NAIROBI (Bloomberg) — Kenya plans to raise 2.28 billion shillings ($34.4 million) selling shares in state-owned Kenya Reinsurance Corporation in an initial public offering next month, said Finance Minister Amos Kimunya yesterday.The government will sell 240 million shares at 9.5 shillings each on the Nairobi Stock Exchange from July 18, Kimunya told reporters today in the capital, Nairobi. The offer closes July 31 and the shares will begin trading on the bourse August 27.

"The good news is that after today Kenyans can start planning on how to participate in the Kenya Re IPO," Kimunya said.

Kenya is selling 40 percent of the reinsurance company as part of its plans to broaden share ownership in the country, east Africa's biggest economy. The Kenya Re share sale is the first initial public offering on the Nairobi bourse this year.

Kenya Re has assets worth 13 billion Kenya shillings and total investments worth 8.9 billion shillings, 22 percent of which is in companies that trade on the Nairobi Stock Exchange. The company is increasing its investment in equities to 30 percent, from 21 percent, and reducing its holdings in real estate from 40 percent, managing director Eunice Mbogo said on May 3.