Kenya’s insurance industry and law enforcement agencies have intensified operations against fraudulent motor insurance certificates, uncovering 44 cases across two regions as regulators seek to protect consumers and reinforce compliance in a digitising sector.
Kenya’s insurance sector has stepped up enforcement against fraudulent motor insurance certificates following the detection of 44 cases across the Central and Coast regions over the past year, highlighting ongoing compliance challenges even as digital verification systems expand nationwide.
The operations were conducted through a joint initiative involving the Association of Kenya Insurers (AKI), the Traffic Police Department, the Insurance Regulatory Authority, and the Insurance Fraud Investigation Unit, reflecting a coordinated industry-regulator approach to tackling insurance fraud.
Industry officials say the continued emergence of forged certificates poses financial, operational, and consumer protection risks within Kenya’s motor insurance market, which remains one of the most widely held insurance products in the country.
Central region operation reveals majority of cases
The first major enforcement exercise took place in June 2025 across the Central region, where authorities uncovered 27 instances of forged motor insurance certificates.
The operation, led by Commissioner of Police Anthony Muriithi, targeted motorists suspected of operating vehicles using falsified cover documents. Investigations subsequently led to prosecutions, with four cases already concluded in court.
Penalties imposed included fines ranging between Sh15,000 and Sh30,000, alongside custodial sentences of between four months and one year. The remaining cases continue to progress through the judicial system.
The findings underscored the persistence of fraudulent practices despite growing adoption of electronic verification systems designed to improve transparency and reduce manual documentation.
Coast region follow-up operation uncovers additional offences
A subsequent enforcement sweep conducted in December 2025 in the Coast region identified 17 further cases of forged certificates.
Three of these cases have been finalised, including one conviction resulting in a Sh200,000 fine or a two-year prison term, while two additional offenders were fined Sh50,000 or faced six months’ imprisonment.
Authorities said the outcomes reflect the seriousness with which courts are treating insurance fraud offences, particularly where motorists knowingly present falsified documents to law enforcement officers.
Digitisation improves access but fraud risks remain
The enforcement actions come against the backdrop of ongoing digitisation within the insurance sector, with AKI issuing digital motor insurance certificates to improve accessibility, verification speed, and record integrity.
However, industry stakeholders acknowledge that digital transformation alone has not eliminated fraud risks, particularly where criminals attempt to replicate or manipulate documentation outside official systems.
AKI Executive Director Tom Gichuhi said that while digital verification has strengthened oversight, continued enforcement remains essential to maintaining consumer protection and market confidence.
“Digitisation has significantly strengthened verification, but enforcement remains critical. Fraudulent motor insurance certificates offer no protection to motorists and undermine public confidence in the sector. We will continue working closely with law enforcement officers to protect consumers and uphold the integrity of the insurance industry,” he said.
Consumer and industry implications
Fraudulent motor insurance coverage presents multiple risks across the insurance ecosystem. For motorists, fake certificates provide no financial protection in the event of accidents, potentially exposing drivers to personal liability for damages and legal claims.
For insurers, the circulation of counterfeit documents erodes trust in insurance products and complicates claims verification processes, while also distorting industry data used for pricing and risk management.
More broadly, insurance fraud contributes to higher operational costs within the sector, which can ultimately influence premium pricing and affordability for legitimate policyholders.
Regulators and industry bodies have therefore positioned enforcement as a critical complement to digital innovation, ensuring that technological solutions translate into tangible compliance outcomes.
Technology-driven verification tools
As part of consumer protection efforts, AKI has developed multiple digital verification channels to enable motorists to confirm the authenticity of motor insurance cover in real time.
Motorists can check policy validity through a USSD service accessible via *352# or through the Bima Yangu App mobile platform, both of which connect to industry databases to provide confirmation of active policies.
The association has urged motorists to avoid purchasing insurance cover from unauthorised agents or brokers, noting that informal distribution channels remain a common entry point for fraudulent schemes.
Broader compliance strategy
AKI indicated that joint enforcement operations will continue across additional regions as part of a nationwide compliance strategy aimed at safeguarding the benefits of insurance digitisation.
The initiative also reflects increasing collaboration between industry associations, regulators, and law enforcement agencies to strengthen oversight within Kenya’s financial services sector.
The association, which represents 56 insurance companies and five reinsurance firms, plays a central role in industry advocacy, consumer awareness, research, and capacity building.
As Kenya advances financial sector digitisation and expands insurance penetration, stakeholders say sustained enforcement and public awareness will be critical to ensuring that technological progress is matched by improved consumer protection and market integrity.
