Insurance personnel found guilty of discrimination in issuing insurance cover could face hefty penalties under a proposed new law.
The Insurance (Amendment) Bill, 2025 seeks to impose a Sh5 million fine, a five-year jail term, or both for individuals who engage in biased practices based on factors such as race, marital status, social status, or region, among others.
According to the Bill, “A person carrying out an insurance business shall not directly or indirectly refuse or fail to insure any person on the grounds of race, sex, pregnancy, marital status, health status, ethnic or social origin, colour, age, disability, religion, conscience, belief, culture, dress, language, or birth.”
Anyone found violating these provisions would be committing an offence.
For corporate offenders, the penalties are even more severe. Insurance companies found guilty of discriminatory practices could face the revocation of 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.
The Bill also provides that a corporate ‘offence’ can be attributed to any neglect on the part of a director, chief executive, principal officer, manager, secretary, or other similar officer of the company — or anyone acting in such a capacity.
The person, along with the corporate body, will be guilty of the offence unless they can prove they were unaware of the commission of the offence, or that they took reasonable steps to prevent it.
The proposed law, sponsored by Nyamira Senator Okong’o Mogeni, is currently being prepared for publication and will soon be introduced to the Senate for its first reading.
The Bill aims to amend the Insurance Act, Cap. 487, to prohibit all forms of discrimination in the insurance sector.
Senator Mogeni referred to Article 27(4) of the Constitution, which prohibits both direct and indirect discrimination on various grounds.
He added that Article 43 of the Constitution further provides that every person has the right to social security.
He emphasised that the proposed amendment aims to protect all Kenyans, particularly the elderly and individuals with chronic health conditions, ensuring they have equal access to social security through insurance services.
“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,” Mogeni stated.
Article 27 (4) of the Constitution provides that the State shall not discriminate directly or indirectly against any person on any ground, including race, sex, pregnancy, marital status, health status, ethnic or social origin, colour, age, disability, religion, conscience, belief, culture, dress, language or birth.
Article 43 of the Constitution further provides that every person has the right to social security.
The number of complaints against insurers went up over the quarter from 508 reported over the first three months of 2024.
It is expected to hit $8.03 billion in gross written premium by the end of 2025.
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