The Insurance Regulatory Authority (IRA) has recently published a set of 13 draft regulations (Draft Regulations) that propose to amend existing regulations or create new regulatory frameworks for the insurance sector. These include:
- Insurance (Amendment) Regulations, 2025
- Insurance (Intermediaries) Regulations, 2025
- Insurance (Market Conduct) Guidelines, 2025
- Insurance (Index Insurance) Regulations, 2025
- Insurance (Corporate Governance) Guidelines, 2025
- Insurance (Claims Management) Guidelines, 2025
- Insurance (Reinsurance Arrangements) Guidelines, 2025
We highlight below some of the significant changes that these Draft Regulations propose to introduce once enacted.
Increased licensing fees
Among the shifts that these Draft Regulations propose is a significant increase in the licensing and annual renewal fees for licensees under the Insurance Act, Cap. 487, Laws of Kenya, as follows:
| Current Fees | Proposed Fees | |
| Insurance companies | KES 150 000 | KES 500 000 |
| Reinsurance companies | KES 250 000 | KES 750 000 |
| Insurance brokers | KES 10 000 | KES 100 000 |
| Medical Insurance providers | KES 10 000 | KES 100 000 |
| Bancassurance intermediaries | KES 20 000 | KES 200 000 |
| Insurance agents | KES 1000 | KES 5000 |
The IRA has explained that these increases are driven by the rising cost and complexity of its supervisory functions. Although the Authority acknowledges that this will raise compliance costs for licensees, it considers the adjustment necessary for effective oversight.
Revised corporate governance requirements
The IRA has proposed the draft Insurance (Corporate Governance) Guidelines, 2025 to replace the 2011 version of these guidelines, which are applicable to all insurers and reinsurers. While being largely similar to the current guidelines, the 2025 draft proposes to amend the qualification to be an “independent director” to include having less than 5% shareholding in the licensee, its parent entity or subsidiary, a prohibition on cross‑directorships or significant links with other directors (although this is not expressly defined).
Notably, the 2025 draft guidelines have omitted a current requirement for one third of board members to be Kenyan citizens. However, this provision remains in the Insurance Act and will continue to apply unless the Act is amended.
The draft Insurance (Corporate Governance) Guidelines, 2025, if enacted, will have a six-month transitional period after gazettement before they become enforceable.
New insurance business classes
The Draft Regulations have also revised the categorisation of business classes offered by insurers. In doing so, the IRA has proposed the introduction of cybersecurity and virtual assets insurance as sub-classes of general insurance in Kenya. The recognition of virtual assets insurance fits in with Kenya’s recent enactment of the Virtual Assets Services Providers Act, 2025, which creates a regulatory framework for dealing in virtual assets.
The IRA has also proposed the new Insurance (Index Insurance) Regulations, 2025, which aim to establish a formal regulatory framework for the provision of index insurance in Kenya. Index insurance is a growing product class in Kenya, particularly used so far to cover risks in the agricultural sector. The Draft Regulations intend to establish the process for approval of such products by the IRA, their minimum features and maximum claim payout periods amongst others.
Conclusion
The IRA is currently receiving comments from industry stakeholders and the public until 21 November 2025, following which the Draft Regulations may be amended to incorporate such input. At the moment, there is no timeline for their proposed enactment.
