The Insurance Regulatory Authority (IRA) has cautioned the public against engaging unlicensed insurance providers, warning of a surge in fraudulent activities within the sector.
The alert follows a growing number of complaints from Kenyans who have fallen victim to unscrupulous agents posing as legitimate brokers. In many cases, these agents collect premiums but fail to remit them to registered insurers, leaving clients without valid cover when claims arise.
Victims often discover the deception only after suffering losses—such as road accidents or medical emergencies—only to find their policies were never genuine.
IRA Corporate Communications and Public Relations Officer Evans Kibagendi said the Authority is concerned about the increasing number of illegal operators exploiting unsuspecting members of the public.
“We have noted with concern that some unlicensed individuals and entities are offering fake or unauthorized insurance services,” Kibagendi said during the closing of the four-day Bima Mashinani forum at Kisii Agricultural Training Centre.
He urged Kenyans to verify the licensing status of any insurance provider before making payments, emphasizing that a simple check with the regulator could prevent financial loss.
“Before you pay any premiums, confirm the provider’s registration with IRA. This step can protect you from fraud,” he added.
Kibagendi also called on the public to report suspicious activities to help curb malpractice in the industry. He noted that the Authority is working closely with the Directorate of Criminal Investigations (DCI) through its Insurance Fraud Investigation Unit to pursue offenders.
The warning comes after regulatory action that saw 20 insurance brokers lose their licences, as announced in a gazette notice dated July 18, 2025. The firms were cited for non-compliance, including failure to remit premiums and breaches of licensing conditions.
IRA Deputy Director for Corporate Communications Joanne Wanjala said the Bima Mashinani initiative seeks to improve insurance awareness at the grassroots level, particularly in areas with low uptake.
“Our goal is to ensure every Kenyan understands the value and workings of insurance,” she said, noting that misinformation and lack of knowledge remain key barriers to adoption.
Wanjala emphasized that informed consumers are less likely to fall prey to fraud and more likely to benefit from insurance products.
“Insurance should be viewed as a necessary financial safety net, not a luxury,” she said.
The forum attracted over 320 participants, including traders, farmers, teachers, transport operators, and youth and women’s groups.
Despite fraud concerns, the sector continues to grow. IRA data shows gross written premiums rose by 17.6 percent to Sh464.72 billion in the fourth quarter of 2025, up from Sh395.30 billion in a similar period in 2024.
Long-term insurance accounted for 50.7 percent of total premiums, while total industry assets grew to Sh1.08 trillion. Medical and motor insurance remained dominant in the general insurance segment.
Micro-insurance products, which generated Sh2.17 billion, are increasingly supporting low-income households and small businesses.
The Authority says the growth reflects rising confidence in insurance as both a risk management tool and a long-term investment option, even as efforts intensify to eliminate fraud in the sector.
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