This archive report was first published on 5 January 2022.
On January 6, 2022, the High Court in Kenya made a significant ruling regarding the planned increase in car insurance premiums. The court, led by Justice Anthony Mrima, declined to suspend the 50% hike, which was set to take effect in January.
According to the Kenya Human Rights Commission (KHRC), the planned increase is illegal because it was implemented without public participation. The commission argued that the Insurance Regulatory Authority (IRA) failed to protect the public and policy holders from the increase.
Lawyer Kelly Malenya, representing the KHRC, stated that several insurance companies had announced a 50% increase in premiums for motor-vehicle comprehensive cover. He also noted that some underwriters would no longer offer comprehensive insurance for vehicles older than 12 years or valued at less than Sh600,000.
The KHRC is seeking a declaration that the increase in premiums without public participation is illegal, null, and void. The commission argued that the increase is discriminatory, unjustified, and illegal, and that it violates consumer rights.
Justice Mrima certified the case as urgent and directed the parties to appear for directions next week. The court's decision has significant implications for the insurance industry in Kenya and highlights the need for public participation in regulatory decisions.
