Proposed insurance bill aims to eliminate discrimination with harsh penalties
The bill seeks to make it illegal for anyone in the insurance business to refuse coverage based on factors such as race.
Kenya is taking a bold step to combat discriminatory practices in the insurance sector through the Insurance (Amendment) Bill, 2025.
The proposed law aims to impose severe penalties on both individuals and insurance companies found guilty of discrimination when issuing policies.
The bill seeks to make it illegal for anyone in the insurance business to refuse coverage based on factors such as race, marital status, pregnancy, health status, or other personal attributes.
The bill specifies that anyone found engaging in such practices would be committing an offense, with penalties that include a fine of up to Sh5 million or a five-year jail term, or both.
These penalties are intended to curb practices that disproportionately affect vulnerable groups, including women, the elderly, and people with chronic health conditions.
The bill makes it clear that such practices are considered offenses, and violators will be held accountable.
Senator Okong’o Mogeni, who sponsored the bill, emphasized the constitutional basis for the proposed changes.
"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.
He referred to Article 27(4) of the Constitution, which prohibits discrimination on grounds such as race, age, gender, and health status.
He also highlighted Article 43, which guarantees every person’s right to social security, a right the bill aims to protect by promoting equal access to insurance coverage.
The bill goes beyond individuals to hold corporate entities responsible as well.
Insurance companies found guilty of discrimination could have their licenses revoked, with the bill specifically stating that the conviction of a company is grounds for the cancellation of its registration.
“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 proposed law also holds directors, chief executives, and other senior officers of the company personally responsible for discriminatory practices unless they can prove they were unaware of the violations or took reasonable steps to prevent them.
This provision ensures that companies are not only penalized but that individuals at the top levels are also held accountable.
Complaints against insurers have been increasing, with over 500 cases reported in just the first three months of 2024.
The insurance industry is expected to generate an estimated $8.03 billion (Sh1.04 billion) in gross written premiums by the end of 2025, making it a critical area for regulation.
The Insurance (Amendment) Bill, 2025, is now being prepared for its first reading in the Senate, where it will undergo further debate.
If passed, it will amend the Insurance Act, Cap. 487, to provide stronger protection against discrimination and ensure equal treatment for all Kenyans in the insurance sector.