Kenya orders Insurance Act review

President William Ruto on May 22 ordered an immediate review of Kenya’s Insurance Act after public transport operators complained about delayed and disputed insurance payouts. Ruto said at State House in Mombasa that the Ministry of Transport would work with the Insurance Regulatory Authority and other stakeholders on the exercise. (the-star.co.ke) He said the review would be completed within three months. The directive followed complaints from matatu operators that insurers were not honoring claims despite regular premium payments. ### Why did Ruto intervene now? State House in Mombasa was where Ruto linked the review directly to complaints from public service vehicle operators over insurance claims. He said operators had raised long-running concerns about compensation disputes and the handling of claims after accidents. (eastleighvoice.co.ke) Ruto said the problem was affecting passengers as well as vehicle owners. “Despite having insurance covers for their vehicles, passengers end up paying bills when accidents occur,” he said, adding that insurance cover “has to mean something when it is paid for by our transporters.” ### What exactly is being reviewed? The Insurance Act is one of the laws Ruto said should be reviewed immediately, alongside the Auctioneers Act and related transport rules. (the-star.co.ke) He said the review should be concluded within three months and should produce what he called a more responsive and fairer framework for sector players. The Insurance Regulatory Authority describes itself as the statutory agency established under the Insurance Act, Cap 487, to regulate, supervise and develop Kenya’s insurance industry. (the-star.co.ke) That places the regulator at the center of any consultations on claims handling, compliance and consumer protection issues that may arise in the review. ### Which part of the transport sector triggered the move? (the-star.co.ke) Matatu operators were at the center of the complaints cited by Ruto. Kenyan media reports said operators had complained about delayed settlements, disputed liability and compensation processes that left owners and passengers exposed to losses after accidents. Public service vehicles also sit in a broader road-safety debate in Kenya. (the-star.co.ke) In remarks on March 2, Ruto said fatalities involving public service vehicles had declined 10% during a pilot enforcement period, while Kenya still recorded more than 4,000 road deaths annually and 5,009 deaths in 2025. (ira.go.ke) ### Who will handle the review? The Ministry of Transport was named by Ruto as the lead ministry for the process, working with the Insurance Regulatory Authority and other stakeholders. Eastleigh Voice reported that the consultations are meant to address long-standing concerns affecting operators in the public transport sector, particularly insurance claims. (the-star.co.ke) The same reports said the review would also cover enforcement issues tied to auctions and repossessions. Ruto said the aim was to improve the operating environment for the transport sector, which he described as important to the movement of people and goods. (president.go.ke) ### What happens next in the next three months? The three-month deadline set on May 22 gives the government until late August 2026 to complete the review ordered by Ruto. The next formal step, according to his directive, is for the Ministry of Transport and the Insurance Regulatory Authority to engage stakeholders and bring the review to a conclusion within that period. (the-star.co.ke) (eastleighvoice.co.ke)