An insurance broker acts as an independent intermediary between clients and insurers, providing advisory services and placing risks on behalf of the insured rather than the insurer. In Kenya, insurance brokers — including reinsurance brokers and medical insurance providers (MIPs) — must be licensed under Sections 150 to 156 of the Insurance Act, Cap. 487, and are subject to significantly more stringent requirements than agents, reflecting the fiduciary duty they owe to their clients.
Fees and Charges
| Fee / Charge | Current Amount (KES) | Proposed Amount — Draft Regs 2025 (KES) |
|---|---|---|
| Registration / licence fee | 10,000 | 100,000 |
| Annual renewal fee | 10,000 | 100,000 |
Capital and Financial Requirements
| Requirement | Amount (KES) |
|---|---|
| Minimum paid-up share capital | 1,000,000 |
| Bank guarantee (or government bond) | 3,000,000 |
| Professional indemnity insurance (minimum) | 10,000,000 |
The bank guarantee must be from a commercial bank in the IRA’s prescribed format, or a government bond of at least two years’ duration, held in favour of the Authority.
Structural and Qualifications Requirements
| Requirement | Details |
|---|---|
| Kenyan citizen shareholding | At least 60% |
| Principal Officer qualification | Degree or diploma in insurance from a recognized institution |
| Principal Officer experience | Minimum 5 years in insurance business |
| CR-12 Form | Shareholding structure of the company |
| Business plan (new applicants) | 3-year projection |
| Statement of business (renewals) | Form No. INS 151-1 |
Professional indemnity policies must expire on 31 December of the year of registration. The company name must comply with Section 190 of the Insurance Act, which prohibits names that could mislead the public into thinking the firm carries on insurance underwriting business.
Regulated by the Insurance Regulatory Authority (IRA) under the Insurance Act, Cap. 487, Laws of Kenya.