ADVOKS GLOBAL · KENYA
Insurance Act
69. Directors, managers, employees and their remuneration
Edition: 2023-12-11 · In force
69. Directors, managers, employees and their remuneration
(1)Subject to subsection (2), no insurer shall be directed or managed by, and no insurer shall employ in any capacity, a person whose remuneration or any part thereof takes the form of commission or bonus or of a share in the valuation surplus in respect of long term insurance business.(2)The prohibition contained in subsection (1) shall not apply to the employment of agents or brokers, or to the employment of persons who share in the profits of general insurance business by way of bonus payments or otherwise.(3)A managing director or employee of an insurer shall not be a managing director or employee of another insurer or of a bank or financial institution.(4)After the expiry of two years from the appointed date no agent, and where the agent is a company or firm, no managing or other director of an agent, and no broker, or managing or other director of a broker shall—(a)be appointed or continue as a director of an insurer licensed under this Act;(b)directly or indirectly acquire or hold more than one per cent of the shares or controlling interest in an insurer licensed under this Act.(5)After the expiry of two years from the appointed date, no insurer and no director or employee of an insurer shall directly or indirectly hold shares in or have any other financial or controlling interest in the affairs of an agent or broker.(6)A person who contravenes the provisions of this section shall be guilty of an offence and liable to a fine not exceeding five thousand shillings, and if the offence is a continuing one, to a further fine of one hundred shillings for every day during which the offence continues.