Insurance brokers ink security guarantee deal to boost liquidity

IRA

Insurance Regulatory Authority CEO Godfrey Kiptum. FILE PHOTO | NMG

Insurance brokers have signed a deal that will save them from tying Sh3 million annually as a bank guarantee in line with regulatory requirements, taking pressure off their working capital.

The credit-only financial institution, Fincorp Credit has negotiated for an arrangement that will see members of the Association of Insurance Brokers of Kenya (AIBK) pay 10 percent in cash and then take a trade credit insurance on the balance.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.