IRA suspends liaison offices for new entrants

Insurance Regulatory Authority CEO Sammy Makove at a past event.

NAIROBI: New insurance companies joining the Kenyan market have a new set of rules and regulations to follow. The Insurance Regulatory Authority (IRA) boss Sammy Makove has announced that the authority will not be providing liaison offices to newcomers as the norm until a legal framework is drafted, approved and adopted. “We have decided to hold on issuance of liaisons for new insurance companies until we come up with a legal framework. New companies should therefore just register legally as per the law,” said Makove. New businesses will therefore have to adhere to section 30 and 31 of the insurance Act Cap 487 that has outlined some of the requirements. These include a paid up share capital as prescribed in the Insurance Act that include Sh150 million for long term insurance business, Sh300 million for General Insurance business and Sh800 million for Reinsurance business. Also, investors are required to obtain a certificate from Central Bank of Kenya specifying the amounts and details of deposits under section 32 of the Insurance Act equivalent to 5 percent of the total admitted assets. A statement of how the company intends to cover its initial administrative costs is also mandatory. The IRA boss was speaking during the debut entry of Togolese insurance firm CICA-Re in the Kenyan market.