The new year has started on a low footing for motorists in Kenya following a 50 percent increase in motor vehicle insurance premiums.

Owners of vehicles valued at less than Sh1 million will be the hardest hit in the new changes after insurance companies announced a minimum premium of Sh45,000.

According to the insurance companies, the increased insurance costs were necessitated by the increased number of claims following a rise in accidents.

High Court Declines to Suspend New  Premiums For Motor Vehicle Insurance

The Kenya Human Rights Commission (KHRC) moved to court to sue the Insurance Regulatory Authority (IRA) over the increased premiums saying it’s discriminatory and illegal as there was no public participation.

“The commission is seeking a declaration that the increase of premiums without public participation is illegal, null and void,” said KHRC Lawyer Kelly Malenya.

“Considering the mandatory nature of motor vehicle insurance, the planned increase is discriminatory, unjustified and illegal. “The said actions also amount to a violation of consumer rights and are punitive, insensitive and oppressive,” he said.

High Court Judge Justice Anthony Mrima, declined to suspend the planned premiums and instead certified the case filed by the Kenya Human Rights Commission (KHRC) as urgent and directed parties to appear for directions next week.

The increase in car insurance costs is the latest blow to Kenyans who are contending with tough economic times in the wake of the COVID-19 pandemic and an increasing cost of living amidst dwindling finances.