Commissioner of Insurance Godfrey Kiptum warned that fraud cases are damaging the reputation of genuine insurance brokers and companies and that the trust deficit is blamed for low market penetration.
Speaking at the Association of Insurance Brokers of Kenya’s 20th annual regional conference in Mombasa on Thursday, Kiptum gave an example of a scheme where fraudsters demanded USD600,000 (about KSh77.9 million) for a performance bond and then issued the bond in the name of a non-existent insurance company, with police investigations ongoing.
He said several insurance brokers and agents have been involved in such fraud, causing clients to lose millions of shillings, and urged brokers to report any conmanship regardless of who is involved.
Kiptum added that some individuals had already been prosecuted, their licences cancelled, and that the Insurance Regulatory Authority will soon publish a comprehensive list of those prosecuted.
He also clarified that the law permits digital distribution of insurance products, provided brokers are licensed by the authority and hold valid practising certificates from the Insurance Institute of Kenya.
AIBK chairman John Lagat noted that brokers currently control less than 35 per cent of gross written premiums and described the trust gap as both a challenge and an opportunity for growth, urging the development of solutions that meet changing client needs.
Lagat said the association will work with the IRA to sensise the public on using licensed brokers and insurers and highlighted a recent government directive that all marine cargo destined for Kenya be insured locally to retain premiums.
Nation Media Group managing director and CEO Geoffrey Odundo, the conference keynote speaker, said low penetration, protection gaps, affordability constraints and fragile trust must be addressed quickly and called for greater use of technology, artificial intelligence and digital platforms.
Odundo cited the latest IRA statistics showing overall insurance penetration at 2.63 per cent for 2025/2026 and gross direct premiums rising 16.5 per cent to KSh466.58 billion from KSh400.59 billion.
Insurance Institute of Kenya chairman Peter Kagia said the institute will register all professionals, reinforce continuing professional development and discipline, and introduce a new competency framework covering climate, cyber security and digital transformation.
The two-day conference, held under the theme “Perfect Vision: Building Trust, Inspiring Courage and Defining the Next Chapter,” brought together brokers, insurers, reinsurers, regulators, policymakers, technology providers and other stakeholders to discuss the state of the industry and future opportunities.
