A surge in insurance fraud is rattling Kenya’s fast-growing insurance sector, with newly released industry data showing a near threefold increase in reported cases in just one year, raising fresh concerns over systemic vulnerabilities and weak enforcement.
Data from the Insurance Regulatory Authority (IRA) reveals that 82 fraud cases were reported in the fourth quarter of 2025, up sharply from just 29 cases recorded in a similar period the previous year.
The spike comes at a time when the industry is expanding rapidly, with total premiums hitting Sh464.7 billion.
Fake motor certificates top fraud list
Investigations point to fake motor vehicle insurance certificates and document forgery as the most rampant forms of fraud.
IRA data shows fake motor insurance certificates jumped from 4 to 20 cases, forgery cases rose from 3 to 20 and fraudulent accident and injury claims increased to 15 cases
Authorities say fraud is no longer limited to rogue individuals but now involves well-coordinated networks, including agents, insiders, and external accomplices.
Cases reported include theft by insurance agents and employees, fraudulent medical and funeral claims and unlicensed individuals posing as insurance intermediaries
In several instances, suspects have already been arrested and arraigned in courts across the country, including in Nairobi, Embu, Kisii, and Kerugoya, pointing to a nationwide problem.
The fraud wave is emerging even as insurers grapple with rising claims and tightening margins.
General insurers paid out Sh107.97 billion in claims in Q4 2025, with medical and motor classes accounting for the bulk of payouts.
The regulator also reported 524 complaints from policyholders during the same period, with delays in claims settlement and disputes over compensation among the leading grievances.
Trident in the complaints spotlight
While the IRA report aggregates much of the complaints data, it flags a concentration of grievances among a cluster of insurers, including Trident Insurance Company Limited, which has faced persistent customer concerns in recent reporting cycles.
Trident was among firms excluded from parts of the performance analysis due to non-compliance with reporting requirements, raising further regulatory concern over transparency and operational oversight.
