Long-Term Insurance Business Licence Fees and Charges in Kenya

Any company wishing to underwrite long-term insurance risks in Kenya — covering life assurance, annuities, pensions, group life, group credit, permanent health, and investment-linked products — must first obtain a licence from the Insurance Regulatory Authority (IRA), the statutory regulator under the Insurance Act, Cap. 487. Long-term insurance is one of the most heavily regulated classes in the country, reflecting the long-duration commitments made to policyholders and the substantial reserves required to honour those obligations.

Fees and Charges

Fee / Charge	Current Amount (KES)	Proposed Amount — Draft Regs 2025 (KES)
Licensing fee	150,000	500,000
Annual renewal fee	150,000	500,000
Late payment penalty (per day)	20,000	—

Minimum Capital Requirements

Business Class	Minimum Paid-Up Capital (KES)
Long-term insurance business	400,000,000
Long-term reinsurance business	500,000,000
Micro-insurance business	50,000,000

In addition to paid-up capital, every registered insurer must maintain a statutory deposit with the Central Bank of Kenya equivalent to 5% of total assets, held under lien in favour of the IRA under Section 32 of the Insurance Act.

Application Requirements

To qualify for a long-term insurance licence, promoters must submit a feasibility study report, certified copies of the certificate of incorporation and memorandum and articles of association, details of shareholders and directors, specimen proposal and policy forms, premium rates, an actuary's certificate confirming that premium rates and terms are sound, proposed reinsurance arrangements, and a CBK deposit certificate. All directors and senior officers must pass the IRA's fit and proper person test, and at least one-third of the board must be Kenyan citizens. Processing takes approximately 60 days per phase, subject to the completeness of the application documents.

Fee Revision Context

The draft Insurance Regulations 2025 propose the first fee revision in 30 years. The IRA notes that Kenya's current fees are significantly lower than comparable rates in Uganda and Tanzania, despite Kenya having the more developed insurance market. The Consumer Price Index has grown more than eightfold since 1995, when the fees were last set, while the number of regulated entities has grown from roughly 529 to nearly 15,000. Regulated by the Insurance Regulatory Authority (IRA) under the Insurance Act, Cap. 487, Laws of Kenya.

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