MPs' consider petition on failure by Regulatory Authority to protect transport operators from unjust insuarance claims 

Thursday, 17th April, 2025
Parliament Buildings

The National Assembly Public Petitions Committee, chaired by Vihiga MP Hon. Kavai Kagesi, convened today to deliberate on a petition alleging the Insurance Regulatory Authority (IRA) has failed to protect public transport operators in matters concerning insurance claims.

The petition, presented to Parliament by Machakos MP, Hon. Caleb Mule on behalf of the Machakos Matatu Owners Association (MAMOA), raises serious concerns about three insurance providers namely, INVESCO, AMACO, and Directline Insurance that are accused of persistently refusing to honor valid claims submitted by matatu operators.

According to the petitioner, the affected operators have consistently complied with all policy requirements, including the timely and full payment of insurance premiums. Despite this, the insurers have allegedly defaulted on their obligations, leaving thousands of operators financially vulnerable.

The petition further avers that approximately 4,000 public service vehicles operating in Kenya’s Lower Eastern region are embroiled in court cases stemming from road accidents. The insurance firms in question are accused of failing to provide legal representation for these cases, a lapse that has reportedly led to costly court rulings against the operators.

Describing the situation as causing “significant and irreparable harm,” the petitioner is urging the committee to intervene and ensure accountability from both the insurers and the regulator.

“Honourable Chair, these Insurance firms are ripping off Matatu Owners,” stated Hon Mule.

Further adding “Some are charging third Party Insurance Policies for as low as two thousand shillings annually, knowing very well that they are not going to pay, in the case of an accident.”

Mr. Kushian Muchiri, CEO of the Federation of Public Transport Sector, who had accompanied Hon Mule on his part noted.

“We are here simply because the industry's governing laws are being ignored, leading to the extortion of Matatu owners through fictitious claims, and no one to protect us.”

In his prayers the petitioner calls on the committee to urgently intervene to resolve the outstanding accident claims lodged with INVESCO, AMACO, and Directline Insurance and that the IRA establishes and strictly enforces comprehensive standards of conduct for all insurance companies operating in Kenya.

“Hon Members, these insurance agencies must be made to honour all outstanding and legitimate claims. The public transport sector plays a vital role in the day to day functioning of this country as well as for revenue generation and as such must not continue to be exploited,” prayed Hon. Mule

The Committee is now expected to review the petition and investigate on the matter by inviting the concerned parties before it to give submissions before tabling its report on the floor of the House

The Committee gave its undertaking that would take up the matter with the seriousness and urgency that it deserved with Committee Chairperson, Hon Kavai Kagesi stating, “This is a very serious matter that this Committee will give all the due attention,” 

“We shall summon the representatives from the Insurance Regulatory Authority and the aforementioned insurance companies to provide further clarification and address the serious concerns raised by the public transport operators,” Hon. Kagesi further pledged.