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

Tanzanian MPs during a past session in Parliament. FILE PHOTO | NMG
Tanzanian MPs during a past session in Parliament. FILE PHOTO | NMG  

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.

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.

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