New Bill seeks to penalise biased insurers with Sh5 million fine, jail term or de-registration
The penalties are intended to ensure that individuals in the insurance industry are held accountable for biased behaviour, especially toward vulnerable groups such as women, the elderly, and those with chronic health conditions.
A proposed amendment to Kenya’s Insurance Act seeks to tackle discrimination in the insurance sector by introducing hefty fines and penalties.
The Insurance (Amendment) Bill, 2025, is set to bring about major changes by making it illegal for insurance providers to discriminate based on race, health, age, gender, or other personal characteristics.
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The Bill’s primary goal is to ensure all individuals have equal access to insurance services, with no one being unfairly excluded or denied coverage.
The Bill specifies that anyone engaging in discriminatory practices could face penalties that include a fine of up to Sh5 million or a five-year jail term, or both.
This is intended to ensure that individuals in the insurance industry are held accountable for biased behaviour, especially toward vulnerable groups such as women, the elderly, and those with chronic health conditions. The Bill emphasises that such practices are illegal, and violators will face serious consequences.
“The Bill seeks to ensure that citizens of Kenya, including older members of society and those with chronic health conditions, enjoy social security and are not discriminated against,” Senator Okong’o Omogeni, who sponsored it, stated.
He pointed to Article 27(4) of the Constitution, which prohibits discrimination on various grounds, including race, age, gender, and health status.
He also referred to Article 43, which guarantees every person’s right to social security. The Bill is designed to protect these rights by promoting equality in the insurance sector.
In addition to penalties for individuals, the Bill also targets corporate offenders. Insurance companies found guilty of discriminatory practices could lose their operating licenses.
“Where a person convicted under this section is a body corporate, in addition to any other penalty imposed under this section, the conviction shall constitute sufficient grounds for the cancellation of its registration and the appointment of a manager,” the Bill states. This provision seeks to hold companies fully accountable for their actions.
The Bill further holds senior executives, including directors and managers, personally liable for discriminatory practices unless they can prove they were unaware of the offense or took sufficient steps to prevent it. This ensures that those in positions of power within insurance companies cannot escape responsibility.
With the insurance sector expected to reach $8.03 billion in premiums by the end of 2025, the Bill comes at a crucial time as the number of complaints against insurers continues to rise. In the first quarter of 2024 alone, over 500 complaints were reported, signalling the need for stronger regulation and oversight.
The Insurance (Amendment) Bill, 2025, is currently being prepared for its first reading in the Senate. If passed, it will amend the Insurance Act, Cap. 487, to provide more robust protections against discriminatory practices, ensuring that all Kenyans have equal access to essential social services like insurance.
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