The Insurance Professionals Bill 2024: New Laws Signed to Reform the Insurance Sector and Combat Money Laundering in Kenya

On June 17, 2025, President William Ruto signed into law two landmark bills aimed at reforming Kenya’s insurance sector and strengthening the country’s defenses against money laundering and terrorism financing. These are the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill, 2025, and the Insurance Professionals Bill, 2024. Together, these laws establish a comprehensive legal and regulatory framework designed to professionalize the insurance industry, enhance consumer protection, and safeguard the financial system from illicit activities.

Strengthening the Financial System Against Illicit Flows

The Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill, 2025, updates Kenya’s legal framework to better detect, prevent, and punish money laundering and terrorism financing. This legislation imposes stricter compliance requirements on financial institutions, including insurance companies, to ensure transparency and accountability in financial transactions. By tightening regulatory oversight, the law aims to protect the integrity of Kenya’s financial sector and align it with international standards for combating financial crimes.

Professionalizing the Insurance Sector: The Insurance Professionals Bill, 2024

The Insurance Professionals Bill, 2024, is a transformative statute that seeks to elevate the standards of professionalism, ethics, and accountability within Kenya’s insurance industry. It introduces a structured and mandatory registration and certification system for all insurance practitioners, thereby formalizing the profession and enhancing consumer confidence.

Establishment of Key Regulatory Bodies

The Bill establishes several institutional bodies to oversee the insurance profession:

• Insurance Institute of Kenya (IIK): The central professional body responsible for regulating, developing, and promoting insurance practitioners’ standards. The IIK will coordinate continuous professional development, ethical conduct, and represent the industry regionally and internationally.
• Insurance Professionals Examinations Board: Charged with administering professional examinations to ensure practitioners meet the required knowledge and competency standards.
• Registration of Insurance Professionals Committee: Responsible for registering qualified insurance practitioners and maintaining a registry of licensed professionals.

Registration and Licensing Framework

The Bill mandates a bottom-up registration regime whereby all insurance practitioners must be registered and hold valid practising certificates to operate legally. Registration criteria include relevant qualifications, experience, and good character. This framework ensures that only competent and ethical individuals engage in insurance activities, thereby reducing fraud and malpractice.

Examination and Certification

To qualify for registration, insurance practitioners must pass examinations administered by the Insurance Professionals Examinations Board. Certification is a prerequisite for selling insurance products, ensuring that agents and brokers possess adequate technical knowledge and professionalism.

Professional Standards and Disciplinary Mechanisms

The Bill establishes a Disciplinary Committee empowered to investigate and sanction professional misconduct. These mechanisms promote accountability and high service standards, protecting consumers from unethical practices. The IIK will also oversee continuous professional development to keep practitioners updated on industry best practices.

Institutional Governance and Collaboration

The IIK will be led by an Executive Director and supported by staff to implement the Bill’s provisions effectively. The Institute is also tasked with fostering collaboration with regional and international insurance bodies to enhance the sector’s reputation and integration.

Expected Impact and Benefits

These laws are expected to:

Impact Area	Expected Outcome
Professionalism & Ethics	Enhanced standards improving public trust in insurance services
Consumer Protection	Stronger regulatory oversight and disciplinary mechanisms
Fraud Reduction	Decreased malpractice through mandatory certification
Formalization	Regulation of previously informal agents and brokers
International Standing	Improved reputation in global insurance markets
Sector Growth	Increased investment and market expansion opportunities

Challenges and Considerations

While these reforms mark significant progress, challenges remain. The formal registration and certification requirements may initially exclude some informal insurance agents, necessitating capacity-building programs to help them meet new standards. Additionally, effective enforcement will require adequate resources and coordination among regulatory agencies.