Nairobi, July 16 -- The Kenya Bankers Association (KBA) has suffered a setback after the High Court rejected its request to have a circular by the Commissioner of Insurance banning service-based fees paid by insurance firms to subsidiaries of commercial banks suspended.

The High Court disallowed a suit filed by the sector lobby, saying the matter would best be handled by the Insurance Appeals Tribunal rather than a constitutional court.

"I find that the petitioner has approached this court prematurely. The dispute falls squarely within the jurisdiction of the Insurance Appeals Tribunal. The statutory pathway is both available and appropriate. Respect for institutional roles, statutory design and constitutional discipline requires that t...