INSURANCE AND BANKING SECTOR CONFERENCE

THE INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS OF KENYA
(ESTABLISHED UNDER THE ACCOUNTANTS ACT, LAWS OF KENYA)

INSURANCE AND BANKING SECTOR CONFERENCE
THEME: Enhancing financial reporting and internal controls for the financial services sector in Kenya: successes and pitfalls
DATE: 23RD – 25TH JULY 2025
VENUE: ENASHIPAI RESORT & SPA, NAIVASHA
TIME: 09.00AM-03.30PM

OVERVIEW

The adoption of IFRS 17 in Kenya is still underway, and its implementation is being overseen by the Institute. Kenya is expected to adopt IFRS 17 in its entirety, with no modifications or exemptions. To date, the implementation of IFRS 17 in Kenya has been challenging for insurance companies, as they are required to make significant changes to their systems, processes, and data management. Additionally, insurance companies are required to make substantial investments in technology and personnel to meet the new requirements. Kenyan insurance firms may face high costs to meet the conditions for reporting rules as the global standardization policy for underwriters came into effect on January 1, 2023. The implementation of the accounting standards was delayed by one year due to the Covid-19 pandemic. The requirements include that insurers double their capital and shift all non-quoted investments into a holding company.

To support the adoption of IFRS 17, ICPAK has been providing training and guidance to insurance companies and other stakeholders, including accountants and auditors. The ICPAK has also been working with other regulatory bodies, such as the Insurance Regulatory Authority of Kenya, to ensure a smooth transition to the new standard. Earlier in 2024, there was a risk that some insurers would not be IFRS 17 compliant or would have substandard opening values on their balance sheets. Much of this laxity was driven by scepticism about the cost-benefit balance of IFRS 17. Implementation of IFRS 17 requires significant financial resources for IT systems and human resources. Most internal actuarial teams in Kenya are small and, given how demanding implementation is, companies will have to hire more staff dedicated to IFRS 17.

The standard is also perceived as complex as it introduces new concepts that have no current equivalents, such as the contractual service margin. The general measurement model also includes subjective elements, such as the risk adjustment calculation and discounting options for short-term contracts. As a result, there is a fear that financial statements will become less useful and harder to interpret. The standard is therefore perceived as high-cost and low-benefit. It is expected that the adoption of IFRS 17 in Kenya will improve the quality of financial reporting for insurance companies, enhance comparability of financial information, and increase transparency in the insurance sector.

Capital Adequacy Ratio (CAR) in insurance is a crucial measure of an insurer’s financial strength and ability to withstand losses. It is calculated by dividing an insurer’s available capital by the total capital required, expressed as a percentage. The Insurance Act in Kenya mandates that insurers maintain a CAR of at least 100% of the minimum capital prescribed under the Act.

The Capital Adequacy Ratio (CAR) is a crucial financial metric in banking, representing the amount of a bank’s capital (equity) relative to its risk-weighted assets. It’s a key indicator of a bank’s financial health and stability, ensuring they can absorb potential losses and maintain operational stability. A higher CAR indicates a stronger bank, while a lower CAR raises concerns about their ability to meet obligations.

Financial inclusion is undoubtedly a leading facilitator of achieving the Sustainable Development Goals (SDGs). It provides individuals with tools to manage their money, access credit, access insurance products and services, invest for the future, and participate more actively in the formal economy. In addition, financial inclusion supports the attainment of the overarching goal of leapfrogging Kenya’s economy into a newly industrialized, middle-income country providing a high quality of life to all its citizens in a clean and secure environment anchored on Vision 2030.

Kenya is an outright leader globally in matters digital financial inclusion, with over 80% of adults today accessing financial services through mobile money platforms like M-pesa. The country has made significant progress in broadening and expanding access to financial services over the last two decades. This has transformed the lives of many citizens including women, youth, persons with disabilities and the elderly who previously were excluded in matters financial services. This has impacted positively on the country’s economic development, spurring sustainable growth and development in all sectors of the economy.

However, significant disparities remain influenced by gender, income, education, employment status and age. A significant number of women particularly in the rural areas of Kenya are still unable to access financial services despite the great milestones achieved so far. Moreover, the majority of those in the low-income bracket are still excluded from accessing formal financial services. A huge chunk of their meagre incomes is utilized in meeting basic needs like food, clothing and shelter leaving them without income for investment and other important financial services like insurance. Although Kenya boasts of a high literacy rate of 82.88% in 2022, only a paltry 23% of the population have secondary education and above. Besides this, Kenya is currently struggling with unemployment rate at 5.68% as at 2024. This means that most young people are unable to find gainful employment adversely affecting their ability to access financial services. Furthermore, many elderly people are today unbankable and therefore unable to access financial services. This is particularly more pronounced in rural areas where most of the youth, women, SMEs and marginalized people reside in.

OBJECTIVE & THEMATIC AREAS

Based on the foregoing developments, the Institute has organized a three-day insurance & banking sector conference themed ‘Enhancing financial inclusion in Kenya: successes and pitfalls. Over the three-days of the conference, experts, practitioners, scholars and policymakers will participate in animated discussions around the above-mentioned issues, setting out their collective views on how to enhance financial inclusion in Kenyan to spur economic growth and development. The conference will focus on the following topical areas:

1. Overview of financial inclusion in Kenya
• Progress over the last decade
• Key milestones and indicators
• Financial inclusion strategy and vision 2030 alignment
• The nexus between financial inclusion and SDGs: Kenyan experience
2. Policy and Regulatory framework
• Role of Central Bank of Kenya (CBK) and Insurance Regulatory Authority (IRA)
• The impact of relevant policies like the National Payments system Act
• Regulatory sandboxes and their role in innovation
3. Digital transformation in insurance and banking in Kenya
• The rise of mobile money and fintech (M-PESA, Equitel, etc.)
• Digital banking platforms
• Insurtech: digital insurance distribution models
4. Microinsurance and micro banking models
• Products tailored to low-income individuals
• Successes in informal sector outreach
• Designing for the underserved: youth, women, SMEs and rural populations
5. Capital Adequacy Ratios for Banks & Insurance
6. IFRS 17 Implementation and challenges
7. Advancements in Actuarial Valuation – Key Insights
8. IFRS 9- Financial Instruments
9. Benefits of Reinsurance for adequate risk management
10. Sustainability Reporting for Insurance Sector
11. Agent and mobile banking networks and partnerships
• Role of agents in expanding reach of financial services
• Oversight, training and challenges
• Weather -indexed insurance, mobile wallets for farmers
12. Credit risk, underwriting, default management and data-driven insights
• Credit risk modeling in informal sector of the Kenyan economy
• Managing default in micro-lending
• Fintech and Insurtech data analytics

Target Audience:

This course is designed for delegates drawn from both the public and private sectors, insurance and banking sectors. This conference is open to other  different professions.

 CONTINUOUS PROFESSIONAL DEVELOPMENT UNITS (CPD UNITS):

Members of ICPAK and reciprocating professional bodies will be awarded 20 Structured CPD Units upon successful completion of the conference.

Financial Investment:

Charges for the training  will cover workshop fees, materials, and e-certificates of attendance.

Online Booking:

We call on Conference participants to note that booking is available only online at www.icpak.com/events and will close two hours before the training session.  Delegates are reminded to note that online booking for training sessions is MANDATORY.   This is available either online at www.icpak.com/events  or on the ICPAK Live – A smart phone based application that is available from google store.

National Industrial Training Authority (NITA) Reimbursement:

The Institute is registered as a trainer with National Industrial Training Authority. The Institute’s registration number is DIT/TRN/47. Participants who are registered levy contributors should apply to NITA for reimbursement of their fees. Please note that this is applicable for Kenyan citizens only and subject to NITA regulations. Remember that to qualify you should apply to NITA for approval prior to the date of the conference. Further details can be obtained from their website (www.nita.go.ke)

Further requests can be channeled to us via telephone calls on +254 719 074 000,  or via email to marketing@icpak.com