1. Setting the Scene: Why New Pricing Now?

Insurance is more than a legal requirement; it’s a financial safety net for millions of Kenyans. The 2025 pricing update comes at a time of evolving road usage, rising vehicle values, and increased risk factors. The Insurance Regulatory Authority, alongside industry stakeholders, has pushed for a review to ensure that premiums reflect current realities—balancing affordability with sustainability for insurers.

2. Private Motor Insurance: New Bands, New Rates

For private vehicle owners, the new pricing is structured around the sum insured—essentially, the value of your car. Here’s how the new basic rates break down:

Private Vehicle Insurance Rates

Sum Insured (KES)	Basic Rate (%)
500,000 – 1,500,000	4.00
1,500,001 – 2,000,000	3.75
2,000,001 – 2,500,000	3.50
Over 2,500,000	3.00

Minimum basic premiums also apply, ensuring that even lower-value vehicles contribute to the risk pool.

Add-Ons and Customization

Add-ons are becoming more flexible and transparent. You can now tailor your cover with options like:

• Excess Protector (0.5% of sum insured, minimum KES 5,000)
• Political Violence & Terrorism (PVT) (0.35% of sum insured, minimum KES 3,500)
• Loss of Use
• Windscreen and Radio Cover

These extras can make a big difference in the event of a claim, especially in unpredictable times.

3. Commercial Motor Insurance: Reflecting Real-World Risk

Commercial vehicles—from delivery vans to agricultural trucks—have their own rate structure. The sum insured bands are similar, but the basic rates typically range from 3.00% to 4.00%, depending on the vehicle’s use and tonnage.

Commercial Vehicle Minimum Premiums by Tonnage

Tonnage	Minimum Premium (KES)
Up to 3 tons	4,500
3.5 to 8 tons	5,500
8.5 to 12 tons	6,500
12.5 to 15 tons	7,500
15.5 to 20 tons	10,000
Over 20 tons	15,000

Add-ons mirror those for private vehicles, but with higher limits and stricter requirements, especially for vehicles used for institutional, cartage, or agricultural purposes.

4. PSV Insurance: Higher Risk, Higher Premiums

Public Service Vehicles (PSVs)—including taxis, matatus, and chauffeur-driven cars—face higher risks and thus higher premiums. For example:

PSV Insurance Rates

Vehicle Type	Rate (%)	Minimum Premium (KES)
PSV Chauffeur-driven	5.50	35,000
Motorcycle PSV	4.00	6,000
Tuk Tuk PSV	5.00	10,000

Personal Liability Limits (PLL) are now clearly defined, with KES 500 per person for all PSVs and KES 250 for commercial institutionals.

Time on Risk (TOR) cover is available for short-term needs (e.g., KES 1,000 + 100 PLL per passenger for PSV chauffeur-driven).

5. Motorcycle and Tuk Tuk Insurance: Affordable but Essential

Motorcycles and tuk tuks are the backbone of urban and rural mobility. The new rates are:

• Private motorcycles: 3.00%, minimum KES 5,000
• PSV motorcycles: 4.00%, minimum KES 6,000
• Commercial tuk tuks: 4.00%, minimum KES 10,000
• PSV tuk tuks: 5.00%, minimum KES 10,000

Add-ons are more limited here, but essentials like excess protector and PVT are still available.

6. Fleet Insurance: Streamlined for Business

For businesses managing multiple vehicles, fleet insurance offers simplified administration and potentially lower per-vehicle rates. Fleet rates follow the same basic structure as individual policies, but with consolidated documentation—log books and PIN certificates for each vehicle are mandatory.

Third Party Only (TPO) fleet rates are available, providing basic legal cover at a lower cost.

7. Special Provisions and Exclusions

Not every vehicle qualifies for comprehensive cover. Key exclusions and special rules include:

• Maximum age for comprehensive: 15 years (private), 20 years (commercial)
• Special models (e.g., Probox, Succeed, Voxy, Wish, Noah, Sienta) require referral and a declaration of use form
• Private vehicles used commercially must pay commercial rates
• Vehicles over 15 years require a mechanical inspection

These measures are designed to manage risk and ensure that the insurance pool remains solvent and fair for all.

8. Add-Ons and Optional Covers: Customizing Your Protection

Beyond the basics, you can enhance your policy with:

• Excess Protector: 0.5% of sum insured (minimums apply)
• PVT: 0.35% of sum insured (minimums apply)
• Loss of Use: Compensation for alternative transport if your vehicle is off the road
• Windscreen and Radio Cover: For limits above KES 30,000 (private) or KES 50,000 (commercial), a 10% premium applies

These add-ons can be lifesavers in the event of a claim, but remember to review the terms and limits carefully.

9. Third Party Only (TPO) Premiums: The Minimum Legal Requirement

TPO remains the most affordable option, covering only damage to third parties. Minimum premiums are:

• Private vehicles: KES 5,500
• Commercial vehicles (by tonnage): KES 4,500–15,000
• PSV: KES 5,500
• Motorcycles: KES 2,000–3,000
• Tuk tuks: KES 3,000

TPO is a legal must, but it offers no protection for your own vehicle—something to consider if your car is a major investment.

10. Documentation and Compliance: No Shortcuts

To take out or renew insurance, you’ll need:

• Log book and PIN certificate for every vehicle
• Mechanical inspection for vehicles over 15 years

These requirements help insurers verify ownership, assess risk, and prevent fraud.