Consumer Protection Laws that Apply to Insurance in Kenya


There are several laws that protect all insurance consumers in Kenya. This laws ensure that the customer is protected and his/her rights are protected. Insurance customers are the most protected customers in Kenya. Some of the laws that exist are

The Constitution of Kenya

  • Article 46 talks about the consumer rights.
  • Article35 details everything one needs to know about his/her right Ito information
  • Article 47 gives the customer a fair  administrative procedure
  • Article 22 touches on enforcement of bill of rights

Consumer protection

  • Section 3 (4) on purpose of the Act:
    • Promoting fair and ethical business practices
    • Protecting consumers from improper trade practices
    • Improving consumer awareness and informed consumer choices and behavior
    • Promoting consumer confidence and empowerment

The Insurance act

  • The provisions run through the Act including:
    • Section 3 talks about mandate
    • Section 5 has details on contracts
    • Section 74 & 75 touches on rates
    • Section 76 talks about right to pay
    • Section 77 touches on default of payments
    • Section 80 is on policy documents
    • Section 87 talks about the cooling off period
    • Section 114 is on Terms and actions expected  
    • Section 120 is on winding up
    • Section 156 talks about premiums
    • Section 164 is on adverts
    • Section 179 outlines details about the Policy compensation fund(PCF)
    • Section 196A is on register
    • Section 203 touches on claims


  • One of the objectives of the Act is to protect consumers from unfair and misleading market conduct.
  • Creates the following offences
    • False and misleading representations
    • Unconscionable conduct in business practices

Other key legal frameworks that exist

  • Treating customers fairly principles
  • Unclaimed assets Act
  • The proceeds of crime and Anti-money laundering Act
  • IRA prudential guidelines
    • Corporate Governance Guidelines
    • RBA Guidance for Life Insurance Sector
    • Guidelines on Reinsurance Issued in February 2013
    • Insurance Market Conduct for Intermediaries
    • IRA Anti-Money Laundering Guidelines


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