The Law Society of Kenya (LSK) wants a section of the law which gives the insurance regulator sweeping powers to appoint receiver managers for failed companies declared unconstitutional.
LSK claims that Section 67 of the Insurance Act, which empowers the Commissioner of Insurance to appoint a statutory manager to take over financially troubled insurance firms, is unconstitutional. The lawyers argue that the law has a loophole which has been exploited by the commissioner and the Insurance Regulatory Authority (IRA) to install statutory managers and moratoriums on claims payments for infinite periods.
