Treasury CS, Henry Rotich, is in more trouble after the Association of Insurance Brokers sued him over a new law he set.
The brokers and agents accused the CS of introducing a law that outlawed insurance brokerage.
According to the association, the law criminalises handling of premiums by insurance agents and brokers and spells doom for the industry moving forward.
In June, MPs passed Insurance (Amendment) Bill 2018 to completely bar underwriting agents and brokers from collecting premiums from policyholders.
This meant clients would have to pay premiums directly to insurance firms after negotiating with the insurance middlemen.
The intermediaries chairman, Nelson Omolo, noted that criminalising of premiums handling will make it impossible to do insurance business, rendering thousands of agents and brokers jobless.
“The mere touching of a client’s cheque will be a criminal offence. That is responding to a mosquito bite with a hammer,” he added.
“We want to see if these allegations actually hold water as this law comes into effect,” he continued.
The Star reported that he further claimed that the law was not favourable to them as it pushed them out of business.
The suit came moments after the CS presented himself to the DCI headquarters following an order for his prosecution by DPP Noordin Haji.
