Stakeholders push for insurance regulations overhaul
By Mathew Ndungu, July 16, 2025Stakeholders in the bancassurance sector are calling for urgent reforms to Kenya’s insurance regulatory framework, warning that the current system is ill-equipped to support the evolving needs of the market or the pace of innovation.
The calls were made during the 3rd Annual Bancassurance Association of Kenya (BAK) Conference, where participants raised concerns that outdated regulations are increasingly out of step with industry developments and could impede growth in insurance coverage.
Bancassurance, which allows banks to offer insurance products to their customers, has played a key role in expanding access to insurance in Kenya. But sector players now argue that without meaningful updates to policy and oversight, the industry risks stagnation.
BAK chairperson and KCB Bancassurance Intermediary Managing Director, Aggrey Mulumbi, said the current regulatory framework does not reflect the realities of a digital-first consumer base or the diversity of new distribution models emerging in the financial sector.
“We have made significant progress in deepening insurance penetration through bancassurance, but the landscape has changed. The law must now reflect joint ventures, app-based platforms, fintechs, Saccos, and telcos that are increasingly central to insurance access,” he said.
Mulumbi urged the Insurance Regulatory Authority (IRA) to work with the industry to develop a more inclusive and innovation-friendly framework that can accommodate these changes without undermining consumer protections.
The conference comes amid growing unease in the industry following the rollout of new regulatory measures that aim to improve compliance and transparency in insurance distribution.
While the reforms have been welcomed in principle, some banks and insurance partners argue they fall short in recognising the integrated nature of modern financial services.
The new rules, stakeholders say, risk adding red tape that could undermine operational efficiency and limit outreach to underserved segments—particularly if introduced without adequate industry input.
Old Mutual Group CEO Arthur Oginga warned against framing the conversation around market competition, arguing that what is needed is deeper collaboration across sectors.