Historical Development of Insurance Legislation in Kenya
UNIVERSITY OF NAIROBI SHOOL OF LAW
INSURANCE LAW ASSIGNMENT
3/10/2014
PART A: HISTORY OF INSURANCE LEGISLATION IN KENYA
The notion of insurance in Kenya can be traced back to the “social insurance programme” which for a long time has been around Africa. However, the history of the development of commercial insurance in Kenya is closely related to its colonial heritage.
Like some African and other developing countries, there was no specific insurance legislation in Kenya until 1960, when the Insurance Ordinance of that year was promulgated. Prior to the Ordinance, insurance companies had to comply only with the Companies Act. Moreover; the law relating to insurance had to be gleaned from provisions of a number of scattered statutes owing to lack of sector-specific legislation. Among such laws is government directives issued in 1978 by the Minister for Finance, which is also critical to the historical development of insurance legislation in the country. These directed that all insurance companies operating in the country had to seek local incorporation and that all imports into the country had to be insured locally, while reinsurance treaties arranged by local companies should be reviewed and approved by Kenya Reinsurance Corporation, as the office of the supervisory authority had not been established.1
Thereafter; Kenya like other emerging nations in Africa realized that there was need to introduce legislation on insurance to guide the growth of the industry and make it relevant to the national economy. Thus; the Insurance Act, Chapter 487 of the Laws of Kenya, was enacted in 1984 to amend and consolidate laws relating to insurance. It became operational in 1987. Since then; it has been an effective instrument for regulating the insurance industry, being complemented by the Workmen's Compensation Act (Cap 236)
INSURANCE LAW ASSIGNMENT
3/10/2014
PART A: HISTORY OF INSURANCE LEGISLATION IN KENYA
The notion of insurance in Kenya can be traced back to the “social insurance programme” which for a long time has been around Africa. However, the history of the development of commercial insurance in Kenya is closely related to its colonial heritage.
Like some African and other developing countries, there was no specific insurance legislation in Kenya until 1960, when the Insurance Ordinance of that year was promulgated. Prior to the Ordinance, insurance companies had to comply only with the Companies Act. Moreover; the law relating to insurance had to be gleaned from provisions of a number of scattered statutes owing to lack of sector-specific legislation. Among such laws is government directives issued in 1978 by the Minister for Finance, which is also critical to the historical development of insurance legislation in the country. These directed that all insurance companies operating in the country had to seek local incorporation and that all imports into the country had to be insured locally, while reinsurance treaties arranged by local companies should be reviewed and approved by Kenya Reinsurance Corporation, as the office of the supervisory authority had not been established.1
Thereafter; Kenya like other emerging nations in Africa realized that there was need to introduce legislation on insurance to guide the growth of the industry and make it relevant to the national economy. Thus; the Insurance Act, Chapter 487 of the Laws of Kenya, was enacted in 1984 to amend and consolidate laws relating to insurance. It became operational in 1987. Since then; it has been an effective instrument for regulating the insurance industry, being complemented by the Workmen's Compensation Act (Cap 236)