Kenya Reinsurance Corporation (Kenya Re) in partnership with the Insurance Regulatory Authority (IRA), the Kenya Revenue Authority (KRA), and Deloitte have facilitated upskilling of insurance companies finance teams and chief finance officers on tax compliance and current regulations. 

The workshop also enhanced local underwriters’ knowledge on digital tax technologies now being deployed to enhance revenue collection, streamline tax processes and enhance transparency. It aimed at improving financial operations for insurance companies to operate within the law, avoiding penalties and fostering trust in the sector.

Dr Hillary Maina Wachinga, Group Managing Director, Kenya Re said: “The training supports the development of a knowledgeable workforce, which is essential for innovating and expanding the industry. A compliant and well-regulated insurance industry will contribute to our economic stability by ensuring the smooth flow of financial services, reducing risks, and promoting investor confidence.”

The forum, that brought together chief financial officers, company accountants, chief auditors and risk assessors looked into reporting obligations, importance of maintaining regulatory transparency and its impact on the insurance industry. 

Mr Godfrey Kiptum, Commissioner of Insurance and CEO, IRA emphasized the critical need for insurers and reinsurers to maintain strong tax compliance frameworks, ensuring they meet their obligations in a transparent and timely manner. “Effective tax practices are crucial not only for every insurance company’s success but also for the collective growth of the sector,” he said, adding that the proactive approach to training ensures that businesses can optimize their operations and achieve sustained profitability in an evolving economic environment.

The topics discussed included addressing tax controversies, including dispute resolution with KRA to empower insurance and reinsurance firms to navigate regulatory challenges effectively, fostering a more predictable business environment. Withholding tax on brokerage fees, a pressing issue for local brokers, directly affects their operational viability and competitive edge, necessitating clear guidelines to avoid undue financial burdens. Moreover, a deeper understanding of PAYE, Corporation Tax, and VAT requirements ensures compliance while allowing companies to optimise their fiscal strategies.

By tackling these areas, the sector can enhance its financial resilience, promote fair competition, and align its operations with national economic growth objectives, contributing to the sector's overall stability and trustworthiness.

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