ADVOKS GLOBAL · KENYA
Insurance Act
32. Deposits
Edition: 2023-12-11 · In force
32. Deposits
(1)Subject to subsection (2), an insurer applying for license under this Act shall deposit and keep deposited with the Central Bank of Kenya (in this Part called "the Bank") in Kenya Government securities estimated at the market value of the securities on the day of deposit—(a)where the application is in respect of long term insurance business, a sum of five million shillings or five percentum of the total assets, whichever is higher;(b)where the application is in respect of general insurance business, a sum of five million shillings or five percentum of the total assets, whichever is higher;(2)Where an applicant under subsection (1) was carrying on insurance business immediately prior to the appointed date he may deposit with the Bank in Kenya Government securities a sum of one hundred and fifty thousand shillings in respect of long term business and a sum of fifty thousand shillings in respect of general business; and if the applicant is licensed he shall deposit annually thereafter further Kenya Government securities of the same amounts in respect of each of the two classes of business aforesaid, until the deposit reaches the value specified in subsection (1) for the class or classes of business for which the applicant is licensed.(3)If any part of a deposit made under this section is used in the discharge of any liability of the insurer, the insurer shall deposit such additional sum in securities (estimated at the market value of the securities on the day of deposit) as will make up the amount so used and, unless the deficiency is supplied within a period of two months from the date when the deposit or any part thereof is used for discharge of liabilities, the insurer shall be deemed to have failed to comply with the requirements of subsection (1).