Kenya’s Court of Appeal recently upheld a ruling that declared the Motor Insurance Underwriting Guidelines established by the Insurance Regulatory Authority (IRA) in 2009 to be unconstitutional. The guidelines, which aimed to set fixed motor insurance premiums for all insurers, were challenged by the Commission on Administrative Justice (CAJ), representing motorists. The court found the guidelines to be “irrational, unreasonable, and disproportionate,” emphasizing that they could unfairly benefit certain companies and risk creating a cartel in the industry. This decision maintains that the IRA does not possess the authority to dictate premium rates in the motor insurance sector.
