Requirements for starting an insurance company in Kenya

An insurance company, also known as insurer, is a company that contracts to indemnify another in the event of loss or damage. The Insurance Regulatory Authority (IRA) is a statutory government agency that regulates, supervises and develops the insurance industry. It’s also mandated to register new insurance companies in Kenya. The registration requirements of an insurer are detailed in section 30 and 31 of the Insurance Act Cap 487 of the Laws of Kenya and include the following.

Requirements for registration of insurers in Kenya

1. An applicant shall fill in the prescribed form together with appendices. Click here to download the form.
2. Registration fee of Ksh 150,000 for insurance companies and Ksh 250,000 for reinsurers payable to the Insurance Regulatory Authority.
3. Certified copy of the certificate of incorporation of the company.
4. Certified copy of the Articles and Memorandum of Association of the company.
5. A certified copy of the published prospectus, if any.
6. A feasibility study report as outlined under Regulation 7 of the Insurance Regulations.
7. Paid up share capital as prescribed in the Insurance Act: as may apply under:
   • Long term insurance business of Ksh 150 million.
   • General Insurance business Ksh 300 million.
   • Reinsurance business Ksh 800 million.
8. Details of the shareholders and share holding structure of the company.
9. Curriculum Vitae of the principal officer.
10. A statement of all the classes of business the proposer intends to transact. The classes of business are prescribed in the schedules to the Insurance Act.
11. Specimen proposal and policy forms for all the classes of business the proposer intends to transact.
12. The premium rates the proposer intends to apply under each class of business during the year of registration.
13. A certificate in connection with the long term insurance business by an actuary that the premium rates terms and conditions are sound and workable.
14. A detailed statement of assets and liabilities in Kenya at the date of application.
15. Proposed reinsurance arrangements.
16. A certificate from Central Bank of Kenya specifying the amounts and details of deposits under section 32 of the Insurance Act (equivalent to 5% of the total admitted assets).
17. The proposed contract documents with Insurance Agents and Brokers.
18. A statement of how the company intends to cover its initial administrative costs.
19. The name of the company should be in order and in line with Section 190.