Insurance Professionals Act

Act No. 5 of 2025

Insurance Professionals Act

Citation: Act No. 5 of 2025
Date: 20 June 2025
Language: English
Original enactment: Download original enactment (PDF) (731.8 KB)

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LAWS OF KENYA

INSURANCE PROFESSIONALS ACT

NO. 5 OF 2025

Published in Kenya Gazette on 20 June 2025
Assented to on 17 June 2025
Commenced on 4 July 2025

AN ACT of Parliament to make provision for the establishment of the Insurance Institute of Kenya, and the Insurance Professionals Examinations Board, to provide for examination, registration and regulation of standards and practice of insurance professionals and make provision for matters concerned therewith and incidental thereto

Part I – PRELIMINARY

1. Short title

This Act may be cited as the Insurance Professionals Act, 2025.

2. Interpretation

In this Act, unless the context otherwise requires—“actuary” has the meaning assigned to it in the Insurance Act (Cap. 487);“asset” has the meaning assigned to it in the Insurance Act (Cap. 487);“Association” means an association of professionals established under section 10 of the Societies Act (Cap 108);“Authority” means the Insurance Regulatory Authority established by section 3 of Insurance Act (Cap 487);“bond investment business” has the meaning assigned to it in the Insurance Act (Cap. 487);“broker” has the meaning assigned to it in the Insurance Act (Cap. 487);“Cabinet secretary” means the Cabinet Secretary for the time being responsible for matters relating to finance;“Chairperson” means the Chairperson of the Institute appointed under this Act;“Commissioner” means the person appointed under section 3E of the Insurance Act (Cap. 487);“Council” means the Executive Council of the institute established under section 6;“Disciplinary committee” means the committee established under section 31;“Examination board” means the Insurance Professionals Examination Board established under section 16;“Executive director” means the person appointed as the Executive Director of the Institute under section 10;“Insurance professional” means a person registered as an insurance professional under section 24;“Insurance Training and Education Trust” has the meaning assigned to it in the Insurance Act (Cap. 487);“insurer” has the meaning assigned to it in the Insurance Act (Cap. 487);“policy” has the meaning assigned to it in section 2 of the Insurance Act (Cap. 487);“register” means the register of insurance professionals maintained under section 27;“registration committee” means the Committee appointed under section 13; and“risk manager” has the meaning assigned to it in the Insurance Act (Cap. 487).

Part II – THE INSURANCE INSTITUTE OF KENYA

3. Establishment of the Institute

(1)There is established an Institute to be known as the Insurance Institute of Kenya.

(2)The Institute shall be a body corporate with perpetual succession and a common seal, and shall, in its corporate name, be capable of—

(a)suing and being sued;

(b)taking, purchasing or otherwise acquiring, holding, charging or disposing of both movable and immovable property;

(c)borrowing money;

(d)entering into contracts; and

(e)doing or performing all such other acts necessary for the proper performance of its functions under this Act, which may be lawfully done or performed by a body corporate.

(3)The Headquarters of the Institute shall be in Nairobi, but the Institute may establish offices at any place in Kenya.

4. Membership of the Institute

(1)A person who is registered under subsection (2) and (3) is a member of the Institute.

(2)The members of the Institute shall be classified into the following categories—

(a)Fellows, comprising those members who have successfully completed Fellow of the Chartered Insurance Institute of London (FCII) or Fellow of Insurance Institute of Kenya (FIIK) examinations offered by Chartered Insurance Institute of London and Insurance Institute of Kenya respectively or any other institution recognized by the Examinations Board to offer such a qualification (designatory letters F.I.I.K.); and

(b)Associate Members, comprising those members who have successfully completed ACII or AIIK examinations offered by Chartered Insurance Institute of London and Insurance Institute of Kenya respectively or any other institution recognized by the Examinations Board to offer such a qualification (designatory letters A.I.I.K.).

(3)The members of the Institute as specified in this section shall pay such membership fees, subscriptions and penalties as the Council may from time to time determine.

(4)The members of the Institute under subsection (2) shall be entitled to such rights of membership as the Council may prescribe.

5. Functions of the Institute

The functions of the Institute shall be to—

(a)establish, monitor and promote standards of professional competence and practice amongst insurance professionals;

(b)register persons who meet the required professional and ethical standards;

(c)promote research into the areas of insurance practice and related matters;

(d)co-ordinate and oversee continuous professional development of insurance professionals;

(e)provide a medium for communication and exchange of information, knowledge and ethical standards for those persons engaged in insurance practice;

(f)network with regional and international related bodies to promote and develop progressive insurance practices in the region and around the world;

(g)have regard to the conduct of persons registered and licensed under this Act, and take such disciplinary measures as may be necessary to maintain a proper standard of conduct among such persons;

(h)promote and protect the welfare and interests of insurance professionals;

(i)promote inter-professional collaboration with other professional bodies; and

(j)carry out such other functions related to the implementation of this Act.

Part III – ADMINISTRATION OF THE INSTITUTE

6. Council of the Institute

The management of the Institute shall vest in a Council which shall comprise —

(a)a Chairperson elected by members of the Institute;

(b)seven members of the Institute elected in the manner provided in the First Schedule;

(c)the Commissioner of Insurance or a representative designated in writing;

(d)one person appointed by the Cabinet Secretary in writing; and

(e)the Executive Director of the Institute who shall not vote at meetings.

7. Conduct of business and affairs of the Council

(1)The conduct and regulation of the business and affairs of the Council shall be as provided in the First Schedule.

(2)Except as provided in the First Schedule, the Council of the Institute may regulate its own procedure.

8. Powers of the Council

The Council shall have all powers necessary for the proper performance of its functions under this Act and in particular, but without prejudice to the generality of the foregoing, shall have power to —

(a)control, supervise and administer the assets of the Institute in such manner and for such purpose as best promotes the purpose for which the Institute is established;

(b)determine the provisions to be made for capital and recurrent expenditure and for the reserves of the Council;

(c)receive any grants, gifts, donations or endowments and make legitimate disbursements therefrom;

(d)enter into association with other bodies or organizations within or outside Kenya as the Council may consider desirable or appropriate and in furtherance of the purpose for which the Institute is established;

(e)open a banking account or banking accounts for the funds of the Institute; and

(f)invest any funds of the Institute not immediately required for its purposes as provided under section 37.

9. Delegation by Council

The Council may, by resolution generally or in any particular case, delegate to any committee of the Council or to any member, officer, employee or an agent of the Institute, the exercise of any of the powers or the performance of any of the functions or duties of the Council under this Act.

10. Appointment of the Executive Director

(1)There shall be an Executive Director of the Institute who shall be competitively recruited by the Council.

(2)The Executive Director shall hold and vacate the office in accordance with the terms of the instrument of appointment to that office.

(3)The Executive Director shall be an ex officio member of the Council.

(4)The Executive Director shall be the secretary to the Council and shall, subject to the direction of the Council, be responsible for the day-to-day management of the Institute.

(5)A person is qualified for appointment as the Executive Director to the Institute if the person—

(a)is a registered insurance professional;

(b)holds a degree in the relevant field from a university recognized in Kenya;

(c)has at least ten years’ knowledge and experience in the relevant field;

(d)has served in a position of senior management for a period of at least five years; and

(e)meets the requirements of Chapter Six of the Constitution.

(6)The Executive Director may be removed from office for —

(a)inability to perform the functions of the office arising out of mental or physical infirmity;

(b)gross misconduct; or

(c)bankruptcy.

(7)The Executive Director shall hold office for a period of four years renewable once.

11. Staff of the Council

The Council may appoint such other officers and other staff or hire such experts as may be necessary for the proper discharge of the functions of the Institute under this Act, upon such terms and conditions of service as the Council may determine.

12. Limitation of Liability

(1)A staff of the Institute shall not be personally liable for any act or default of the Institute done or omitted to be done in good faith in the course of carrying on the functions of, or exercising of powers conferred upon the Council under this Act.

(2)Despite subsection (1), the Institute shall not be relieved of its liability to pay compensation to any person for any injury to him or her, his or her property or to any of his or her interest caused by the exercise of any power conferred by this Act or by failure, whether wholly or partially, of any works.

Part IV – REGISTRATION OF INSURANCE PROFESSIONALS COMMITTEE

13. The Registration Committee

(1)There shall be a Committee to be known as the Registration Committee.

(2)The Registration Committee shall be a Committee of the Institute.

(3)The provisions of the Second Schedule shall have effect with respect to the Registration Committee.

(4)The functions of the Registration Committee shall be to—

(a)receive applications for registration and grant practising certificates in accordance with the provisions of this Act;

(b)monitor compliance with professional quality assurance and other standards published by the Council for observance by the members of the Institute;

(c)where appropriate and based on the results of a quality assurance investigation recommend to the Council that a member’s conduct be referred for inquiry under section 32;

(d)advise the Council on matters pertaining to professional and other standards necessary for the achievement of quality assurance; and

(e)perform any other functions connected therewith or incidental thereto.

14. Constitution of the Registration Committee

The Registration Committee shall consist of five members appointed by the Council from the membership of the Institute one of whom shall be nominated by the Examinations Board.

15. Registrar of the Registration Committee

(1)The Council shall appoint a Registrar of the Registration Committee who shall be an employee of the Institute.

(2)The Registrar of the Registration Committee shall hold and vacate the office of the Registrar in accordance with the instrument of appointment.

(3)In addition to the functions which the registrar is required to exercise and perform under this Act, the Registrar of the Registration Committee shall exercise and perform functions which the Registration Committee may, from time to time determine.

(4)The Registrar of the Registration Committee shall be the Secretary to the Registration Committee, and may, with the consent of the person presiding at a meeting, take part in the deliberations on any matter arising at the meeting, but shall not be entitled to vote on any such matter.

Part V – INSURANCE PROFESSIONALS EXAMINATIONS BOARD

16. The Examinations Board

(1)There is established a board known as the Insurance Professionals Examinations Board.

(2)The Examinations Board shall be a body corporate with perpetual succession and a common seal, and shall, in its corporate name, be capable of —

(a)suing and being sued;

(b)taking, purchasing or otherwise acquiring, holding, charging or disposing of both movable and immovable property;

(c)borrowing money;

(d)entering into contracts; or

(e)doing or performing all such other acts necessary for the proper performance of its functions under this Act, which may be lawfully done or performed by a body corporate.

(3)The conduct and regulation of the business and affairs of the Examinations Board shall be as provided in the Third Schedule.

17. Membership of the Examinations Board

(1)The Examinations Board shall consist of nine members as follows —

(a)two persons nominated by the Cabinet Secretary for the time being responsible for education one of whom shall be from the Kenya Institute of Curriculum Development;

(b)the Commissioner of Insurance or a representative designated in writing;

(c)one person nominated by the Commission for University Education;

(d)a nominee from the Association of Kenya Insurers who must be an insurance professional nominated in writing;

(e)a nominee from the Association of Insurance Brokers of Kenya who shall be an insurance professional nominated in writing;

(f)one person nominated by the Council from amongst the members of the institute;

(g)one person nominated by the Insurance Training and Education Trust; and

(h)one person nominated by the recognized insurance training institutions.

(2)In nominating a person for appointment pursuant to subsection (1) (a), (b), (c), (d), (e), (f), (g) and (h) the nominating authority shall have regard to the suitability of the person being appointed, who should be a member of the Institute or have an interest in the affairs of the Institute.

18. Registrar of the Examinations Board

(1)There shall be a Registrar of the Examinations Board who shall be appointed by the Examinations Board.

(2)The Registrar of the Examinations Board shall hold and vacate the office in accordance with the terms of the instrument of appointment.

(3)The Registrar of the Examinations Board shall serve as the Secretary to the Board, and may, with the consent of the person presiding at a meeting, take part in the deliberations on any matter arising at the meeting, but he or she shall not be entitled to vote on any such matter.

(4)In addition to the functions which the Registrar is required to exercise and perform under this Act, the Registrar of the Examinations Board shall exercise and perform such functions which the Examinations Board may, from time to time, determine.

19. Functions of the Examinations Board

(1)The functions of the Examinations Board are to —

(a)prepare syllabuses for insurance professionals examinations;

(b)make rules with respect to insurance professionals examinations;

(c)issue certificates to candidates who have satisfied examination requirements for insurance professionals;

(d)promote recognition of its examinations for insurance professionals locally and internationally;

(e)liaise with the Cabinet Secretary for the time being responsible for education, in accreditation of institutions to offer professional training for insurance professionals; and

(f)do anything incidental or conducive to the performance of any of the preceding functions.

(2)The Examinations Board shall consult with the Council as often as it considers necessary for the purpose of exercising and performing its duties.

(3)The Examinations Board may establish such committees including examinations committees as it considers necessary for the purpose of exercising and performing its function.

Part VI – PRACTISING CERTIFICATES AND REGISTRATION OF INSURANCE PROFESSIONALS

20. Practising as an Insurance Professional

(1)Subject to this section, a person practices as an Insurance Professional for the purpose of this Act if, in consideration of remuneration or other benefits received or to be received, engages —

(a)on their own or in partnership with others or as an employee or agent of another who is in insurance practice; or

(b)in any practice, or performs or offers to perform any services, which may be prescribed.

(2)Without prejudice to the generality of the foregoing, a person is said to engage in insurance practice if the person —

(a)sells or markets insurance products or services either on their own account or on behalf of an insurer, a re-insurer and or an insurance broker or on their own account or in association with others;

(b)carries on the business of an insurance broker, either on their own account or in association with others;

(c)carries on the business of a claim settling agent either on their own account or in association with others;

(d)carries on the business of a risk manager either on their own account or in association with others;

(e)engages in insurance consulting services; or

(f)engages in any other business which is prescribed by the Cabinet Secretary as being insurance practice.

21. Application for a Practising Certificate

(1)A person wishing to obtain a practising certificate shall apply to the Registration Committee.

(2)An application for a practising certificate shall be in the prescribed form and shall be accompanied by the prescribed fee.

22. Issue of Practising Certificate

(1)Where an application is made by a person in accordance with section 21, the Registration Committee shall issue a practising certificate if it is satisfied that the person —

(a)is registered under this Act;

(b)has received from an Insurance Professional who is the holder of a practising certificate, instruction of such a nature and for such period as may be prescribed;

(c)is in good standing with the Institute; and

(d)meets such other requirements as may be prescribed.

(2)A practising certificate issued to any person remains the property of the Institute.

23. Duration of Practising Certificate

(1)A practising certificate issued under this Act shall be in force for the calendar year in which it is issued but shall only be effective from the date of issue.

(2)Notwithstanding subsection (1), a practising certificate issued to any person shall cease to be in force if that person ceases to be registered.

(3)A practising certificate ceases to be in force during the period which it is suspended.

(4)A person may surrender to the Registration Committee, a practising certificate issued to him or her and, in that event, the certificate shall cease to be in force.

(5)Where a practising certificate ceases to be in force under subsection (2), the person to whom the certificate was issued shall deliver it to the Registration Committee within fourteen days after the date on which it ceases to be in force.

(6)A person who, without reasonable excuse, contravenes subsection (5) commits an offence and is liable on conviction to a fine not exceeding ten thousand shillings.

24. Application for Registration

(1)A person wishing to be registered as an Insurance Professional shall apply to the Registration Committee.

(2)An application to be registered as an Insurance Professional shall be in the prescribed form and shall be accompanied by the prescribed fee.

(3)Where an application is made by a person in accordance with this section, the Registration Committee shall approve the application if the person meets the qualifications set out in section 25 of this Act.

(4)A person who, in an application to be registered, willfully makes a false or misleading statement commits an offence and shall be liable on conviction to a fine not exceeding one hundred thousand shillings or to imprisonment for a period not exceeding six months or to both.

25. Qualifications for registration

(1)Subject to this section, a person is qualified to be registered if the person—

(a)has been certified by the Examinations Board as having attained the final qualification in Insurance practice in an examination administered by the Examinations Board or from an institution in Kenya or elsewhere which is recognized by the Board; or

(b)holds a qualification approved under subsection (2) by the Registration Committee.

(2)The Registration Committee may from time to time, by notice in the Gazette, approve qualifications, which it considers sufficient to allow a person to be registered, and may, in the same manner, withdraw any such approval.

26. Disqualification from registration

Subject to this section, a person is disqualified from being registered—

(a)if such person is convicted by a court of competent jurisdiction in Kenya or elsewhere, of an offence involving fraud or dishonesty;

(b)if such person is an undischarged bankrupt; or

(c)if such person is of unsound mind and has been certified to be so by a medical practitioner.

27. Register

(1)The Registrar of the Registration Committee shall cause to be kept a register in which shall be recorded—

(a)the name of any person whose application under section 24 of this Act is approved;

(b)the particulars of the practising certificate including the practising certificate number;

(c)particulars of the cancellation of the registration of any person;

(d)the fact that the registration of any person is restored under this Act; and

(e)such other matters as the Registration Committee may determine.

(2)The Registrar to the Registration Committee may cause to be made such alterations in the register as are necessary to ensure that the matters recorded therein are accurate.

(3)The register may, at all reasonable hours, be inspected, and copies of all or any part of any entry in the register taken—

(a)without payment, by—

(i)any member of the police force or any public servant, acting in the course of his duty; or

(ii)any person authorized by the Registrar to the Registration Committee; or

(b)upon payment of such fee as may be prescribed, by any other person.

(4)The register shall be received in proceedings before any court or tribunal as evidence of the matters recorded therein which are required by or under this Act to be so recorded.

(5)A document purporting to be certified by the Registrar of the Registration Committee—

(a)to be a true copy of an entry in the register; or

(b)stating that a person is not, or was not on a date specified in the document, the holder of a practising certificate;

shall be received in proceedings before a court or tribunal as prima facie evidence of any such matters contained in the entry of that fact, as the case may be.

(6)Proceedings on an inquiry under this Act before the Disciplinary Committee shall be deemed to be proceedings before a tribunal for the purposes of this section.

28. Cancellation of Registration

(1)Subject to this section, the Registration Committee may cancel the registration of a member of the Institute—

(a)on the recommendation of the Disciplinary Committee under section 33;

(b)if the person becomes ineligible for registration under section 26; or

(c)at the member’s request.

(2)Subsection (2) of section 27 shall apply in relation to the cancellation of the registration of a member of the Institute under subsection (1) of this section.

(3)The Council may require the Registration Committee to cancel the registration of a member of the Institute who fails to comply with the requirements of Section 25.

(4)The registration of a member shall be cancelled by recording in the register particulars of the cancellation.

(5)The registration of a member shall be restored by recording in the register particulars of the restoration.

29. Use of title

A person registered under this Act shall—

(a)by virtue of being so registered, be entitled to take and use the title and description of an Insurance Professional.

(b)not take or use, or affix to or use in connection with his or her premises, any title or description, of an Insurance Professional, other than as indicated by the particulars relating to his or her qualifications entered in the register.

Part VII – DISCIPLINE

30. Professional misconduct

(1)A member of the Institute commits professional misconduct if such member—

(a)fails to follow laid down procedures of his or her employer or client save for those which are in violation of the law;

(b)fails to apply established insurance principles in the course of discharging his professional functions;

(c)engages in corrupt activities or practices;

(d)is guilty of gross negligence in the conduct of his or her professional duties;

(e)engages in negative practices such as nepotism, tribalism, racism and other acts of discrimination in the discharge of their professional functions;

(f)engages in mis-selling insurance products with the intention of obtaining the sale regardless of whether or not the product will be helpful to consumers;

(g)does anything contrary to the Code of Conduct and or fails to do anything required to be done under the Code of Conduct;

(h)discloses information acquired in the course of their duties to any person without the consent of their employer or client or otherwise than required by law;

(i)uses his or her position to obtain or solicits favours of sexual kind or other benefits for which they are not entitled to in the discharge of their professional functions;

(j)engages in activities which are conflict with those of their employer or client or activities which are contrary to those for which he or she is registered as an Insurance Professional;

(k)is found guilty of fraud or any dishonest act;

(l)allows any person to practice in his or her name as an insurance professional, unless such person is the holder of a practising certificate and is in partnership with him or her or employed by him or her;

(m)enters, for the purpose of or in the course of practising as an insurance professional, into partnership with a person who does not hold a practising certificate, or whose membership to the Institute has been cancelled, or secures any professional business through the services of such a person or by means not open to an insurance professional;

(n)pays or allows or agrees to pay, directly or indirectly, to any person (other than a person who holds a practising certificate, or a retired partner or the legal representative of such a partner), any share, commission or brokerage out of the fees for, or profits of his or her professional services;

(o)expresses an opinion on any matter with which he or she is concerned in a professional capacity without obtaining sufficient information on which to base the opinion;

(p)is found guilty of professional misconduct by the Insurance Regulatory Authority; or

(q)does or fails to do any other act which may be prescribed.

(2)Subsection (1)(m) shall not apply to an insurance professional who receives business from foreign insurance professionals.

(3)Without prejudice to subsection (1), the Institute may adopt specific codes of conduct for the respective Insurance Professionals.

31. The Disciplinary Committee

(1)There shall be a committee to be known as the Disciplinary Committee.

(2)The Disciplinary Committee shall consist of six members as follows—

(a)the Chairperson appointed by the Council from persons who are qualified to be appointed as judges of the High Court;

(b)two persons elected by members of the Institute;

(c)the Commissioner of Insurance or a representative appointed in writing; and

(d)two persons appointed by the Cabinet Secretary to represent the public, one of whom shall be a member of the Institute of Arbitrators.

(3)The quorum of a meeting of the Disciplinary Committee shall be three members excluding the Chairperson and the Commissioner of Insurance.

(4)A member of the Disciplinary Committee shall hold office for three years and shall be eligible for re-appointment for one further term.

(5)The Institute shall second a person who is a qualified and registered insurance professional to act as the Secretary to the Disciplinary Committee.

(6)The Council may, at any time, with reasonable cause, terminate the appointment of a member or Chairperson of the Disciplinary Committee.

(7)Where the Chairperson or a member of the Disciplinary Committee is unable to exercise and perform his or her functions, the Council may appoint a person to replace the Chairperson or the member for such period as may be necessary.

32. Inquiry of the Disciplinary committee

(1)Where the Council has reason to believe that a member of the Institute may have committed professional misconduct it, shall refer the matter to the Disciplinary Committee which shall inquire into the matter.

(2)The provisions of the Fourth Schedule shall have effect with respect to an inquiry by the Disciplinary Committee pursuant to subsection (1).

33. Recommendation after inquiry

On the completion of an inquiry under section 32, the Disciplinary Committee shall have power to do any of the following—

(a)dismiss the matter;

(b)reprimand the member;

(c)recommend to the Registration Committee the cancellation of the member’s registration;

(d)recommend to the Registration Committee the suspension of the member; or

(e)recommend to the Registration Committee that the practising certificate of the member be suspended.

34. Determination by the Registration Committee

(1)On the receipt pursuant to section 33 of a copy of a report relating to the alleged professional misconduct of a member of the Institute, the Registration Committee may—

(a)determine that no further action be taken against the member;

(b)reprimand the member;

(c)determine that the registration of the member be cancelled; or

(d)suspend the practising certificate of the member for such period as is specified.

(2)Before making a determination under subsection (1) the Registration Committee may in writing, require the Disciplinary Committee to furnish the Registration Committee such further evidence concerning any matter that is so specified.

(3)The Registration committee shall notify the member of the Institute whose alleged professional misconduct is the subject of the inquiry of its determination under subsection (1).

Part VIII – MISCELLANOUS

35. Staff and protection of the Examination Board from liability

(1)The Examinations Board may each engage and employ such persons as are necessary for the discharge of their respective functions under this Act.

(2)No liability shall attach to the Examinations Board or to any of their respective members, employees or agents for any loss or damage sustained by any person as a result of any act or omission done or made in good faith and without negligence in the performance or exercise or the intended performance or exercise of any duty or power imposed or conferred by or under this Act.

36. Terms and conditions of employment of staff

The terms and conditions of employment of staff employed under section 35 shall be as may be determined by the Examinations Board.

37. Funds of the Institute

The funds of the Institute shall consist of—

(a)monies payable to the Institute under this Act;

(b)subscription fees;

(c)donations, gifts and endowments from lawful sources; and

(d)grants.

38. Funds of the Examination Board

The funds of the Examination Board shall consist of—

(a)monies allocated to the Board from the subscription fees paid to the Institute;

(b)examination fees levied by the Institute against any person who applies to sit for an examination administered by the Examinations Board;

(c)donations, gifts and endowments from lawful sources; and

(d)grants.

39. Offences

(1)A person who—

(a)assumes or uses the title or designatory letters referred to in section 4 (2)(a) and who is not a Fellow of the Institute;

(b)assumes or uses the title or designatory letters referred to in section 4 (2) (b) and who is not a member of the Institute; or

(c)assumes or uses the title Associate Member of the Institute but is not an associate member of the Institute;

commits an offence.

(2)A corporate body (whether incorporated in Kenya or elsewhere) which falsely uses any of the titles or designatory letters referred to in section 4 (2)(a) or 4 (2)(b) commits an offence.

(3)Where a firm uses the title or designatory letters referred to in section 4 (2) (a) or 4 (2) (b) while each of the partners in the firm are entitled to use the title or designatory letters, each of the partners of the firm commits an offence.

(4)A person who commits an offence under this section is liable on conviction, to a fine not exceeding one hundred thousand shillings, and, in the case of a continuing offence, to a further fine not exceeding ten thousand shillings for each day on which the offence continues.

40. Vacancy in membership

The Council, the Registration Committee or the Examinations Board may exercise and perform their functions notwithstanding any vacancy among the members and the validity of any proceedings of the Council, the Registration Committee or the Examinations Board shall not be affected by any such vacancy or any defect in the appointment of a member.

Part IX – PROVISIONS ON DELEGATED POWERS

41. Transitional provision

(1)After the expiration of twelve months or such longer period as the Cabinet Secretary may declare, by notice in the Gazette after the commencement of this Act, no person shall practice as an Insurance Professional unless he or she is a holder of a practising certificate that is in force.

(2)Any person who contravenes subsection (1) commits an offence and is liable to a fine not exceeding fifty thousand shillings or imprisonment for a period not exceeding six months.

(3)The Cabinet Secretary, in consultation with the Institute, shall, in the notice under subsection (1), prescribe the procedure for obtaining a practising certificate to be followed by insurance professionals who were in practice on the date of the commencement of this Act.

42. Regulations

(1)The Cabinet Secretary may make regulations for the better carrying out of the provisions of this Act.

(2)Without prejudice to the generality of subsection (1), the regulations may provide for —

(a)the form and method of keeping registers and other records under this Act;

(b)procedure and fees for registration of members of the Institute;

(c)a detailed scheme outlining procedures for qualification, issuing and revocation of practising certificates under this Act;

(d)a detailed scheme or code of conduct and ethics specifying acts that amount to professional misconduct in addition to those specified under this Act;

(e)a detailed scheme specifying academic qualifications for registration as a professional;

(f)a detailed scheme outlining procedures for qualification, issuing and revocation of a license to operate as a professional;

(g)a detailed scheme specifying for the limits of professional liability;

(h)a detailed scheme specifying for the limits of professional indemnity;

(i)a detailed scheme specifying disciplinary process, disciplinary mechanisms and sanctions for professional misconduct;

(j)the forms and fees to be prescribed for purposes of this Act;

(k)the form and method of conducting any inspection, assessment, evaluation, examination or regulation required under this Act; and

(l)the membership rights of different categories of members of the Institute.

FIRST SCHEDULE (s. 7)

THE INSTITUTE

CHAIRPERSON OF THE COUNCIL

1.Tenure of office

(1)The Chairperson shall be elected during the annual general meeting of the Institute.

(2)Unless he or she earlier vacates the office, a person elected to the office of Chairperson shall hold the office until another Chairperson is elected.

(3)A person elected as Chairperson in subsection (1) shall hold office for a term of three years renewable once.

(4)A person who holds the office of Chairperson may resign from the office by writing under his or her hand delivered to the Council.

2.Vacancy in office of Chairperson

(1)When the Chairperson vacates office through resignation or otherwise, the Vice-Chairperson will hold office until the next Annual General meeting.

(2)In a case where the Vice-Chairperson is unable to take office, the Council shall appoint a person to act as Chairperson.

MEETINGS OF THE INSTITUTE

3.Subject to paragraph 4 of this Schedule, an annual general meeting of the Institute shall be held not later than six months after the end of each year.

4.A special general meeting of the Institute may be held—

(a)at any time; and

(b)on a written request made to the Council and signed by not less than one hundred members of the Institute.

5.A meeting of the Institute shall be convened by the Council by giving to every member of the Institute a written notice—

(a)stating the place and time of the meeting; and

(b)indicating the business which it is proposed to transact at the meeting, which shall include, among other matters, the presentation of the following—

(a)a report by the Council covering the past year;

(b)financial statements and the auditor’s report thereon;

(c)election of the Chairperson and Council members; and

(d)the appointment of the auditor.

(2)Notice of a meeting shall be given not less than fourteen days before the date on which it is to be held to each member of the Institute by posting the notice to the address of the member last known to the Institute, or by handing the notice to the member in person.

(3)The validity of any proceedings of the Institute shall not be affected by any failure to comply with the requirement of sub-paragraph (2) of this paragraph unless it is proved that the failure to comply in relation to any member was a deliberate failure.

(1)The Chairperson shall preside at all meetings of the Institute at which he or she is present.

(2)At a meeting of the Institute at which the Chairperson is not present, the Vice-Chairperson shall preside.

(3)At a meeting of the Institute at which neither the Chairperson nor the Vice-Chairperson are present, the members of the Institute present shall elect one of their members to preside.

(1)Subject to this paragraph, the quorum at a meeting of the Institute shall be at least thirty percent of the total membership of the Institute.

(2)Where a general meeting of the Institute is convened—

(a)otherwise than pursuant to paragraph 4(b) of this Schedule, and a quorum is not present when the meeting proceeds to business, the meeting shall stand adjourned until the same day on the following week, at the same time and place, and if a quorum is not present at or within fifteen minutes after that time, the members present shall constitute a quorum; or

(b)pursuant to paragraph 4(b) of this Schedule, and a quorum is not present when the meeting proceeds to business the meeting shall be dissolved.

(1)No business shall be transacted at a meeting of the Institute unless—

(a)the business is indicated in the notice of the meeting as business which it is proposed to transact; or

(b)in the case of business not so indicated, the meeting decides to transact the business and the person presiding at the meeting agrees to the transaction of the business.

(2)Minutes of the proceedings at meetings of the Institute shall be kept in such a manner as the Chairperson or in his or her absence the person presiding at a particular meeting, directs.

9.The person presiding at a meeting of the Institute may adjourn the meeting from time to time and from place to place, with the consent of the meeting.

10.The person presiding at a meeting of the Institute may in his or her discretion limit the number of persons permitted to speak in favour of or against any motion and the time any such person may so speak.

11.

(1)Questions arising at a meeting shall be determined by a majority of the members of the Institute voting on the question.

(2)Voting on any question shall be by a show of hands, unless before the declaration of the result of the voting on a show of hands, a ballot is demanded—

(a)by the person presiding at the meetings; or

(b)by at least twenty per cent of the members of the Institute present, in which event the question shall be determined by a ballot taken in such manner as the person presiding at the meeting directs.

(3)Where a ballot is held, voting may be either done personally or by written proxy.

(4)An instrument appointing a proxy shall be in writing and shall be deposited with the Secretary to the Council not less than forty-eight hours before the meeting of the Institute at which it is to be used.

(5)A proxy to be used in any ballot at any meeting may be used at the meeting or, if the meeting is adjourned, in any ballot when the meeting is resumed after the adjournment, but the holding of a proxy shall not be counted towards the quorum at any stage of any meeting.

(6)The person presiding at a meeting of the Institute has a deliberative vote, and, in the event of an equality of votes, also has a casting vote.

(7)A declaration by the person presiding at a meeting of the Institute that a resolution has or has not been carried and an entry to that effect in the minutes of the meeting is evidence of that fact.

12.Meetings of the Council

(1)The Chairperson of the Council shall convene ordinary meetings of the Council not less than four times in every financial year and not more than four months shall elapse between the date of one meeting and the date of the next meeting.

(2)Notwithstanding subparagraph (1), the Chairperson may, and upon requisition in writing by at least five members, convene a special meeting of the Council at any time for the transaction of the business of the Council.

(3)Unless three quarters of the total members of the Council otherwise agree, at least fourteen days’ written notice of every meeting of the Council shall be given to every member of the Council.

(4)The quorum for the conduct of the business of the Council shall be seven members.

(5)The Chairperson shall preside at every meeting of the Council, or in his or her absence the Vice Chairperson shall preside, and he or she shall, with respect to that meeting and the business transacted there at, have all the powers of the Chairperson.

(6)In the event of the absence of both the Chairperson and the Vice Chairperson, the members present shall elect one of their members to preside, and the person so elected shall with respect to that meeting and the business transacted there at, have all the powers of the Chairperson.

(7)Unless a unanimous decision is reached, a decision on any matter before the Council shall be by a majority of the votes of the members present and voting and in the case of an equality of votes, the Chairperson or the vice-person or the person presiding shall have a casting vote.

(8)Subject to subparagraph (4), no proceedings of the Council shall be invalid by reason only of a vacancy among the members thereof.

(9)Subject to the provisions of this section, the Council may determine its own procedure and the procedure for any committee of the Council and for the attendance of other persons at its meetings and may make rules in respect thereof.

THE COUNCIL-MEMBERSHIP OF THE COUNCIL

13.Each of the seven members of the Council (one of whom shall be the Vice-Chairperson) referred to in section 6 of this Act shall be elected at an annual general meeting of the Institute.

14.Subject to section 6 of this Act, a member of the Council—

(a)elected pursuant to paragraph 13 of this schedule;

(b)appointed pursuant to section 6(d) of this Act; or

(c)co-opted in accordance with this Act;

shall hold office for a period of three years and may be re-elected or re-appointed to a further term of three years.

15.

(1)Subject to paragraph 17 of this Schedule, where a member of the Council (including a member co-opted pursuant to paragraph 14(c)) ceases to hold office before the expiration of the prescribed period or otherwise than under the provisions of paragraph 17 of this Schedule (where applicable), the Council may co-opt a person to hold that office.

(2)Paragraph 17 does not apply to the members of the Council appointed pursuant to section 9 of this Act.

(3)In this sub-paragraph, the “prescribed period” means—

(a)in relation to a member referred to in paragraph 14 (a), the period beginning with their election and ending at the commencement of the day on which the third annual general meeting after his or her election is to be held;

(b)in relation to a member referred to in paragraph 14 (b), the period of three years next following their appointment; or

(c)in relation to a member referred to in sub-paragraph 14 (c), the period beginning with their being co-opted and ending at the commencement of the day on which the first annual general meeting after their being co-opted is to be held.

16.Of the seven members of the Council (including the Vice-Chairperson) first elected by the Institute after the commencement of this Act—

(a)three (identified by agreement of the members of the Council or by lot) shall cease to hold office at the commencement of the day on which the fourth annual general meeting of the Council is to be held, save in the case of any such who earlier ceases to hold office;

(b)two (so identified) shall cease to hold office at the commencement of the day on which the third annual general meeting of the Council is to be held, save in the case of any such member who earlier ceases to hold office; and

(c)the remaining two members shall cease to hold office at the commencement of the day on which the fourth annual general meeting of the Council is to be held, save in the case of any such member who earlier ceases to hold office.

17.An office of a member of the Council shall become vacant if such member resigns from office by writing under their hand delivered —

(a)in the case of the members appointed pursuant to section 6 (d), to the Cabinet Secretary; or

(b)in the case of any other member, to the Council;

18.

(1)Subject to paragraph 17 of this Schedule, where a member of the Council ceases to hold office, another member shall be elected to fill the vacancy at the annual general meeting of the Institute next following, or shall be appointed by the Cabinet Secretary, as the case may be.

(2)A member of the Council who ceases to hold office other than under paragraph 17 is eligible for re-election or re-appointment.

19.Paragraphs 14, 15, 16 and 17 do not apply to the Chairperson.

VICE-CHAIRPERSON OF THE COUNCIL

20.

(1)There shall be a Vice-Chairperson of the Council who shall be elected by the Council from amongst the members of the Council elected under section 6 of this Act.

(2)The Vice-Chairperson shall hold office for the period of one year immediately following their election to the office or, if they cease to hold office as a member of the Council before then, until they so cease to hold office.

(3)Subject to paragraph 1 of this Schedule, the Vice-Chairperson may exercise and perform the functions of the Chairperson if the Chairperson is unable to exercise and perform those functions.

SECOND SCHEDULE (s. 13)

THE REGISTRATION COMMITTEE

(1)A member of the Registration Committee shall hold office for a period of three years unless he or she earlier ceases to hold office.

(2)A member of the Registration Committee may resign from office by writing under his or her hand to the Council.

(3)A member of the Registration Committee who ceases to hold office at the end of the prescribed term is eligible for re-appointment.

CHAIRPERSON AND VICE-CHAIRPERSON OF REGISTRATION COMMITTEE

(1)The Council shall appoint from amongst the members of the Registration Committee a Chairperson and a Vice-Chairperson of the Committee

(2)The Chairperson and the Vice-Chairperson of the Registration Committee shall hold office as members of the Registration Board until they resign from office under sub-paragraph (3).

(3)The Chairperson and a Vice-Chairperson of the Registration Committee may resign by writing under their hand addressed to the Council.

PROCEEDINGS

3.The quorum for meetings of the Registration Committee shall be four.

4.The person presiding at a meeting of the Registration Committee has a deliberative vote, and, in the event of any equality of votes, also has a casting vote.

5.Minutes of the proceedings of the Registration Committee shall be kept in such manner as the Committee directs.

THIRD SCHEDULE (s.16)

THE EXAMINATIONS BOARD

MEMBERS OF THE EXAMINATIONS BOARD

(1)A member of the Examinations Board shall hold office for the period of two years following his or her appointment and shall be eligible for re-appointment, unless he or she earlier ceases to hold office.

(2)The office of a member of the Examinations Board shall become vacant if such member—

(a)resigns from office by writing under their hand delivered to the Cabinet Secretary;

(b)has the appointment revoked by the Cabinet Secretary or ceases to hold the office.

CHAIRPERSON AND VICE-CHAIRPERSON OF EXAMINATIONS BOARD

(1)The Cabinet Secretary shall appoint from amongst the members of the Examinations Board a Chairperson and Vice Chairperson of the Board.

(2)The Chairperson and the Vice-Chairperson of the Examinations Board shall hold office until they cease to hold office as members of the Examinations Board or until they resign from office under sub-paragraph (3) of this paragraph.

(3)The Chairperson or the Vice-Chairperson of the Examinations Board may resign from office, by writing under their hand addressed to the Cabinet Secretary.

(4)The Vice-Chairperson may exercise any of the functions of the Chairperson if the Chairperson is unable to exercise and perform those functions.

PROCEEDINGS

3.The quorum at meetings of the Examinations Board and the arrangements relating to meetings shall be such as the Examinations Board may determine.

4.The person presiding at a meeting of the Examinations Board has a deliberative vote, and, in the event of an equality of votes, also has a casting vote.

5.Minutes of the proceedings of the Examinations Board shall be kept in such manner as the Board directs, and, on the written request of the Cabinet Secretary shall be made available to any person nominated by the Cabinet Secretary.

FOURTH SCHEDULE (s. 32 (2))

DISCIPLINARY COMMITTEE PROCEEDINGS OF INQUIRY

(1)The Council shall cause a statement to be prepared setting out the allegation of professional misconduct to be investigated by the Disciplinary Committee.

(2)The Secretary to the Council shall transmit to each member of the Disciplinary Committee and to the person whose conduct is the subject of investigation a copy of the statement prepared pursuant to sub-paragraph (1) of this paragraph.

(1)The Secretary to the Council shall give notice of the first date, time and place fixed for the inquiry to the person whose conduct is the subject of investigation.

(2)Every such notice shall, at least fourteen days, before the first date fixed for the inquiry, be delivered to the person whose conduct is the subject of investigation by hand or be sent to him or her through the post by registered letter addressed to their address last known to the Council.

(3)Where a person whose conduct is the subject of investigation fails to appear either personally or by their advocate at the time and place fixed in the notice served on them, the inquiry may proceed in their absence.

(4)Notice of the adjournment of an inquiry shall be given to the person whose conduct is the subject of investigation in such manner as the Disciplinary Committee determines.

(1)A person whose conduct is the subject of investigation may appear at the inquiry either personally or by their advocate.

(2)The Institute may appear at the inquiry through an advocate, for the purposes of the conduct of the inquiry by the Disciplinary Committee.

(1)For the purpose of the conduct of the inquiry the Disciplinary Committee has power—

(a)to administer oaths;

(b)to summon persons to attend and give evidence;

(c)to order the production of relevant documents, including court judgements; and

(d)to recover in whole or in part, the costs of the inquiry not exceeding one hundred thousand shillings from any or all the parties involved in the proceedings.

(2)An oath may be administered by any member of the Disciplinary Committee or by the Secretary to the Council.

(3)Notices, orders and summonses of the Disciplinary Committee shall be issued under the hand of the Secretary to the Council.

(1)Subject to this Schedule—

(a)the procedure to be followed is within the discretion of the Disciplinary Committee; and

(b)the Disciplinary Committee is not bound by the rules of evidence.

(2)Unless the Disciplinary Committee otherwise determines, the proceedings on the inquiry shall be held in camera.

(3)The Secretary to the Council shall keep or cause to be kept, a record of the proceedings on the inquiry.

(1)The decision of the Disciplinary Committee on the inquiry is that of the majority of the members present and voting for the purpose of making a decision.

(2)For the purposes of making the decision on the inquiry every member of the Disciplinary Committee has one vote, and, in the event of an equality of votes, the Chairperson of the Disciplinary Committee also has a casting vote.

7.The validity of proceedings of the inquiry is not affected by any vacancy among the members of the Disciplinary Committee or any defect in the appointment of a member.

(1)A person served with a summons to appear as a witness at the inquiry who, without reasonable excuse fails to attend as required by the summons, is guilty of an offence.

(2)A person convicted of an offence under this paragraph is liable on conviction to a fine not exceeding twenty thousand shillings.

(1)A member of the Disciplinary Committee has, in the performance of their duty as a member, the same protection and immunity as a judge.

(2)A person appearing before the Disciplinary Committee at the inquiry on behalf of the person whose conduct is the subject of investigation has the same protection and immunity as an advocate has in appearing for a party in proceedings in the High Court.

(3)A person summoned to attend or appearing before the Disciplinary Committee as a witness at the inquiry has the same protection, and is, in addition to the penalties provided in this Schedule, subject to the same liabilities, in any civil or criminal proceedings, as a witness in proceedings in the High Court.

10.Proceedings on the inquiry shall be deemed to be judicial proceedings for the purposes of Chapter XI of the Penal Code (Cap. 63).

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History of this document

04 July 2025

Commenced

20 June 2025 this version

Published in Kenya Gazette

17 June 2025

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1.	Kenya Gazette Vol. CXXVII-No. 206