Nairobi, April 16 -- The Kenya Bankers Association (KBA) has urged the High Court to suspend a circular by the Commissioner of Insurance, which banned service-based fees paid by insurance firms to the subsidiaries of commercial banks.

In submissions filed in the High Court, KBA argued that the circular effectively invalidates contractual agreements between bancassurance intermediaries and insurers concerning value-added services.

The circular issued on March 25, 2026, stated that any payments made to intermediaries, such as override commissions, administration fees, profit shares, or any similar payments exceeding the limits set under the Insurance Act, are illegal.

However, KBA, through its chief executive officer, Raimond Malonje, co...