Understand insurance regulations in Kenya, your rights as a policyholder, and how to file complaints with the Insurance Regulatory Authority.
Understanding insurance regulations helps you navigate the insurance market confidently and know what protections are available to you as a policyholder in Kenya.
The IRA is Kenya's independent regulatory body responsible for overseeing the insurance industry, protecting policyholders, and ensuring market stability.
IRA Contact: info@ira.go.ke | +254 20 4996000 | Zep-Re Place, Longonot Road, Upper Hill
Only IRA-licensed insurers are authorized to offer insurance products in Kenya. Purchasing from unlicensed entities puts your money at risk with no regulatory protection.
Major categories include: General Insurance (motor, property, medical), Life & Pensions, Composite Insurers, Reinsurers, and Insurance Brokers.
The Insurance Act and IRA regulations guarantee specific rights to all insurance consumers in Kenya:
Follow this structured process to resolve disputes with your insurance provider:
If unresolved or unsatisfied with insurer's response:
The Insurance Act (Cap 487) and subsequent amendments establish the legal framework for insurance operations in Kenya:
• Third-party motor insurance (mandatory for all vehicles)
• Work injury benefits (WIBA) for employers
• Professional indemnity for certain professions
• Minimum capital: KES 600M (general), KES 600M (life)
• Solvency margins and reserves
• Investment guidelines for premiums
• Protects policyholders if insurer becomes insolvent
• Funded by levies on insurance premiums
• Managed by IRA for compensation
• Operating without a license
• Misrepresentation of policy terms
• Unfair claim denial
• Premium misappropriation by agents
Stay informed about recent regulatory updates that affect policyholders:
Protect yourself from insurance fraud by verifying your insurer before purchasing a policy:
Help protect the insurance market by reporting suspicious activities and violations:
Unlicensed Operations
Companies or agents operating without IRA license
Premium Misappropriation
Agents keeping premiums instead of remitting to insurer
Fake Policies
Fraudulent certificates or counterfeit documents
Claim Fraud
Staged accidents or exaggerated claims
IRA actively enforces regulations to protect consumers. Here are examples of regulatory actions:
IRA has suspended licenses for:
Insurers and intermediaries have been fined for:
IRA has ordered insurers to:
Regular audits and inspections ensure ongoing compliance with consumer protection standards, fair pricing practices, and ethical conduct.
A: IRA guidelines require insurers to settle claims within 30-90 days depending on complexity. Motor claims typically take 30-45 days, while life claims may take up to 90 days after documentation is complete.
A: No. Insurers must provide at least 30 days written notice before cancellation (except for non-payment of premiums). You're entitled to a refund of unused premiums on a pro-rata basis.
A: The Policyholders Compensation Fund protects you up to certain limits. IRA will facilitate transfer of policies to another insurer or compensation from the fund.
A: For cashless services, yes. However, you can use any facility and claim reimbursement, though the insurer will compensate based on their approved rates and limits.
A: IRA mediates disputes and can recommend payment if claim denial was improper. While IRA decisions aren't legally binding like court orders, insurers typically comply to maintain their licenses.
A: All insurance agents and brokers must be licensed by IRA. Request their license number and verify it on the IRA website. Licensed agents must display their certificates.
Looking for comprehensive protection? Check out these related insurance options:
Comprehensive health insurance solutions in Kenya, from basic medical cover to specialized family plans, maternity insurance, and SHA/NHIF top-ups.
Protect your family's financial future with life insurance in Kenya. From last expense insurance and funeral cover to term life and whole life policies.
Complete motor vehicle insurance coverage in Kenya - comprehensive car insurance, third party cover, and commercial vehicle protection. Get the best rates and coverage.
Explore our main insurance pillars
Comprehensive health insurance solutions in Kenya, from basic medical cover to specialized family plans, maternity insurance, and SHA/NHIF top-ups.
Protect your family's financial future with life insurance in Kenya. From last expense insurance and funeral cover to term life and whole life policies.
Complete motor vehicle insurance coverage in Kenya - comprehensive car insurance, third party cover, and commercial vehicle protection. Get the best rates and coverage.