IRA chief executive Godfrey Kiptum /FILE
Insurance fraud cases in Kenya jumped by nearly 49 per cent in the first three months of 2026, with agent theft overtaking fake claims and forged documents as the industry's biggest crime.
Latest data shows that the Insurance Fraud Investigation Unit (IFIU) received 52 fraud cases during the January-March period, up from 35 cases reported during the same quarter last year.
According to the Insurance Regulatory Authority, cases were spread across the quarter, with 16 reported in January, 14 in February and the highest monthly tally of 22 cases recorded in March, an escalation in suspected fraudulent activity.
The surge comes at a time when Kenya's insurance sector is expanding rapidly.
Long-term insurers grew gross premiums by 36.3 per cent to Sh72.87 billion in the quarter, while general insurers collected Sh81.89 billion in premiums, increasing the industry's exposure to fraud risks as business volumes expand.
Data from the regulator shows that theft and stealing by insurance agents recorded the sharpest increase among all categories of insurance crime.
“Over the same period under review, there were arrests made on cases that investigations had been completed, and the suspects arraigned in court,” said IRA chief executive Godfrey Kiptum.
Cases linked to agents rose from just two incidents in the first quarter of 2025 to 17 cases in the same period this year, making the category the single largest contributor to reported fraud.
The figures point to growing concerns over intermediary oversight as insurers increasingly rely on agency networks to distribute products across the country.
Another major category was classified as "other frauds", including obtaining money by deception, conspiracy and bad cheque offences, which accounted for 18 cases, representing more than one-third of all reported fraud incidents during the quarter.
The category had recorded no cases during the same period last year. Forgery remained another significant threat, with reported cases increasing from three to five over the review period.
Similarly, fraudulent motor accident, theft and electrocution injury claims accounted for five reported cases, underlining the continued vulnerability of motor insurance, which remains Kenya's largest general insurance class.
The regulator also recorded three cases involving theft by insurance company employees, a category that had no reported incidents during the corresponding period last year.
“Other offences reported included one case each of double registration, impersonation, fraudulent goods-in-transit claims and complaints lodged against insurance companies,” added Kiptum.
Interestingly, several categories that had featured prominently in previous years disappeared completely from the regulator's fraud register during the quarter.
No cases were reported involving fake motor vehicle insurance certificates, obtaining money by false pretences, fraudulent funeral, medical or death claims, theft by servants, fraudulent work injury compensation claims, operating without licences or theft by advocates.
The disappearance of fake motor insurance certificates is particularly notable. The offence accounted for eight reported cases during the first quarter of 2025 but none during the same period this year, suggesting either improved enforcement or a shift by fraudsters towards other schemes.
Th data by the regulator, shows that beyond detecting fraud, authorities intensified prosecutions.
The report shows several suspects were arrested after investigations were completed and arraigned in courts across the country, including Nairobi, Mombasa, Kwale, Nyeri, Shanzu, Milimani and Mavoko.
“Forgery dominated the prosecutions, with multiple suspects charged under Sections 345 and 349 of the Penal Code. Other charges included uttering false documents, carrying out insurance agency business without registration, obtaining money by false pretences, conspiracy to defraud and stealing by agents,” data by IRA shows.
The increase in fraud cases comes as the regulator continues strengthening industry oversight through new compliance measures, anti-money laundering guidance and customer due diligence requirements introduced during the quarter.
The IRA also approved 28 new or repackaged insurance products during the period, reflecting continued innovation in the market despite growing fraud risks.
