Wamuzi News Ke
In a dramatic and uncompromising action, the Insurance Regulatory Authority (IRA) has stripped 20 insurance brokerage firms of their licenses, immediately banning them from conducting business nationwide. The decisive move raises alarm in Kenya’s insurance sector and delivers a stark warning to policyholders.
The deregistration, effective June 30, was formally confirmed in a notice published Friday by the IRA under Section 196(A) of the Insurance Act. Despite the sweeping nature of the crackdown, regulators have stopped short of disclosing specific infractions.
Included among the delisted are prominent names such as African Continent Insurance Brokers Limited, Andalus Insurance Brokers Limited, Allied Insurance Brokers Limited, Alpha-Levits Insurance Brokers Limited, Arkchoice Insurance Brokers Limited, and Berkley Insurance Brokers Limited. The full tally also lists Bilan, Blossom, Fides, Harbinger, Homeland, Ibsa, Khushal, Masumali Meghji, Nexus, Online, Real Alliance, Solian, and Swinton Insurance Brokers Limited.
The authority’s terse statement advises all stakeholders that these firms “ceased transacting insurance business with effect from June 30, 2025,” as officially recorded in the Kenya Gazette on July 18, 2025.
This stringent enforcement suggests a broader effort to uphold industry integrity and guard consumer interests. Possible grounds for deregistration vary widely: non-compliance with legal obligations, failure to maintain adequate capital, unreported mergers or acquisitions, and neglect of premium remittance duties. However, ambiguity remains—the IRA withheld detailed reasons for removing these brokers from the market.
The ramifications are immediate. Brokers typically bridge clients and insurers: policyholders now risk being left without critical coverage safeguards. The IRA has issued an urgent alert to the public, stressing that engaging with any of the listed brokers constitutes illegal practice with no protections under existing insurance frameworks.
Industry experts are bracing for fallout. A sudden deregistration shocks the competitive landscape, displaces staff, and could shake consumer confidence in intermediary services. Insurers underwriting business through the affected firms may now face contract lapses and increased claims risk.
This crackdown aligns with IRA’s recent stay on deregistration mechanisms—regulators appear laser-focused on purging underperforming and opaque intermediaries. The blanket removal of twenty firms signals a zero-tolerance stance.
What Happens Now?
- Policyholders must immediately verify their broker’s active license and consider transferring arrangements to secure firms.
- Brokers not on the list are under scrutiny; regulatory compliance cannot be assumed.
- Insurers may need to reconfigure distribution networks and reassess risks tied to broker failures.
As the dust settles, all eyes will be on the IRA for clarity. Will they reveal the precise legal failures prompting this mass deregistration? And what repercussions await the brokers—fines, litigation, or asset seizure?
The IRA’s sweeping deregistration reshapes Kenya’s insurance brokerage ecosystem overnight. With accounts frozen and consumer trust shaken, this is a sector poised on unstable ground—awaiting both clarity and recovery.
