WIBA insurance Kenya

Why Protection Isn’t Optional — It’s the Law

Running a successful enterprise in Kenya, regardless of its size, places you squarely under the WIBA umbrella. This isn’t a complex, theoretical challenge; it is the fundamental obligation of every employer to protect their staff against work-related risks.

At Step by Step Insurance Agency, we understand that managing risk is crucial for continuous growth. In the rapidly evolving regulatory landscape, securing the right insurance is non-negotiable. This comprehensive guide details the absolute necessity of WIBA insurance and the complementary, crucial defence provided by Employer’s Liability, demonstrating why a tailored approach is your most valuable asset in business protection.

Section 1: Decoding WIBA — The Mandatory Foundation

The Mandate of the Work Injury Benefits Act (WIBA 2007)

The WIBA Act of 2007 (Cap. 236) mandates that every employer in Kenya must obtain and maintain an insurance policy with an insurer approved by the Minister.

If an employee is injured or falls ill while working — whether in the office, on-site, in transit, or at a client’s location — the employer is legally liable for compensation, medical bills, and lost wages.

Here’s the blunt truth: WIBA insurance is not a luxury — it’s a legal requirement. The policy you purchase is the tool that helps you fulfil this legal and financial obligation without jeopardising your operational stability. Learn more about common WIBA mistakes employers make and how to avoid them.

Who Must Comply?

• All employers who pay salaries, whether permanent or temporary, must comply.
• The employee scope is broad: WIBA covers those in employment (as defined by the Act) and includes occupational diseases and injuries during work.
• Non-employees or certain exclusions (e.g., persons employed outside Kenya for more than 12 months) may fall outside the scope.

What Comprehensive WIBA Coverage Entails

WIBA offers a full circle of protection, easing the financial burden on the employer and ensuring the employee receives immediate care and compensation. Among the core areas of coverage:

• Compensation for accidental injuries or illnesses sustained during employment.
• Permanent total disability or death: compensation is substantial, set at 96 months (≈ 8 years) of the employee’s earnings (subject to schedule).
• Temporary total or partial disablement: weekly earnings benefits (up to 52 weeks in many policies) for temporary incapacity.
• Medical expenses: covers hospitalisation, dental, surgical dressings, drugs, nursing services, and artificial limbs.
• Funeral expenses: reasonable funeral costs in the case of work-related death.

Key WIBA Coverage Table

Why Tailored Solutions Matter

While compliance is mandatory, relying on a generic, “one-size-fits-all” WIBA policy can expose your business to gaps, particularly in industries with higher risk (construction, manufacturing, transport).

Understanding the Cost of WIBA:

Premiums are generally affordable and calculated based on payroll, nature of work, and risk classification. For detailed information, check out how WIBA premiums are calculated.

A specialised broker ensures your risk exposure (type of work, salary levels) is properly reflected in the policy structure, preventing overpayment or, worse, under-insurance that could leave your business liable.

The Consequences of Non-Compliance

Ignoring WIBA is not an option. The implications are serious:

• Financial penalties – The law empowers authorities to impose fines.
• Legal exposure – Injured employees or dependants may pursue claims.
• Operational risk – Business permits/tenders may require proof of WIBA cover.
• Brand & employee-morale risk – Lack of coverage undermines employer credibility.

Discover more about the real cost of ignoring WIBA insurance.

Section 2: The Critical Need for Tailored Solutions and Risk Profiling

Given the diverse risk profiles across industries, a tailored policy is essential. At Step by Step, we emphasise:

• Bespoke risk assessment: payroll, worker classification, work environment.
• Multiple insurer quotes: to drive competitive premium and broad coverage.
• Proper structuring: aligning WIBA cover with operations and exposures.

Section 3: The Employer’s Liability Gap — The Essential Legal Shield

It’s a common misconception that WIBA alone offers complete protection. While WIBA handles statutory compensation, it does not defend your business against claims of negligence or liability at common law. This critical gap is filled by Employer’s Liability Insurance.

Why Employer’s Liability is the Secret Sauce of Business Protection

• Employer’s Liability cover is only available if you already have WIBA in place, often structured as an add-on.
• WIBA ensures you comply with statutory liability; Employer’s Liability ensures you are protected from lawsuits and claims for negligence that go beyond statutory compensation.

What Employer’s Liability Covers

• Legal liability under common law for employee injury/illness/death.
• Legal costs and expenses incurred by the claimant (employee).
• Legal costs incurred by you (the employer) during defence.
• Compensation awarded by court beyond what WIBA covers.

Affordability vs Risk

Employer’s Liability is typically affordable and structured as a “top-up” on your WIBA premium, often with cover levels such as KSh 2 million per person and KSh 10 million per occurrence.

Given Kenya’s rising employee awareness and litigation trends, this is not just a “big company” issue—SMEs and start-ups need this shield too.

Section 4: Tailored Coverage — Our Partnership Approach to Business Risk

At Step by Step Insurance Agency, we ensure your business receives the best possible protection by prioritising quality and fit:

• Bespoke Risk Assessment – We analyse payroll, operational risk, and legal exposures.
• Access to Multiple Quotes – We leverage our insurer network for advantageous terms.
• Comprehensive Extension – We ensure your WIBA cover is properly extended with Employer’s Liability.
• Claims Support & Guidance – We assist in notification, documentation, and follow-through.

Bonus Coverage: Group Personal Accident (GPA) — Going Beyond the Law

To truly demonstrate care for your workforce and foster employee retention, many forward-thinking Kenyan businesses opt for GPA cover alongside WIBA.

If WIBA is adherence to the law, GPA is a gesture of commitment.

Some insurers offer “WIBA Plus” versions that integrate WIBA with 24-hour personal accident coverage.

Combining WIBA with GPA and Employer’s Liability creates full-circle protection: statutory cover, legal defence, and enhanced employee welfare.

Section 5: Practical Guide to Securing Your Comprehensive Workplace Protection

Securing your WIBA and Employer’s Liability coverage is straightforward when guided by a reliable intermediary like Step by Step. Follow these steps:

1. Ensure you purchase a licensed policy: Your WIBA policy must be issued by an approved insurer.
2. Consult an expert intermediary: A registered broker ensures accurate structuring and competitive quotes.
3. Maintain accurate records: Employee changes affect premium and policy validity.
4. Prompt incident reporting: Fatal accidents must be reported within 24 hours; others within 7 days.
5. Optional: Add GPA or WIBA-Plus for broader employee welfare.
6. Periodic review: Reassess cover types, limits, and staffing changes as your business grows.

Section 6: Important Note — The Ride-On Nature of Employer’s Liability

Employer’s Liability cover rides on the WIBA policy — it cannot be taken independently. Insurers only offer this policy where there is an existing WIBA cover.

This ensures that the statutory minimum (WIBA) is always in place, and the legal shield (Employer’s Liability) is layered above. For Step by Step clients, we ensure both are aligned and structured correctly.

Conclusion: Secure Your Future with Expert Tailored Insurance Solutions

In the face of rising legal awareness among employees and increasing scrutiny of workplace standards, treating mandatory insurance as a mere compliance tick-box is a perilous error. Comprehensive business protection in Kenya requires the robust combination of WIBA (for statutory compensation) and Employer’s Liability (for legal defence).

Don’t expose your years of hard work to the risk of a single, unforeseen lawsuit or gap in cover. Partner with Step by Step Insurance Agency, your reliable expert in securing bespoke coverage from the best underwriters in Kenya—ensuring effortless compliance and total peace of mind.