The Insurance Regulatory Authority (IRA) has published a set of 13 draft regulations that propose to amend existing regulations or create new regulatory frameworks for the insurance sector.
Several significant changes will be introduced, according to a commentary by Ms Christina Nduba-Banja and Mr Kendall Evans, Partners, and Mr Mutugi Mutegi, Senior Associate, of the law firm Bowmans Kenya.
The draft regulations 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
New insurance business classes
The Draft Regulations aim to revise 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 aligns 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 to cover risks in the agricultural sector. The Draft Regulations intend to establish the approval process for such products by the IRA, including their minimum features and maximum claim payout periods.
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 the current requirement that one third of board members be Kenyan citizens. However, this provision remains in the Insurance Act and will continue to apply unless the Act is amended.
Increased licensing fees
Some of the proposals under the draft regulations include increasing the licensing and annual renewal fees for licensees under the insurance law. The licensees include insurers, reinsurers, brokers, medical insuranc providers, bancassurance intermediaries and agents.
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.
The period for feedback on the Draft Regulations ended on 21 November 2025.