Reprieve for Kenyan motorists as court stops hike in insurance costs: report


The Kenyan high court has temporarily suspended the revised insurance premiums for motor vehicles.

Insurance companies beginning of this month had effected a directive by the industry regulator Insurance Regulatory Authority (IRA) increasing insurance cover by up to 50 percent, according to a report from KBC.

The providers had indicated that they will no longer offer comprehensive cover for cars aged more than 12 years or those with a value of Kshs 600,000 and below, the report said.

The move to adjust the premiums has been faulted by motorists and car dealers saying there was no public participation which IRA ought to have led before allowing underwriters to make adjustments, the report added.

The latest ruling is a big win for Kenya Human Rights Commission which moved to court to challenge the decision by the regulator.

The human rights body argued that the increase “was illegal because there was no public participation.”