Lawyer sues IRA over cancelled insurance policies
A Nairobi-based lawyer has moved to the High Court of Kenya seeking to overturn a decision by the Insurance Regulatory Authority (IRA) to place three insurance firms under statutory management and invalidate their existing policies before expiry.
In a petition filed before the court, Christopher Njoroge Kimiti challenges the regulator’s March 10, 2026 directive affecting Trident Insurance Company Ltd, KUSCCO Mutual Assurance Ltd and Corporate Insurance Company Ltd.
Kimiti argues that while the IRA has the mandate to regulate the insurance sector and protect policyholders, its decision to invalidate active insurance policies and compel clients to seek alternative cover was unlawful, irregular and not made in good faith.
According to the lawyer, the directive has far-reaching consequences, affecting not only him but potentially millions of policyholders across the country.
“The IRA has a statutory duty to protect policyholders, but demanding that they immediately take up new covers from other insurers is not in their best interest,” he states in court documents.
The regulator, in a public notice issued on March 10, confirmed that the three underwriters had been placed under statutory management and advised all policyholders to secure alternative insurance from licensed providers without delay.
However, Kimiti contends that the move violated multiple constitutional rights, including the right to property, consumer rights, economic and social rights, as well as the right to fair administrative action.
He further argues that the IRA overstepped its authority by interfering with private contracts between insurers and policyholders, noting that the agreements were entered into lawfully when the companies were duly licensed.
“The respondent is not privy to the contract between the petitioner and his insurer and therefore lacks the legal capacity to invalidate existing contracts,” he argues.
Kimiti recounts a personal ordeal that prompted the petition, stating that he held a valid motor vehicle insurance policy with Trident Insurance Company Ltd but was unaware it had been invalidated.
He says he only learned of the directive on March 13 when he was stopped by a traffic police officer and accused of driving without valid insurance. The situation forced him to plead for leniency and subsequently purchase temporary cover from another insurer.
The lawyer argues that the abrupt cancellation of policies without prior notice exposed him and other policyholders to legal risks, financial losses and potential liability, despite having complied with all contractual obligations.
He now wants the court to issue orders compelling the National Police Service, under Inspector General Douglas Kanja, to recognize the affected insurance policies as valid until their expiry dates or until a formal court-sanctioned winding-up process is concluded.
Additionally, Kimiti is seeking a declaration that the IRA’s directive is unconstitutional, arguing that it unfairly imposes a double financial burden on policyholders by forcing them to pay for new insurance cover without compensation.
“A declaration that the directive is irrational, unreasonable and unconstitutional to the extent that it seeks to vary private contracts and impose additional financial obligations without due process,” he states.
