Association of Insurance Brokers-Kenya
Nelson Omollo
Standard SMS

Insurance brokers protest exclusion from State tenders

Insurance brokers have accused the Government of bypassing them when sourcing for insurance services.

Under the aegis of the Association of Insurance Brokers-Kenya (AIBK), they claimed they had lost more than 50 per cent of the market share as a result of Government agencies, especially parastatals, preferring to deal with insurance companies directly.

ALSO READ:

Suppliers’ pay to delay by three months

The brokers accused procurement officers in State offices of being behind the ploy to deny them business.

“We are bewildered by this new development. Parastatals which particularly need insurance services as they seek cover for their various properties and their employees used to come to us for services. Now they have chosen to contact the underwriters directly,” said AIBK Vice Chairman Nelson Omollo in an interview.

The brokers, who are scheduled to have their annual general meeting today, will deliberate over how to compel the Government to include them in tender issues.

Avoid fake news! Subscribe to the Standard SMS service and receive factual, verified breaking news as it happens. Text the word ‘NEWS’ to 22840

Their argument is that the Government does not incur extra costs by engaging their services because they are paid directly by underwriters in form of commissions.

“When the State comes to us, we look for the best underwriter with the least amount of premium to insure whatever it wants to be insured. Through that service, the Government benefits without incurring any expense. So we wonder why they are bypassing us now. There must be some disagreeable plan between the underwriters and State procurement officers,” said Mr Omollo.

Share this Post

by

Search