Car insurance in Kenya
Premium calculator with levies and stamp duty
A premium of KES 90,000 for a car worth KES 1,500,000 comes to KES 90,445 once the 0.45% of statutory levies and the KES 40 stamp duty are added.
| Line | Amount |
|---|---|
| Basic comprehensive premiumKES 1,500,000 × 6% = KES 90,000 (CIC brochure 08/2021) | KES 90,000 |
| Training levy0.2% × KES 90,000 — Insurance Act s.197B; 0.2% is the 0.45% insurers print minus the 0.25% PCF levy | KES 180 |
| Policyholders Compensation Fund levy0.25% × KES 90,000 — PCF Regulations, reg. 9(3) | KES 225 |
| Stamp dutyKES 40 per policy — Stamp Duty Act, Schedule item 27 | KES 40 |
| Total to pay | KES 90,445 |
What next: third-party vs comprehensive explains what each cover pays for; get written quotes from licensed insurers to replace the example rate with your own.
Indicative only: the insurer's written quote decides. CIC's rates are one insurer's own published schedule (version 08/2021), not a market price; other insurers rate your car on its value, use, age and your claims record. Motor premiums do not qualify for insurance relief.
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How a car insurance premium is built in Kenya
| Line | How it is worked out | Source |
|---|---|---|
| Basic premium (comprehensive) | The insurer's rate × the sum insured (the car's value), never below its minimum premium | Each insurer's own rating — CIC publishes 6%, 4% or 3% by value band, minimum KES 37,500 (brochure) |
| Basic premium (third-party only) | A flat price per vehicle | CIC: KES 7,500 for one private car, KES 6,500 per vehicle for a fleet of three or more |
| Extras | Each add-on priced as a % of the value with a minimum, or a flat amount | CIC: political violence 0.25% (min KES 2,500), excess protector own damage 0.25% (min KES 5,000), theft and own damage 1% (min KES 10,000) |
| Training levy | Charged on the policyholder and collected by the insurer, at a rate set by Gazette order; 0.2% = the 0.45% insurers print minus the 0.25% PCF levy | Insurance Act s.197B |
| Policyholders Compensation Fund levy | 0.25% of the premium payable | PCF Regulations, reg. 9(3) |
| Stamp duty | KES 40 per policy | Stamp Duty Act, Schedule item 27 |
The two levies together are the 0.45% that insurers print next to their prices — Jubilee's J-Care brochure, for example, says its premiums are "exclusive of 0.45% (Training Levy & Policyholders funds) and Stamp Duty (Kshs 40.00)" (brochure). The PCF regulations fix the policyholder's share at 0.25%; the insurer pays another 0.25% of its own, which is not added to your bill.
Worked example: comprehensive cover at CIC's published rates
CIC's Motor Private brochure (version 08/2021) is one insurer's own price schedule, used here because it is published in full. For three car values:
| Car value | Premium (CIC rate) | + levies and stamp duty | Total |
|---|---|---|---|
| KES 800,000 | 6% = KES 48,000 | 216 + 40 | KES 48,256 |
| KES 2,000,000 | 4% = KES 80,000 | 360 + 40 | KES 80,400 |
| KES 3,000,000 | 3% = KES 90,000 | 405 + 40 | KES 90,445 |
A car valued at KES 600,000 would come to 6% = KES 36,000, below CIC's minimum premium, so KES 37,500 applies. CIC's brochure adds that a car worth less than KES 500,000 is insured under third-party only.
Adding CIC's political violence extra to the KES 2,000,000 car costs 0.25% = KES 5,000, which raises the premium to KES 85,000 and the levies to KES 382.50.
Using the calculator with your own quote
- Choose The rate on my quote and type the rate the insurer or broker gave you, its minimum premium and the total of the extras.
- Check the levy lines of the quote against the calculator: 0.2% and 0.25% of the same premium, and KES 40 of stamp duty.
- Compare quotes on the total, for the same value and the same extras — a lower rate with a higher minimum premium can cost more on a cheap car.
What drives the rate (your car's use, age, value, your claims record and the no claims discount) is explained in cheapest car insurance in Kenya and motor insurance in Kenya.
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Frequently asked questions
How is comprehensive car insurance calculated in Kenya?
The insurer applies its rate to the car's value (sum insured), with a minimum premium, then adds any extras. The 0.45% of levies insurers print (0.25% Policyholders Compensation Fund levy plus the training levy) and KES 40 stamp duty are added on top. CIC, for example, publishes 6%, 4% or 3% by value band with a minimum of KES 37,500.
How much is comprehensive insurance for a car worth KES 1 million in Kenya?
At CIC's published rate of 6% (brochure 08/2021), the basic premium is KES 60,000; with the 0.45% of levies (KES 270) and KES 40 stamp duty, KES 60,310. Other insurers set their own rates — compare written quotes.
What is the training levy on insurance in Kenya?
A levy charged on policyholders under section 197B of the Insurance Act and collected by the insurer, on general insurance business, at a rate the Cabinet Secretary sets by Gazette order. Insurers print it together with the policyholders' fund levy as 0.45% of the premium; since the PCF levy is 0.25%, the training levy is the remaining 0.2%. Check the levy lines on your quote.
What is the PHCF levy on my insurance?
The Policyholders Compensation Fund levy: 0.25% of the premium, paid by the policyholder (and another 0.25% by the insurer) under regulation 9(3) of the PCF Regulations. The Fund compensates claimants of an insurer placed under statutory management.
How much is stamp duty on an insurance policy in Kenya?
KES 40 per policy under item 27 of the Schedule to the Stamp Duty Act, payable by the insurer and passed on in the quote.
Can I claim insurance relief on car insurance?
No. Insurance relief covers life, education and health policies only — see the insurance relief calculator.
Sources
- CIC General Insurance — Motor Private brochure, version 08/2021: comprehensive rates by value band, minimum premium, third-party-only premium, extras (insurer's own document, opened 28 October 2026)
- Insurance Act, Cap. 487 (as at 11 December 2023) — Part XXB, s.197B: insurance training levy charged on policyholders, rate set by Gazette order as a percentage of gross direct general premiums — Kenya Law (Web Archive copy)
- Insurance (Policyholders' Compensation Fund) Regulations, L.N. 86 of 2010 (as at 25 August 2023) — regulation 9(3): insurer and policyholder each contribute 0.25% of the premium — Kenya Law
- Policyholders Compensation Fund — Stakeholders: policyholders pay a levy of 0.25% of their premiums
- Stamp Duty Act, Cap. 480 (as at 1 July 2026) — Schedule, item 27 "Policy of Insurance" (3)(b) and (4): KES 40, payable by the insurer — Kenya Law
- Jubilee Health Insurance — J-Care brochure, effective 1 December 2023: "Premium exclusive of 0.45% (Training Levy & Policyholders funds) and Stamp Duty (Kshs 40.00)" (insurer's own document, opened 28 October 2026)