Insurance Act

Section 1. Short title Section This Act may be cited as the Insurance Act.

Section 2. Interpretation Section 2(1) In this Act, unless the context otherwise requires— "actuary" means— (a) a Fellow of the Institute of Actuaries in England or of the Faculty of Actuaries in Scotland or of the Society of Actuaries of the United States of America; or (b) such other person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") having actuarial knowledge as the Commissioner ("the officer appointed under;") may, on the application of a member of the insurance industry ("an insurer,reinsurer,broker,agent, insurance surveyor,risk manager, loss assessor,loss adjuster and claims settling agent, whether registered under this Act or not;") , approve; "admitted asset" deleted by ActNo. 22 of 2017, s. 2(a) ; "admitted liability" deleted by ActNo. 22 of 2017, s. 2(a) ; "Advisory Board" deleted by ActNo. 11 of 2006, s. 2(a) ; "affairs" , in relation to a person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") or...

Section 3. Establishment of theAuthority Section 3(1) There is established an Authority ("the Insurance Regulatory Authority established by;") to be known as the Insurance Regulatory Authority ("the Insurance Regulatory Authority established by;") . Section 3(2)(a) suing and being sued; Section 3(2)(b) taking, purchasing or otherwise acquiring, holding, charging or disposing of movable or immovable property; Section 3(2)(c) borrowing or lending money; and Section 3(2)(d) doing or performing all other things or acts for the furtherance of its functions under the provisions of this Act, which may be lawfully done or performed by a body corporate.

Section 4. The Insurance RegulatoryAuthorityFund Section 4(1) The Authority ("the Insurance Regulatory Authority established by;") shall establish a general fund to be known as the Insurance Regulatory Authority ("the Insurance Regulatory Authority established by;") Fund, hereafter referred to as "the Fund", which shall vest in the Authority ("the Insurance Regulatory Authority established by;") . Section 4(2)(a) all proceeds of the insurance premium ("the consideration for the granting of an annuity;") levy imposed by section 197A ; Section 4(2)(b) such moneys as may accrue to or vest in the Authority ("the Insurance Regulatory Authority established by;") in the course of the exercise of its powers or the performance of its functions under this Act; Section 4(2)(c) such sums as may be payable to the Authority ("the Insurance Regulatory Authority established by;") pursuant to this Act or any other written law, or pursuant to any gift or trust; Section 4(2)(d) such sums as may be granted to the Authority ("the Insurance Regulatory Authority established by;") by the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for the National Treasury;") pursuant to subse...

Section 5. Particular duties ofCommissioner Section 5(1)(a) deleted by ActNo. 11 of 2006, s. 6(a)(i) ; Section 5(1)(b) directing insurers and reinsurers on the standardisation of contracts of compulsory insurance; Section 5(1)(c) directing an insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") or a reinsurer ("a person who carries on reinsurance business and includes a retrocessionaire;") , where he is satisfied that the wording of a particular contract of insurance ("a contract of reinsurance;") issued by the insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") or reinsurer ("a person who carries on reinsurance business and includes a retrocessionaire;") is obscure or contains ambiguous terms or terms and conditions which are unfair or oppressive to the policy -holders, to clarify, simplify, amend or delete the wording, terms or conditions, as the case may be, in respect of future contracts; Section 5(1)(d) the approval of tariffs and rates of insurance in respect of any class or classes of insurance; Section 5(1)(e) such other duties as the Board ("the Board of Directo...

Section 6.[Repealed by ActNo. 11 of 2006, s. 7.]

Section 7. Power to call for information and production of books or papers Section 7(1) The Commissioner ("the officer appointed under;") may, by notice in writing, require a member of the insurance industry ("an insurer,reinsurer,broker,agent, insurance surveyor,risk manager, loss assessor,loss adjuster and claims settling agent, whether registered under this Act or not;") to supply him with information relating to his insurance business , and that person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") shall comply with the requirement within such period after receipt of the notice as may be specified therein failing which he shall be deemed to have failed to comply with the provisions of this Act. Section 7(2) Information supplied under this section shall be certified ("certified by a principal officer to be true and correct, a true copy or a correct translation (as the case may be) by endorsement on or attached to the document to be certified;") by a principal officer ("an officer appointed under;") of the member of the insurance industry ("an...

Section 8. Examination of reinsurance treaties Section 8(1)(a) call upon an insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") to submit for his examination at his office all reinsurance treaties and other reinsurance contracts entered into by the insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") ; Section 8(1)(b) by notice in writing, require an insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") to supply him with copies of any of the documents referred to in paragraph (a) certified ("certified by a principal officer to be true and correct, a true copy or a correct translation (as the case may be) by endorsement on or attached to the document to be certified;") by a principal officer ("an officer appointed under;") of the insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") . Section 8(2)(a) to make, at the time when the renewal of that treaty or contract next becomes due, such modifications in its terms and conditions as he may specify; or Section 8(2)(...

Section 9. Directions and investigations Section 9(1)(a) an offence under this Act or default in complying with any of the provisions of this Act or any subsidiary ("a subsidiary company as defined by section 4 of the Companies Act ();") legislation made thereunder has been or is likely to be committed by a member of the insurance industry ("an insurer,reinsurer,broker,agent, insurance surveyor,risk manager, loss assessor,loss adjuster and claims settling agent, whether registered under this Act or not;") ; or Section 9(1)(a)(i) an offence under this Act or default in complying with any of the provisions of this Act or any subsidiary ("a subsidiary company as defined by section 4 of the Companies Act ();") legislation made thereunder has been or is likely to be committed by a member of the insurance industry ("an insurer,reinsurer,broker,agent, insurance surveyor,risk manager, loss assessor,loss adjuster and claims settling agent, whether registered under this Act or not;") ; or Section 9(1)(a)(ii) the affairs of any member of the insurance industry ("an insurer,reinsurer,broker,agent, insurance surveyor,risk manager, loss assessor,loss adjuster and claims settling agent, whether r...

Section 10. Particular powers ofCommissionerwith regard tolong term insurance business Section 10(1) Where an insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") carrying on long term insurance business has not issued a new policy of that category of insurance for a period of twelve months from the appointed date ("the date specified infor the coming into force of this Act;") , or from the date of issue of the last policy , whichever is later, the Commissioner ("the officer appointed under;") may, with the approval of the Board ("the Board of Directors of the Authority constituted under;") , direct the insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") to frame proposals for transfer or amalgamation of its business to or with another insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") . Section 10(2) Where an insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") fails to comply with a direction under subsection (1), or if the proposals framed by the insurer (...

Section 11. Investigations of associated persons Section 11(1) Where an investigator ("the Commissioner or an investigator appointed under;") believes on reasonable grounds that it is necessary for the purposes of an investigation under section 9 to investigate the whole or some part of the affairs of another person that is, or has at some relevant time been, associated with the person in respect of which he is appointed, he may, with the consent in writing of the Board, investigate the whole or that part of the affairs of that other person. Section 11(2) Before commencing the investigation, the investigator ("the Commissioner or an investigator appointed under;") shall, if requested, serve on the associated person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") a copy of the consent in writing of the Board ("the Board of Directors of the Authority constituted under;") . Section 11(3)(a) the first-mentioned person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters...

Section 12. Powers ofinvestigator Section 12(1)(a) give to the investigator ("the Commissioner or an investigator appointed under;") all reasonable assistance in connection with the investigation; or Section 12(1)(b) appear before the investigator ("the Commissioner or an investigator appointed under;") for examination concerning matters relevant to the investigation; or Section 12(1)(c) produce any books or documents that relate to the affairs of the person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") being investigated. Section 12(2) Where books or documents are produced to an investigator ("the Commissioner or an investigator appointed under;") under this section, the investigator ("the Commissioner or an investigator appointed under;") may take possession of them for such period as he thinks necessary for the purposes of the investigation and may make copies of and take extracts from them, but shall permit a person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of unde...

Section 13. Protection for persons complying Section A person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") who complies with a requirement of an investigator ("the Commissioner or an investigator appointed under;") under this Act shall not incur liability to any other person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") by reason only of that compliance.

Section 14. Person may be represented by an advocate Section may attend the examination; and

Section 15. Notes of examination ofperson Section 15(1) An investigator ("the Commissioner or an investigator appointed under;") may cause notes of an examination of a person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") to be recorded and read to or by that person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") and may require that person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") to sign the notes and, subject to section 12 (5), notes signed by that person may be used in evidence in proceedings under this Act against that person. Section 15(2) A copy of the notes signed by a person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") shall...

Section 16. Report ofinvestigator Section 16(1) An investigator ("the Commissioner or an investigator appointed under;") may make one or more reports in writing to the Commissioner ("the officer appointed under;") during the investigation of the whole or a part of the affairs of a person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") and shall, if so directed in writing by the Commissioner ("the officer appointed under;") , make such reports as are specified in the direction. Section 16(2)(a) a statement of the opinion of the investigator ("the Commissioner or an investigator appointed under;") in relation to the grounds for investigation and the facts on which that opinion is based and recommendations thereon; Section 16(2)(b) the question whether the person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") investigated should continue to be permitted to carry on business; Section 16(2)(b)(i) the question whether...

Section 17. Directions topersoninvestigated Section 17(1) The Commissioner ("the officer appointed under;") may, by notice in writing, require a person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") investigated to comply by such date or within such period as may be specified therein, with such directions as he considers necessary in connection with any matter arising out of a report made under section 16 . Section 17(2)(a) that the insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") shall not issue new policies or undertake liability under new contracts of insurance; Section 17(2)(b) that the insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") shall not renew existing policies; Section 17(2)(c) that the insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") shall not issue policies in respect of a class of insurance business specified in the direction or undertake liability under...

Section 18. Secrecy Section 18(1) This section applies to every person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") who is or has been the Commissioner ("the officer appointed under;") of Insurance or a member of the staff assisting the Commissioner ("the officer appointed under;") or an investigator ("the Commissioner or an investigator appointed under;") or any other person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") appointed by or assisting the Commissioner ("the officer appointed under;") . Section 18(2) Subject to this section, a person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") to whom this section applies shall not, either directly or indirectly, except in the performance of a duty under or in connection with this Act, make a record of or divulge or communica...

Section 3A. Objects and functions of theAuthority Section 3A(1)(a) ensure the effective administration, supervision, regulation and control of insurance and reinsurance business ("the business of undertaking liability to pay money to insurer or reinsurers in respect of contractual liabilities in respect of insurance business incurred by insurers or reinsurer and includes a retrocession;") in Kenya; Section 3A(1)(b) formulate and enforce standards for the conduct of insurance and reinsurance business ("the business of undertaking liability to pay money to insurer or reinsurers in respect of contractual liabilities in respect of insurance business incurred by insurers or reinsurer and includes a retrocession;") in Kenya; Section 3A(1)(c) license all persons involved in or connected with insurance business , including insurance and reinsurance companies, insurance and reinsurance intermediaries, loss adjusters and assessors, risk surveyors and valuers; Section 3A(1)(d) deleted by ActNo. 1 of 2014, s. 3 ; Section 3A(1)(e) deleted by ActNo. 1 of 2014, s. 3 ; Section 3A(1)(f) advise the Government on the national policy to be followed in order to ensure adequate insurance protection and...

Section 3AA. Assistance in investigation Section 3AA(1)(a) are enforced or administered by that regulatory body; or Section 3AA(1)(b) relate to insurance transactions regulated by that regulatory body, Section 3AA(2) For the purposes of subsection (1), the provisions of this Act shall, with such modifications as may be necessary, apply and have effect as if the contravention of the legal or regulatory requirement referred to in subsection (1) were an offence under this Act. Section 3AA(3)(a) it is desirable or expedient that the assistance requested should be provided in the interest of the public; or Section 3AA(3)(b) the assistance shall assist the regulatory body in the discharge and performance of its functions. Section 3AA(4)(a) pay the Authority ("the Insurance Regulatory Authority established by;") any of the costs and expenses incurred in providing the assistance; and Section 3AA(4)(b) be able and willing to provide reciprocal assistance within its jurisdiction in response to a similar request for assistance from Kenya. Section 3AA(5) Nothing in this section shall be construed as limiting the powers of the Authority ("the Insurance Regulatory Authority established by;") to...

Section 3B.Boardof Directors Section 3B(1)(a) a Chairperson ("the person for the time being presiding over the Board of Directors or other governing body of the member of the insurance industry;") to be appointed by the President on the recommendation of the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for the National Treasury;") ; Section 3B(1)(b) the Commissioner ("the officer appointed under;") of Insurance appointed under section 3E ; Section 3B(1)(c) the Principal Secretary in the Ministry for the time being responsible for matters relating to finance or his representative; Section 3B(1)(d) the Chief Executive Officer of the Retirement Benefits Authority ("the Insurance Regulatory Authority established by;") ; Section 3B(1)(e) the Chief Executive Officer of the Capital Markets Authority ("the Insurance Regulatory Authority established by;") ; Section 3B(1)(f) the Governor of the Central Bank of Kenya or his representative; Section 3B(1)(g) a nominee of the Insurance Institute of Kenya; and Section 3B(1)(h) four other members, not being public officers, appointed by the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for the...

Section 3C. Powers of theBoard Section 3C(1)(a) control, supervise and administer the assets of the Authority ("the Insurance Regulatory Authority established by;") in such manner and for such purposes as best promote the purpose for which the Authority ("the Insurance Regulatory Authority established by;") is established; Section 3C(1)(b) determine the provisions to be made for capital and recurrent expenditure and for the reserves of the Authority ("the Insurance Regulatory Authority established by;") ; Section 3C(1)(c) receive any grants, gifts, donations or endowments on behalf of the Authority ("the Insurance Regulatory Authority established by;") and make legitimate disbursements therefrom; Section 3C(1)(d) enter into association with such other bodies or organisations, within or outside Kenya, as it may consider desirable or appropriate and in furtherance of the purpose for which the Authority ("the Insurance Regulatory Authority established by;") is established; Section 3C(1)(e) open a banking account or banking accounts for the funds of the Authority ("the Insurance Regulatory Authority established by;") ; and Section 3C(1)(f) invest the funds of the Authority ("the Insura...

Section 3D. Remuneration ofBoardmembers Section The Authority ("the Insurance Regulatory Authority established by;") , in consultation with the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for the National Treasury;") , shall pay the members of the Board ("the Board of Directors of the Authority constituted under;") such remuneration, fees or allowances for expenses as it may determine. [Act No. 11 of 2006 , s. 4.]

Section 3E.Commissionerof Insurance Section 3E(1) There shall be a Commissioner ("the officer appointed under;") of Insurance who shall be the Chief Executive Officer of the Authority ("the Insurance Regulatory Authority established by;") and who shall be appointed by the Board ("the Board of Directors of the Authority constituted under;") , through an open and competitive process, on such terms and conditions of service as may be determined by the Board ("the Board of Directors of the Authority constituted under;") in the instrument of appointment. Section 3E(2) The Commissioner ("the officer appointed under;") shall be an ex officio member of the Board ("the Board of Directors of the Authority constituted under;") but shall have no right to vote at any meeting of the Board ("the Board of Directors of the Authority constituted under;") . Section 3E(3) The Commissioner ("the officer appointed under;") shall, subject to the directions of the Board ("the Board of Directors of the Authority constituted under;") , be responsible for the day-to-day management of the affairs of the Authority ("the Insurance Regulatory Authority established by;") . Section 3E(4)(a) has satisfied the requi...

Section 3F. Appointment of Secretary and other staff Section 3F(1) The Board ("the Board of Directors of the Authority constituted under;") shall appoint a Secretary to the Board ("the Board of Directors of the Authority constituted under;") on such terms and conditions of service as it may determine. Section 3F(2) The Board ("the Board of Directors of the Authority constituted under;") may appoint such officers or servants as are necessary for the proper discharge of the functions of the Authority ("the Insurance Regulatory Authority established by;") under this Act or any other written law, upon such terms and conditions of service as it may determine. [Act No. 11 of 2006 , s. 4.]

Section 3G. Common seal of theAuthority Section 3G(1) The common seal of the Authority ("the Insurance Regulatory Authority established by;") shall be kept in such custody as the Board ("the Board of Directors of the Authority constituted under;") may direct, and shall not be used except on the order of the Board ("the Board of Directors of the Authority constituted under;") . Section 3G(2) The common seal of the Authority ("the Insurance Regulatory Authority established by;") , when affixed to a document ("accounts, deeds, letters, writings, books and any other records of information, however compiled, recorded or stored and whether in written or printed form, on microfilm or in any other form;") and duly authenticated, shall be judicially and officially noticed, and, unless and until the contrary is proved, any necessary order or authorisation by the Board ("the Board of Directors of the Authority constituted under;") under this section shall be presumed to have been duly given. [Act No. 11 of 2006 , s. 4.]

Section 4A. Financial year and annual estimates Section 4A(1) The financial year ("the calendar year;") of the Authority ("the Insurance Regulatory Authority established by;") shall be the period of twelve months ending on the thirtieth of June in each year. Section 4A(2) At least four months before the commencement of each financial year ("the calendar year;") , the Board ("the Board of Directors of the Authority constituted under;") shall prepare estimates of revenue and expenditure of the Authority ("the Insurance Regulatory Authority established by;") for that year. Section 4A(3)(a) the payment of salaries, allowances and other charges in respect of the staff of the Authority ("the Insurance Regulatory Authority established by;") ; Section 4A(3)(b) the payment of pensions, gratuities and other charges in respect of the retirement benefits which are payable out of the funds of the Authority ("the Insurance Regulatory Authority established by;") ; Section 4A(3)(c) the proper maintenance of the buildings and grounds of the Authority ("the Insurance Regulatory Authority established by;") ; Section 4A(3)(d) the maintenance, repair and replacement of the equipment and other property...

Section 4B. Accounts and audit Section 4B(1) The Authority ("the Insurance Regulatory Authority established by;") shall cause to be kept all proper books and records of account of the income, expenditure and assets of the Authority ("the Insurance Regulatory Authority established by;") . Section 4B(2)(a) a statement of income and expenditure during that year; and Section 4B(2)(b) a statement of the assets and liabilities of the Authority ("the Insurance Regulatory Authority established by;") of the last day of that year. Section 4B(3) The accounts of the Authority ("the Insurance Regulatory Authority established by;") shall be audited and reported upon in accordance with the Public Audit Act ( Cap. 412B ). [Act No. 11 of 2006 .]

Section 4C. Supersession Section Where there is a conflict between the provisions of this Act and the provisions of any written law with regard to the powers or functions of the Board ("the Board of Directors of the Authority constituted under;") or the Authority ("the Insurance Regulatory Authority established by;") under this Act, the provisions of this Act shall prevail. [Act No. 11 of 2006 , s. 5.]

Section 5A. Powers of theCommissioneron group-wide supervision Section 5A(1) The Commissioner ("the officer appointed under;") may direct any member of the group to provide any information necessary for effective groupwide supervision. Section 5A(2) In the event of any breach or failure to comply with the directives of the Commissioner ("the officer appointed under;") or safeguard the interests of the policyholders, the Commissioner ("the officer appointed under;") shall impose any of the sanctions provided in the Act on the holding company or any member of the group. [Act No. 11 of 2019 , s. 3.]

Section 19. Only licensed persons to carry oninsurance business Section 19(1)(a) in Kenya (whether in respect of Kenya insurance or reinsurance business ("the business of undertaking liability to pay money to insurer or reinsurers in respect of contractual liabilities in respect of insurance business incurred by insurers or reinsurer and includes a retrocession;") or otherwise); or Section 19(1)(b) outside Kenya in respect of Kenya business , except Kenya business that is solely reinsurance business ("the business of undertaking liability to pay money to insurer or reinsurers in respect of contractual liabilities in respect of insurance business incurred by insurers or reinsurer and includes a retrocession;") . Section 19(2) A person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") resident in Kenya or an association of persons or body corporate established in Kenya who or which carries on insurance business in any part of the world other than Kenya is, for the purposes of this Act, taken to be an insurer ("a person, registered under this Act, who...

Section 20. Placing of risks with insurers and reinsurers not licensed under this Act Section 20(1) No insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") , broker ("an intermediary involved with the placing of insurance business with an insurer or reinsurer for or in expectation of payment by way of brokerage commission for or on behalf of an insurer, policyholder or proposer for insurance or reinsurance and includes a medical insurance provider;") , agent ("a person, not being a salaried employee of an insurer who, in consideration of a commission, solicits or procures insurance business for an insurer or broker;") or other person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") shall directly or indirectly place any Kenya business other than reinsurance business ("the business of undertaking liability to pay money to insurer or reinsurers in respect of contractual liabilities in respect of insurance business incurred by insurers or reinsurer and includes a retrocession;") with an insurer (...

Section 21.[Repealed by ActNo. 19 of 2015, s. 36.]

Section 22. Prohibition oflicensingof certain persons Section the person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") is a body corporate licensed under the Companies Act ( Cap. 486 ); and

Section 23. Minimum capital requirements and holding by Kenya citizens Section 23(1) No person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") shall be licensed as an insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") unless he meets the minimum capital requirements specified in the Second Schedule. Section 23(2) The Authority ("the Insurance Regulatory Authority established by;") may, by order published in the Gazette , amend the Second Schedule. Section 23(3) Every order made under this section shall be laid before the National Assembly without unreasonable delay and unless a resolution approving the order is passed by the Assembly within twenty days on which it next sits after the order is so laid, it shall thenceforth be void by without prejudice to anything previously done thereunder or to the issuing of a new order. Section 23(3A)(a) a directive requiring the insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") to increase its pa...

Section 24.[Repealed by ActNo. 22 of 2017, s. 5.]

Section 25. Requirements as to capital structure and voting rights Section 25(1)(a) in the case of a new company, ordinary shares each of which has a single face value with voting rights and shall be irredeemable, and non-cumulative preference shares; and Section 25(1)(a)(i) in the case of a new company, ordinary shares each of which has a single face value with voting rights and shall be irredeemable, and non-cumulative preference shares; and Section 25(1)(a)(ii) in the case of existing insurers, in addition to the capital in subparagraph (1), subordinated loans as may be approved by the Authority ("the Insurance Regulatory Authority established by;") , share premiums, reserves and any other form of capital as may be determined by the Authority ("the Insurance Regulatory Authority established by;") from time to time. Section 25(1)(b) that, except during any period not exceeding one year allowed by the company for payment of calls on shares, the paid up amount is the same for all shares, whether existing or new: Section 25(1A) The capital provided under subsection (1)(a) shall not rank in priority to policyholders' interest at the time of liquidation. Section 25(2) Notwithstanding...

Section 26. Provisions relating to carrying on of both long term andgeneral insurance business Section 26(1) A person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") licensed as an insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") under this Act shall be entitled to carry on only the class or classes of insurance business for which he has been licensed. Section 26(2) In the case of an insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") licensed to carry on both long term insurance business and general insurance business ("insurance business of any class or classes not being long term insurance business;") , the assets of the statutory funds established under section 45 in respect of long term insurance business shall be as absolutely the security of the policy-holders of the long term insurance business as though the statutory funds belonged to an insurer carrying on no other business than long term insurance business and shall not b...

Section 27. One-third of boards to be citizens of Kenya Section A person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") being a body corporate incorporated in Kenya with or without a share capital shall not be licensed and if licensed shall have his license cancelled, if at least one third of the members of his board of directors or managing board are not citizens of Kenya. [Act No. 12 of 1994 , s. 6, Act No. 22 of 2017 , s. 6, Act No. 10 of 2023 , Sch.]

Section 28.[Repealed by ActNo. 22 of 2017, s. 7.]

Section 29. Appropriate reinsurance arrangements Section 29(1) Subject to subsection (3), no person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") shall be registered under section 31 except a person who has re-insurance strategies and arrangements, being strategies and arrangements approved by the Commissioner, for insurance of liabilities in respect of which persons, property or interests are, or are to be, insured by the insurer in the course of carrying on insurance business. Section 29(2) The Commissioner ("the officer appointed under;") shall not approve arrangements strategies or for reinsurance made or proposed to be made unless the amount of premium ("the consideration for the granting of an annuity;") and commission to be paid or the manner in which the amount of premium ("the consideration for the granting of an annuity;") and commission are to be ascertained are specified in the contract of reinsurance. Section 29(3) The Commissioner ("the officer appointed under;") shall not approve arrangements strategies or for reinsurance where, i...

Section 30. Application for license Section a copy of the memorandum of association or other instrument or document ("accounts, deeds, letters, writings, books and any other records of information, however compiled, recorded or stored and whether in written or printed form, on microfilm or in any other form;") by which the applicant ("a person applying for license, renewal of license or alteration of license under this Act;") is constituted;

Section 31. Licensing Section 31(1)(a) the applicant ("a person applying for license, renewal of license or alteration of license under this Act;") has the share capital and assets, as the case may be, required by sections 22 and 23 ; Section 31(1)(b) the deposit required by section 32 has been made; Section 31(1)(c) the applicant ("a person applying for license, renewal of license or alteration of license under this Act;") has adequate reinsurance arrangements or has been granted an exemption under section 29 ; Section 31(1)(d) the applicant ("a person applying for license, renewal of license or alteration of license under this Act;") has adequate reserves and the methods of calculating the reserves are satisfactory; Section 31(1)(e) the applicant ("a person applying for license, renewal of license or alteration of license under this Act;") has adequate assets in Kenya; Section 31(1)(f) the volume of business which is likely to be available to, and the earning prospects of, the applicant ("a person applying for license, renewal of license or alteration of license under this Act;") are adequate; Section 31(1)(g) the applicant ("a person applying for license, renewal of license or a...

Section 19A.Takafulinsurance business Section 19A(1) A person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") shall not undertake takaful insurance business unless that person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") is licensed under this Act. Section 19A(2) The Cabinet Secretary ("the Cabinet Secretary for the time being responsible for the National Treasury;") may, after consultation with the Authority ("the Insurance Regulatory Authority established by;") , make Regulations providing for the licensing and supervision by the Authority ("the Insurance Regulatory Authority established by;") of persons carrying on takaful insurance business . [Act No. 50 of 2016 , s. 3.]

Section 21A. Closed fund business Section 21A(1) In this section, "closed fund business" means the continuance of insurance business for the purpose of maintaining, without renewal, any policy or contract of insurance ("a contract of reinsurance;") issued before the appointed date ("the date specified infor the coming into force of this Act;") . Section 21A(2) Subject to sections 10 and 123 (1)(b), an insurer may carry on closed fund business without registration under section 19 . Section 21A(3) Where the policy or contract of insurance ("a contract of reinsurance;") remains unpaid or undischarged, all the provisions of this Act shall apply to that insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") unless the Cabinet Secretary ("the Cabinet Secretary for the time being responsible for the National Treasury;") , in writing, specifically exempts the insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") from any of the provisions of this Act. Section 21A(4) The Commissioner ("the officer appointed under;") may, by notice in writing served on the insurer ("a person, registe...

Section 27A. Qualifications of board members Section the Board ("the Board of Directors of the Authority constituted under;") of Directors or managing board of such person ("a company, corporate body (whether incorporated by or under statute or statutory authority), association, association of underwriters, fund, natural person, partnership and scheme;") comprises at least five members; and

Section 30A. Opening of a branch Section 30A(1) An insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") licensed under this Act wishing to open a branch or a new place of business in Kenya, or to change the location of a branch, or an existing place of business, shall apply to the Authority ("the Insurance Regulatory Authority established by;") for approval to do so. Section 30A(2)(a) the history and financial condition of the insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") ; Section 30A(2)(b) the adequacy of the capital base and the structure of the insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") ; Section 30A(2)(c) the viability and earning prospects of the branch; and Section 30A(2)(d) such other matter as may have a bearing on the insurer ("a person, registered under this Act, who carries on insurance business and includes a reinsurer;") or the proposed branch. Section 30A(3) There shall be payable, in respect of every application under subsection (1), a fee of twenty thousand shillings. Section 30A(4)...

Section 32. Deposits Section 32(1)(a) where the application is in respect of long term insurance business , a sum of five million shillings or five percentum of the total assets, whichever is higher; Section 32(1)(b) where the application is in respect of general insurance business ("insurance business of any class or classes not being long term insurance business;") , a sum of five million shillings or five percentum of the total assets, whichever is higher; Section 32(1)(c) deleted by ActNo. 7 of 2002, s. 54. Section 32(2) Where an applicant ("a person applying for license, renewal of license or alteration of license under this Act;") under subsection (1) was carrying on insurance business immediately prior to the appointed date ("the date specified infor the coming into force of this Act;") he may deposit with the Bank in Kenya Government securities ("securities charged on the revenue of the Government or guaranteed fully as regards principal and interest by the Government;") a sum of one hundred and fifty thousand shillings in respect of long term business and a sum of fifty thousand shillings in respect of general business; and if the applicant ("a person applying for license,...

Section 33. Return of deposits if unlicensed Section 33(1) A deposit made under section 32 shall be returned by the Bank if the application for license as an insurer is not approved by the Board. Section 33(2) Subject to section 40 (2), no deposit made in respect of a class of insurance business shall be refunded so long as the insurer carries on that business. [Act No. 12 of 1987 , s. 11, Act No. 11 of 2006 , s. 13, Act No. 10 of 2023 , Sch.]

Section 34. Deposits to be kept by Bank on behalf ofinsurer Section Where the Board ("the Board of Directors of the Authority constituted under;") approves an application for a license under section 31 , a deposit made under section 32 shall be held by the Bank on behalf of the insurer and any interest due and collected by the Bank on a deposit shall be paid to the insurer. [Act No. 12 of 1987 , s. 11, Act No. 19 of 2015 , s. 44, Act No. 11 of 2019 , s. 6, Act No. 10 of 2023 , Sch.]