NAIROBI, Kenya – A proposed amendment to Kenya’s Insurance Act could soon usher in tougher penalties against discrimination in the insurance industry, aiming to guarantee equal access to services for all Kenyans.
The Insurance (Amendment) Bill, 2025, sponsored by Senator Okong’o Omogeni, proposes steep fines and potential jail terms for individuals and companies found guilty of discriminating based on race, health, age, gender, or other personal characteristics.
Under the Bill, individuals engaging in discriminatory practices could face a fine of up to Sh5 million, a five-year prison term, or both.
Insurance companies found guilty could have their licenses revoked and a manager appointed to oversee their operations.
“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,” Omogeni stated.
He cited Article 27(4) of the Constitution, which prohibits discrimination on various grounds, and Article 43, which enshrines the right to social security.
The Bill is designed to operationalize these constitutional guarantees within the insurance sector.
The legislation also seeks to hold senior executives personally liable for discriminatory practices.
Directors and managers would have to demonstrate that they were unaware of, or had taken reasonable measures to prevent, any discrimination — otherwise, they too would face penalties.
“Where a person convicted under this section is a body corporate, the conviction shall constitute sufficient grounds for the cancellation of its registration,” the Bill reads.
This move aims to close loopholes that have historically allowed companies to avoid accountability while vulnerable groups like women, the elderly, and those with chronic illnesses face unfair exclusion from critical services.
The Bill comes at a crucial time for Kenya’s insurance industry, which is projected to reach $8.03 billion in premiums by the end of 2025.
However, concerns about exclusionary practices are rising.
In the first quarter of 2024 alone, over 500 complaints against insurers were filed, signaling the need for stronger protections.
If passed, the Insurance (Amendment) Bill would amend Cap. 487 of the Insurance Act, reinforcing Kenya’s commitment to equity and social justice across essential services.
The Bill is currently awaiting its first reading in the Senate, where it is expected to generate intense debate, particularly among industry stakeholders and advocates for consumer protection.
