Regional based re-insurer Kenya-Re has projected a Ksh.1 billion revenue hit from increased claims and rebates on premiums as businesses globally seek to negotiate their contracts with underwriters and re-insurers.

According to Kenya Re Managing Director  Mr. Jadiah Mwarania, the five per cent hit will be ‘the worst case scenario’ for the corporation in the wake of anticipated business losses occasioned by the pandemic.

The National Assembly Budget and Appropriations Committee (BAC) has proposed ammendments to the 2020/21 expenditure estimates that will see a cumulative Ksh.49.6 billion rise in this year’s budget.

According to data from its vote on the estimates presented to the floor of the house on Thursday, gross spending by the national government is expected to increase by Ksh.78 billion, a figure that later shrinks by Ksh.28.4 billion after the exclusion of appropriations to the Nairobi Metropolitan Services (NMS).

Kenya is now the third-largest economy in Sub-Saharan Africa after surpassing Angola.