6 hours Ago
Nyamira County Senator Okongo Mogeni. The sponsor of the Insurance (Amendment) Bill, 2025.A new amendment to Kenya’s Insurance Act seeks to address widespread discrimination in the insurance industry by introducing heavy fines and penalties for discriminatory practices.
The Insurance (Amendment) Bill, 2025, proposes significant changes to the sector, aiming to make it illegal for insurance companies to discriminate against individuals based on factors such as race, health, age, gender, or other personal characteristics. The Bill’s primary focus is to ensure that everyone has equal access to insurance services and is not unfairly denied coverage.The proposed Bill comes with strict penalties for those involved in discriminatory actions.
Offenders could face fines of up to Sh5 million, a jail term of up to five years, or both, holding individuals in the insurance industry accountable for biased behavior, especially toward vulnerable groups such as women, the elderly, and people with chronic health conditions.Nyamira Senator Okong’o Omogeni, who sponsored the Bill, highlighted the importance of the legislation, stating, “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.”Bill Seeks Equal Access to Insurance for All KenyansHe referenced the Constitution’s Article 27(4), which prohibits discrimination based on factors such as race, age, gender, and health, as well as Article 43, which guarantees the right to social security for every individual.
The Bill seeks to align the insurance sector with these constitutional rights, fostering equality for all Kenyans.The Bill’s provisions extend beyond penalties for individuals; it also targets corporate offenders. Insurance companies found guilty of discriminatory practices could face the loss of their operating licenses.
Additionally, if a corporation is convicted, the Bill outlines that the company could lose 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. This provision aims to ensure that companies are held fully accountable for their actions.
Furthermore, the Bill holds senior executives, including directors and managers, personally liable for discriminatory practices. Unless they can prove they were unaware or took adequate steps to prevent the offense, leaders in the insurance industry cannot escape responsibility for unlawful conduct.The Bill comes at a crucial time when complaints against insurers have been steadily increasing, with more than 500 complaints reported in the first quarter of 2024 alone.
Currently, the Insurance (Amendment) Bill, 2025 is being prepared for its first reading in the Senate. If passed, the Bill will amend the Insurance Act, Cap. 487, strengthening protections against discrimination and ensuring equal access to essential social services like insurance for all Kenyans.
The post Insurance Companies in Kenya Face Heavy Penalties for Discriminatory Practices appeared first on Nairobi Wire..
