• About
  • Advertise
  • Privacy & Policy
  • Contact
Kenyan Business Feed
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business
No Result
View All Result
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business
No Result
View All Result
Kenyan Business Feed
No Result
View All Result
Home News

Uhuru declines to sign insurance bill over cash clause

Kenyan Business Feed by Kenyan Business Feed
Uhuru declines to sign insurance bill over cash clause
Share on FacebookShare on Twitter

Table of Contents

Toggle
        • Economy
  • Uhuru declines to sign insurance bill over cash clause
Economy

Uhuru declines to sign insurance bill over cash clause

Thursday, June 6, 2019 20:43


By CONSTANT MUNDA

 Uhuru Kenyatta
President Uhuru Kenyatta. FILE PHOTO | NMG 

President Uhuru Kenyatta has declined to sign into law changes to the insurance Act that allowed brokers and agents to continue receiving cash from policyholders on behalf of insurers.

MPs had approved a Bill that allowed brokers to receive premiums but forward the cash to insurers within 14 days.

However, the President sided with the Treasury in denying brokers the responsibility of handling premiums and want MPs to review the Bill to accommodate his views,

“An intermediary shall not receive any premiums on behalf of an insurer,” read part of President Kenyatta memo to MPs, adding that those in breach face a penalty of 20 per cent of the unremitted premium.

The memo will automatically become law if MPs do not revise the Bill to include the views.

But the National Assembly can turn down Mr Kenyatta’s proposal if two-thirds of the 290 MPs or 233 of the members vote against his views.

The original Bill, approved on February 28, sought to lock out intermediaries such as brokers and agents from collecting premiums from policyholders on behalf of insurers.

It was fronted by the Treasury last July through National Assembly’s Finance Committee chairman Joseph Limo as part of the reforms aimed at ensuring prompt processing and payment of claims.

Lawmakers, however, replaced the clause seeking to bar intermediaries from collecting premiums with one that allowed them to remit the cash within 14 days.

The amendment followed protests from the intermediaries under Association of Insurance Brokers of Kenya, their umbrella body.

Rogue brokers and agents have come under fire for diverting the premiums to conduct other businesses, leading to late remittances to insurance companies. This has resulted in some underwriters refusing to honour claims.

“The premium is the consideration of the insurance contract and, if not remitted, shall affect the validity of the contract,” Mr Kenyatta says in the May 23 memorandum to the MPs.


Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]
Kenyan Business Feed

Kenyan Business Feed

Recommended.

AFG Wealth Kenya Limited licensed as an Investment Adviser

May 15, 2019

Ashden announces shortlisted organisations for 2019 awards

May 23, 2019

Subscribe.

Trending.

Co-op Bank Branches in Nairobi and Their Contacts

March 3, 2025
Co-operative Bank Subsidiaries

Co-operative Bank Subsidiaries Shine with Strong 2024 Profits

April 2, 2025
Kenya Wildlife Service shares an update on the successful repatriation of 17 mountain bongos, now thriving in their newly established sanctuary in Mount Kenya, marking a major milestone in conservation efforts.

Repatriated Mountain Bongos Show Signs of Thriving in Their New Habitat

April 1, 2025
Tourism CS Rebecca Miano discusses the economic impact and global appeal of the 2025 Safari Rally

Tourism CS Rebecca Miano Reveals Economic Impact of the 2025 Safari Rally

April 1, 2025

Tourism Ministry Leads Push to Improve Passenger Experience at JKIA with New Service Charter

April 1, 2025
Kenyan Business Feed

We focus on news, analysis, and reports about Kenyan business, covering sectors like agriculture, finance, tourism, and technology.

Categories

  • African
  • Agribusiness
  • Courts
  • Education
  • Health
  • Hospitality
  • Manufacturing
  • NetWorths
  • News
  • Reports & Analysis
  • World Business

Popular News

  • First look at the prison where El Chapo may live for the rest of his life

    First look at the prison where El Chapo may live for the rest of his life

    2157 shares
    Share 1040 Tweet 466
  • Sameer Africa CEO Sacked

    1803 shares
    Share 749 Tweet 439

Recent News

Co-operative Bank Subsidiaries

Co-operative Bank Subsidiaries Shine with Strong 2024 Profits

April 2, 2025
Kenya Wildlife Service shares an update on the successful repatriation of 17 mountain bongos, now thriving in their newly established sanctuary in Mount Kenya, marking a major milestone in conservation efforts.

Repatriated Mountain Bongos Show Signs of Thriving in Their New Habitat

April 1, 2025
  • Home
  • African
  • News
  • Education
  • Health
  • Reports & Analysis
  • World Business

© 2025 KBF

No Result
View All Result
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business

© 2025 KBF