This archive report was first published on 29 July 2019.
On July 5, 2019, President Uhuru Kenyatta assented to the Insurance (Amendment) law, which has sparked a legal battle between insurance brokers and the government.
The Association of Insurance Brokers of Kenya (AIBK) has sued the National Treasury Cabinet Secretary, the Attorney-General, and the Insurance Regulatory Authority, seeking to stop the implementation of the law.
According to the association, the amendments to the bill did not balance the rights of all industry players, frustrating the government's policy of growing insurance penetration and criminalizing the handling of premiums by insurance brokers.
Through their lawyer Paul Muite, the association claims that the law will have far-reaching implications, resulting in the wiping out of the business of insurance brokerage in Kenya and jeopardizing the livelihoods of thousands of individuals.
"The implementation of the contentious law will have far-reaching implications that will result in wiping out the business on insurance brokerage in Kenya as well as jeopardise livelihoods," said Mr. Muite.
Insurance brokers and agents act as intermediaries between policyholders and insurance companies, advising buyers on products and policies available and collecting premiums.
The association alleged that the sector will be plunged into a crisis, leading to the loss of business and revenue among its members, and that at least 5,000 individuals whose livelihoods depend on them will be affected.
