While GIIF has promoted private sector approaches in Kenya and helped thousands of farmers get access to index insurance (See Kilimo Salama), the development of index-insurance is still facing several legal and regulatory constraints. Indeed, during a stakeholder workshop that the GIIF Team held with Syngenta Foundation and the International Livestock Research Institute, GIIF grantees stressed the need to address overly restrictive regulations which are proving to be a major constraint to the development of micro-insurance and index insurance markets. These include restrictions on distribution channels, the cap on commissions and administrative expenses and the absence of tax incentives.

 

GIIF has been providing legal and regulatory assistance to IRA so as to address overly restrictive regulations that are considered constraints to the development of microinsurance and index insurance markets. GIIF also participated in the drafting of the new Insurance Act. The new insurance law (bill 2015) was completed and is currently before the Kenyan Parliament. Following the completion of the Insurance Act, GIIF supported the authority in the development of a new legal and regulatory framework for microinsurance (MI) and index based insurance (II). Both Mi and II regulations were drafted and are awaiting gazettement by the Minister.