This archive report was first published on 13 December 2019.
On December 13, 2019, a significant amendment to the Insurance Act was signed into law, marking a major milestone in protecting policy holders in Kenya.
The new law empowers the Insurance Regulatory Authority (IRA) to prescribe the manner of submission of various returns, and introduces penalties for late submission, which will be payable to the Policyholders Compensation Fund.
Under the new provisions, insurers who fail to submit returns as prescribed will face a penalty of KSh200,000, with an additional KSh10,000 for each day the document remains unsubmitted after the expiry of the submission period.
The amendments come at a time when many policyholders in collapsed insurance firms are still awaiting compensation, highlighting the need for stronger regulatory measures to safeguard their interests.
