are global insurance brokers such as AoN and JW Seagon, which have operations across the region.

READ: Insurance brokers eye first pay rise in 30 years

The shareholding structures of these firms was, however, not available immediately to the Business Daily, and as such it is not clear how they will be affected by the new regulations.

“The changes require insurance brokers to be at least two-thirds (66 per cent plus) owned and controlled by Tanzanian citizens.

“This is a 100 per cent increase from the previous local participation requirement (of one third (33 per cent),” said Shamiza Ratansi, managing partner at ATZ Law Chambers, in a research note.

Source: Kenyan insurance brokers hit by Tanzania’s two-thirds rule

Just researched and found out that Kenyans have the same rule....SMH. A third for Insurance companies and 60% for insurance brokers should be local

bartaizo · Jul 25, 2017

Iconoclastes said:
It is no secret that the majority, vast majority in fact of such businesses are Kenyan owned or with Kenyans as the majority shareholders.
Making it seem as though this law is targeting all non- local insurance firms, is only a smoke- screen always been used by the Tanzanian govt to conceal the actual intentions.

I can give u some few examples. You used the same argument when u were deporting Kenyans, or rather foreigners working and trading there without valid documents. When u were selling the Vodacom shares, u said no foreigners- in reference to Kenyans obviously.

Ujinga

2 Timotheo:4.2
lihubiri neno, uwe tayari, wakati ukufaao na wakati usiokufaa, karipia, kemea, na kuonya kwa uvumilivu wote na mafundisho.

Eyce · Jul 25, 2017

Iconoclastes said:
Geza Ulole, si u can now see what I was saying? The economic war being waged against the Kenyan businesses in your country.

And u were crying foul when we only partially blocked your gas and wheat accessing the Kenyan market, calling Kenyans "mean- hearted" protectionists. But yours borders on insecurity.

Bro usisahau kuwa you have been boasting bout being the leading African investors in Tanzania and I told you that any economical reform in Tanzania will hurt Kenya directly since Tanzania was used to be Kenya's dumb brother yaani easy to play with ...

Angalia in tourism tayari earnings zinaongea

angalia katika industries maana as we develop our own industrial base , z market for your industrial goods in Tz is narrowed and competition for the foreign market especially in our region is increasing leading to lower profit margins for your indegineous companies

Look on FDI , retail and real estate business growth ,look on agriculture ... Bro unless mfunge mikanda nd look for z alternatives , Kenya will always stay frustrated by Tanzania's moves

You used to call Tanzania a sleeping giant but as Tz start to awake nd really fast...guess this is the price you have to pay

Kenyan insurance brokers hit hard by Tanzania’s two-thirds rule

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