(NAIROBI, Kenya) – Reported insurance fraud cases in Kenya rose 48.6% in the first quarter of 2026, driven mainly by internal theft and organised schemes rather than document forgery on the street. Data from the Insurance Regulatory Authority show the Insurance Fraud Investigation Unit recorded 52 cases between January and March, compared to 35 in the same period of 2025.
The rise in deception came as total claims costs increased across the industry. General insurance incurred claims grew 9.5% to KSh 28.26 billion (about $218 million or £172 million), up from KSh 25.80 billion in the first quarter of 2025. Medical and motor policies together made up 86.7% of those claims.
Life insurance payouts moved up 5.0% to KSh 32.45 billion (roughly $250 million or £198 million), from KSh 30.92 billion a year earlier. The microinsurance segment saw claims costs jump 121.9%, rising to KSh 259.47 million (around $2 million or £1.58 million) from KSh 116.92 million. That pushed the microinsurance loss ratio to 56.5%.
A structural shift was evident in how fraud is carried out. Cases of intermediaries diverting client premiums surged from 2 in the first three months of 2025 to 17 in early 2026. Theft by insurance company employees, which had no cases in the prior period, accounted for 3 cases. Uncategorised fraud, including bad cheques and conspiracy, rose from zero to 18 cases. Forgery incidents moved from 3 to 5.
Traditional street level scams fell sharply. Fake motor insurance certificates dropped from 8 cases to zero. Fraudulent motor accident, theft and injury claims declined from 7 to 5. Double registration cases fell from 3 to 1, and impersonation cases dropped from 2 to 1.
Several suspects have been arraigned in courts in Nairobi, Mombasa, Kwale, Nyeri and Shanzu.