Insurance Regulatory Authority (IRA) acting chief executive Godfrey Kiptum said the undisclosed firms were yet to be cleared and were awaiting approval of the Microinsurance Regulations 2018 by the National Assembly.
Ten companies have applied for permits to start offering micro-insurance policies signalling an appetite by insurers to compensate individuals against loss of property at a daily cost of Sh40.
Insurance Regulatory Authority (IRA) acting chief executive Godfrey Kiptum said the undisclosed firms were yet to be cleared and were awaiting approval of the Microinsurance Regulations 2018 by the National Assembly.
The regulations provide for provision of policies to individuals or property such as homes, livestock and crops at daily premiums not exceeding Sh40 with the insured sum capped at Sh500,000.
“We have a lot of interest in micro-insurance. We have about 10 people who have applied to do that business but we have not been able to do it because the framework has not been in place,” Mr Kiptum said. “We expect that within the not too distant future this year, that will be done.”
Legislators are required to approve rules and regulations formulated by the regulatory bodies before they are implemented under the Statutory Instruments Act, 2013. The rules are targeted at low-income earners.
They are expected to help boost insurance penetration which stood at a lowly 2.71 percent of Kenya’s gross domestic product (GDP) in 2017, a drop from 2.75 percent the year before.
“The rules and regulations are simplified and it will be quite easy to buy covers, lodge claims and get settlement,” Mr Kiptum said.
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