Kenya’s insurers, reinsurers, and intermediaries could soon pay more for annual license renewals as the Insurance Regulatory Authority (IRA) moves to raise regulatory fees for the first time in 30 years.
Under the proposed insurance regulations and guidelines, the license fees and annual operating fees for insurance and reinsurance companies will increase by 3.3 times and 3 times, respectively.
The draft also proposes increasing the annual fees for intermediaries such as agents, brokers, and risk assessors by up to 10 times.
IRA Hikes License and Annual Fees for Insurers, Reinsurers, and Intermediaries
According to the IRA, the proposed regulations aim to strengthen the insurance legal framework in Kenya by addressing evolving market needs, the introduction of complex insurance products, rapid technological changes, and harmonization with international best practices.
“Also, in view of the Government’s policy to enhance digitization and efficiency in service delivery, it is necessary to increase the license fees payable under the Insurance Act to enable automation and charge services in line with the current market indices,” IRA said.
“To reflect the increased cost of regulatory oversight and the need to support the Authority’s expanded role in supervising the insurance industry, the regulations propose revision of the annual and license fees for insurers and reinsurers as follows.”
IRA proposes raising insurers’ licensing fees to Ksh 500,000 from Ksh 150,000 and reinsurers’ to Ksh 750,000 from Ksh 500,000.
According to the proposed structure, the licensing fee for insurance companies will rise from Ksh 150,000 to Ksh 500,000, while reinsurance companies will see their fees jump from Ksh 250,000 to Ksh 750,000.
The annual renewal fees for these entities have also been adjusted to match the new licensing rates, meaning insurers will now pay Ksh 500,000 annually, up from Ksh 150,000, and reinsurers will pay Ksh 750,000, up from Ksh 250,000.
However, micro-insurance companies have been spared from the changes, with their fees maintained at Ksh 150,000.
License and Annual Fees for Insurance Entities
| Regulated Entity | Current Fees (Ksh) | Proposed Fees (Ksh) |
|---|---|---|
| Insurance Companies | 150,000 | 500,000 |
| Reinsurance Companies | 250,000 | 750,000 |
| Micro-insurance Companies | 150,000 | 150,000 (*no change) |
Annual Fees
| Regulated Entity | Current Fees (Ksh) | Proposed Fees (Ksh) |
|---|---|---|
| Insurance Companies | 150,000 | 500,000 |
| Reinsurance Companies | 250,000 | 750,000 |
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The proposed regulations also seek to revise the annual license fees payable by intermediaries and service providers.
IRA said this will reflect the increased cost of supervision and regulation of the insurance intermediary businesses, which is increasingly being undertaken through digital platforms.
Under the new structure, insurance brokers and medical insurance providers will see their annual fees rise tenfold — from Ksh 10,000 to Ksh 100,000.
Bancassurance intermediaries will face a similar increase, from Ksh 20,000 to Ksh 200,000.
Insurance agents will now pay Ksh 5,000, up from Ksh 1,000, while corporate insurance agents will see their fees increase from Ksh 1,000 to Ksh 10,000.
Other regulated professionals in the insurance value chain — including risk managers, motor assessors, insurance investigators, loss adjusters, insurance surveyors, and claims settling agents — will all face a uniform increase in fees from Ksh 3,000 to Ksh 30,000.
Revised License Fees for Insurance Intermediaries and Professionals
| Category | Current Fees (Ksh) | Revised Fees (Ksh) |
|---|---|---|
| Insurance Broker | 10,000 | 100,000 |
| Medical Insurance Provider | 10,000 | 100,000 |
| Bancassurance Intermediary | 20,000 | 200,000 |
| Insurance Agent | 1,000 | 5,000 |
| Corporate Insurance Agent | 1,000 | 10,000 |
| Risk Manager | 3,000 | 30,000 |
| Motor Assessor | 3,000 | 30,000 |
| Insurance Investigator | 3,000 | 30,000 |
| Loss Adjuster | 3,000 | 30,000 |
| Insurance Surveyor | 3,000 | 30,000 |
| Claims Settling Agent | 3,000 | 30,000 |
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The National Treasury, in its assessment report, said the adjustment — the first since 1995 — reflects both inflation and the expanded scope of the IRA’s supervisory mandate.
It noted that the Consumer Price Index has grown more than eightfold over that period, while the number of regulated entities has increased from about 529 to nearly 15,000.
“The current license fees for insurance companies and intermediaries were last revised in 1995,” Treasury says in the assessment report.
“Since then, the size, complexity, and risk profile of the insurance industry have grown exponentially, requiring substantial resources to effectively discharge the Authority’s mandate.”
According to the Treasury, a regional comparison shows that Kenya’s current license fees are significantly lower than those in Uganda and Tanzania, despite Kenya’s more developed market.
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