How is motor insurance calculated in Kenya?

Basic premium = vehicle value × rate (%). Then add: training levy (0.2% of basic premium), policy holder contribution (0.25% of basic premium), and stamp duty (0.05% of vehicle value). Total = basic premium + all three levies.

What is the training levy on motor insurance in Kenya?

The training levy is 0.2% of the basic premium and is mandatory on all motor insurance policies in Kenya.

What is the policy holder compensation fund contribution?

The policy holder compensation fund contribution is 0.25% of the basic premium. It protects policyholders in case an insurer is unable to pay a claim.

What is stamp duty on motor insurance in Kenya?

Stamp duty on a motor insurance policy is 0.05% of the insured vehicle value (not of the basic premium). It is a statutory charge.

What rate should I use for comprehensive motor insurance in Kenya?

Typical comprehensive rates: saloon cars 3.5–4.5%, SUVs 4–5%, luxury vehicles 4.5–6%, commercial vehicles 5–7.5%. Your actual rate depends on the insurer, vehicle age and usage.

What is third party motor insurance in Kenya?

Third party insurance is the minimum legal cover required in Kenya. It covers damage or injury to other parties but not your own vehicle. Third party only premiums are much lower than comprehensive.

Can I negotiate my motor insurance rate in Kenya?

Yes. Rates are not fixed by IRA for comprehensive insurance. You can shop around — get quotes from at least 3 licensed insurers. The IRA (Insurance Regulatory Authority) licenses all insurers in Kenya.

What affects my motor insurance premium in Kenya?

Key factors include vehicle value, vehicle age, engine capacity, usage (private/commercial), cover type (comprehensive/third party), claim history, and the insurer's own rate schedule.

What is a no-claim bonus in Kenya motor insurance?

A no-claim bonus (NCB) is a discount on your renewal premium for each claim-free year. In Kenya, NCB can range from 10% to 30% or more depending on the insurer and years claim-free.

Who regulates motor insurance in Kenya?

The Insurance Regulatory Authority (IRA) regulates all insurance business in Kenya. Only IRA-licensed insurers can legally sell motor insurance. Verify your insurer at ira.go.ke.

When does my motor insurance cover start in Kenya?

Cover typically starts from the date and time of issuance of the cover note or certificate. Confirm the inception date on your policy document.

Is motor insurance compulsory in Kenya?

Yes. Third party motor insurance is compulsory under the Traffic Act. Driving without at least third party insurance is a criminal offence. Comprehensive cover is optional but recommended.

Motor Insurance Calculator Kenya 2026

Calculate comprehensive motor insurance premium for private or commercial vehicles — including training levy, policy holder contribution and stamp duty. Or compare two insurers side by side.

Enter the current market value of your vehicle and the insurer's comprehensive rate. We calculate all mandatory levies and duties.

500,000 1,000,000 2,000,000 3,500,000 5,000,000

Vehicle Insured Value (KES)

KES

Current market value — not purchase price. Insuring above market value is over-insurance.

Insurance Rate (%)

Typical rates: 3.5–4.5% (saloon), 4–5% (SUV/4x4), 4.5–6% (luxury). Get at least 3 quotes.

Vehicle Type

Rate guidelines (comprehensive):
Saloon: 3.5–4.5% | SUV/4x4: 4–5% | Luxury: 4.5–6%
Older vehicles or high-mileage may attract higher rates.

Please enter a valid vehicle value and rate.

Calculate insurance premium for trucks, buses, matatus, taxis and other commercial vehicles. Commercial rates are typically higher due to increased risk.

1,000,000 2,000,000 5,000,000 10,000,000

Vehicle Insured Value (KES)

KES

Insurance Rate (%)

Commercial rates typically 5–7.5% depending on vehicle type and usage.

Vehicle Type

Commercial rate guidelines:
Truck/Lorry: 5–6.5% | PSV/Bus/Matatu: 6–7.5% | Taxi: 5.5–7%

Please enter a valid vehicle value and rate.

Enter your vehicle value and the rates from two different insurers to see the full premium for each and how much you save by choosing the cheaper option.

1,000,000 2,000,000 3,500,000 5,000,000

Vehicle Insured Value (KES)

KES

Insurer A Rate (%)

Insurer B Rate (%)

Please enter a valid vehicle value and both rates.

Insurance Results

Private Car — Annual Premium

Total Annual Premium

KES 0

all levies included

Basic Premium

KES 0

vehicle value × rate

Training Levy (0.2% of basic)

KES 0

Policy Holder Fund (0.25% of basic)

KES 0

Stamp Duty (0.05% of value)

KES 0

Monthly Equivalent

KES 0

total ÷ 12 (for budgeting)

Step-by-step calculation

Vehicle value KES 0

× Rate 0%

= Basic premium KES 0

+ Training levy (0.2% × basic) KES 0

+ Policy holder fund (0.25% × basic) KES 0

+ Stamp duty (0.05% × vehicle value) KES 0

= Total annual premium KES 0

💡 Insurance Tips

🔍 Get at least 3 quotes from IRA-licensed insurers. Rates for the same vehicle can vary by 1–2% between insurers — on a KES 2M car that's KES 20,000–40,000 per year.

📉 A no-claim bonus (NCB) of 10–30% is available on renewal if you had no claims in the prior year. Always ask your insurer to apply your NCB at renewal.

⚠️ Insure at current market value — not original purchase price. Over-insuring wastes money. Under-insuring means a partial payout in case of total loss.

📋 Read the excess clause. Most policies require you to bear the first KES 10,000–50,000 of any claim. Higher excess = lower premium.

🏛️ Only use IRA-licensed insurers. Verify at ira.go.ke. Buying from unlicensed agents is illegal and your claim may not be paid.

Rates are annual. Training levy and policy holder fund are % of basic premium. Stamp duty is % of vehicle value.

Commercial Vehicle — Annual Premium

Total Annual Premium

KES 0

all levies included

Basic Premium

KES 0

vehicle value × rate

Training Levy (0.2% of basic)

KES 0

Policy Holder Fund (0.25% of basic)

KES 0

Stamp Duty (0.05% of value)

KES 0

Monthly Equivalent

KES 0

total ÷ 12

Step-by-step calculation

Vehicle value KES 0

× Rate 0%

= Basic premium KES 0

+ Training levy (0.2% × basic) KES 0

+ Policy holder fund (0.25% × basic) KES 0

+ Stamp duty (0.05% × vehicle value) KES 0

= Total annual premium KES 0

Commercial rates are higher than private due to increased risk exposure, mileage and usage. PSV vehicles require additional PSV insurance.

Insurer Comparison

Insurer A Total Premium

KES 0

at 0%

Insurer B Total Premium

KES 0

at 0%

Annual Difference

KES 0

Monthly Saving

KES 0

if you choose the cheaper option

Side-by-side breakdown

Vehicle value KES 0

Insurer A — basic premium KES 0

Insurer A — all levies + stamp duty KES 0

Insurer A — total annual KES 0

Insurer B — basic premium KES 0

Insurer B — all levies + stamp duty KES 0

Insurer B — total annual KES 0

= Annual saving KES 0

💡 Comparing Insurers

⚡ A lower premium doesn't always mean better value. Check claim settlement ratio, excess clause and approved garages before deciding.

📋 All insurers must provide a policy schedule and certificate of insurance. Read the exclusions carefully — some policies exclude flood, storm or off-road damage.

🏛️ Verify both insurers at ira.go.ke before purchasing. Unregistered insurance is worthless and illegal.

Premiums calculated using the same formula for both insurers. Difference is due entirely to rate. Confirm exact figures with each insurer.

Kenya motor insurance levies (mandatory on all policies)
Training levy: 0.2% of basic premium | Policy holder fund: 0.25% of basic premium | Stamp duty: 0.05% of insured value
Regulator: IRA (Insurance Regulatory Authority) — ira.go.ke | Minimum cover required: Third Party only