Lawyer seeks to block IRA directive on 3 insurers

A High Court petition has been filed by Advocate Christopher Njoroge seeking legal protection for insurance policies after three companies were placed under statutory management by the Insurance Regulatory Authority (IRA).

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Statutory management is a regulatory measure used to place financial institutions under temporary supervision by a government-appointed manager, usually when they are deemed to be in financial distress or mismanagement.

The case, filed at Milimani Law Courts, challenges the regulator’s recent public notices advising policyholders to immediately seek alternative covers following the placement of Trident Insurance Company Ltd, KUSCCO Mutual Assurance Ltd, and Corporate Insurance Co. Ltd under statutory management.

According to the petition, the decision by the IRA to invalidate existing insurance policies was arbitrary, unconstitutional, and exposed policyholders to potential financial loss.

"That the decision by the first respondent (IRA) to invalidate the existing insurance policies of the affected companies affects the Petitioner directly and millions of other policyholders," he states in his documents.

Njoroge claims that he only became aware of the development on the evening of March 13, 2026, when traffic police stopped him, alleging that he was driving without valid insurance.

At the time, he said he had a valid policy with Trident Insurance Company Ltd and had not received prior communication from either the insurer or the regulator explaining why his policy had been cancelled.

In the petition, Njoroge argues that the regulator acted beyond its authority, allegedly interfering with private contracts between insurers and policyholders.

He further contends that the IRA has a statutory duty to regulate insurance companies and protect the interests of policyholders, a responsibility, he argues, was violated by allowing the companies to continue collecting premiums while simultaneously directing policyholders to seek alternative coverage.

The petition seeks urgent court intervention, requesting that the matter be certified as extremely urgent.

Njoroge also asks for an interim conservatory order restraining the IRA and the insurers from treating policies issued before 10th March 2026 as invalid.

Njoroge argues that the regulator’s directive has not only threatened his property rights but also contravened his economic, social, and consumer rights, including the right to fair administrative action under the Constitution of Kenya.

He wants the court to award him general damages for the alleged violation of his rights.

The case also names the Attorney General and the Inspector General of the National Police Service as respondents, highlighting that enforcement actions by traffic police contributed to the challenges faced by policyholders in securing coverage.

The petition also asks the court to declare that the affected insurance policies remain valid and enforceable, and to halt any actions by the regulator or insurers that would undermine these contracts.

"A declaration that the Insurance Policies issued by Trident Insurance Company Ltd, Kuscco Mutual Assurance Ltd., and Corporate Insurance Company Ltd. held by the policyholders as of 10th March, 2026 remain valid subsisting and legally binding contracts of insurance until their expiry or until a formal order for winding up of the said insurance companies is issued by a court of competent jurisdiction," he states in reliefs sought.

Directions issued by High Court Judge Lawrence Mugambi set timelines for service of the petition, responses, and rejoinders, with further directions scheduled for April 13, 2026.