WIBA Insurance Kenya: 7 Employer Duties, Penalties and How to Buy Cover (2026)

Updated 7 November 2026

WIBA insurance is the work injury cover every Kenyan employer must hold under the Work Injury Benefits Act, 2007. It pays compensation and medical costs when an employee is injured, falls ill from a scheduled occupational disease or dies because of their work. Section 7 of the Act makes the policy compulsory, and an employer without it commits an offence.

Checked on 7 November 2026 against the Work Injury Benefits Act (Cap. 236) on Kenya Law and the Ministry of Labour FAQs. This is general information, not legal advice.

Contents: Who must have it · Penalties · Employer duties · How to buy · Making a claim · FAQ

Who must have WIBA insurance

Section 7(1) says every employer shall obtain and maintain an insurance policy with an approved insurer for any liability it may incur under the Act to its employees. The Act applies to all employees, including people employed by the Government, other than the armed forces.

An “employee” under section 5 is a person employed for wages or a salary under a contract of service, and includes apprentices and indentured learners. It does not matter whether the contract is written or oral, or whether pay is calculated by the day, week or month. Some people are excluded, such as certain casual workers employed outside the employer’s business and family members living in the employer’s house. If you are unsure whether a worker is covered, assume they are and ask your insurer.

If you lend or hire out an employee to another business, section 4(2) says you are still treated as the employer while they work there. Keep your WIBA insurance in force for them.

A business that hires its first worker needs the policy from day one. Our guide to hiring your first employee in Kenya lists the other registrations.

Penalties for not having cover

Under section 7(4), an employer who fails to obtain and maintain WIBA insurance commits an offence and is liable on conviction to a fine of up to KSh 100,000, imprisonment of up to three months, or both. If the employer keeps operating without cover after conviction, section 7(5) adds a further fine of up to KSh 10,000 for each day the breach continues.

The bigger risk is usually the claim itself. Without a policy, the employer may have to pay compensation and medical costs from its own funds.

The Act allows one alternative: the Cabinet Secretary may exempt an employer that maintains an approved security, an undertaking by an approved surety to meet the employer’s liabilities up to an approved amount. In practice, most small and medium businesses buy a policy.

Seven employer duties under the Act

1. Buy and keep WIBA insurance with an approved insurer (section 7).
2. Register with the Director of Occupational Safety and Health Services and provide the prescribed particulars of the business (section 8).
3. Keep accurate payroll records, because compensation is based on the employee’s earnings.
4. Report accidents to the Director within seven days of receiving notice or learning of an injury, even if you dispute that it arose from work.
5. Treat fatal accidents urgently. Notice of a fatal accident must also reach the Director within 24 hours.
6. Arrange medical aid for the injured employee and keep receipts and medical reports.
7. Cooperate with the investigation and the Director’s assessment, and pay any compensation awarded through your insurer.

How to buy WIBA insurance

Most general insurers in Kenya sell WIBA insurance, often bundled with employer’s liability cover. Steps:

1. List every employee with job title and annual earnings. Insurers price WIBA policies on the payroll and the risk of the work, so an office clerk usually costs less to cover than a machine operator.
2. Request quotes from several insurers or a licensed broker. Check the insurer is licensed by the Insurance Regulatory Authority.
3. Compare more than the premium. Ask whether employer’s liability (claims under common law) is included, what limits apply, how medical expenses are capped and how fast claims are paid.
4. Declare earnings honestly. Under-declaring payroll to cut the premium can leave you underinsured when a claim comes.
5. Update the insurer when you hire. New staff, pay rises and new job roles change your declared payroll.
6. Renew on time and keep the policy schedule where you can show it during a labour inspection.

There is no single published premium rate for WIBA insurance in Kenya. Prices vary by insurer, payroll size and type of work, so get written quotes. If you are also buying fire, burglary or public liability cover, see our SME business insurance guide to bundle policies.

What happens when an employee is injured

The employee, or someone on their behalf, gives notice of the accident to the employer as soon as possible. The employer reports to the Director within seven days and notifies its insurer. The Director investigates, the employee is assessed by a medical practitioner, and compensation is worked out under the Act based on the type of disablement and the employee’s earnings.

Keep a simple accident file: date, time and place, witnesses, first aid given, hospital records and copies of every form sent. Good records shorten claims and reduce disputes.

Common mistakes

• Covering only permanent staff and forgetting apprentices or staff on fixed-term contracts.
• Letting the policy lapse during a slow month.
• Reporting accidents late because the injury seemed minor.
• Assuming SHA or private medical cover replaces WIBA insurance. It does not; WIBA is a separate legal duty.

Frequently asked questions

Is WIBA insurance compulsory in Kenya?

Yes. Section 7 of the Work Injury Benefits Act requires every employer to obtain and maintain a policy with an approved insurer, unless exempted for holding an approved security.

What is the penalty for not having WIBA cover?

A fine of up to KSh 100,000, up to three months in prison or both, plus up to KSh 10,000 for each day the breach continues after conviction.

How much does WIBA insurance cost?

There is no fixed public rate. Insurers price it on your payroll and the risk of the work, so request written quotes.

How soon must an employer report a work accident?

Within seven days of receiving notice or learning of the injury, and fatal accidents must reach the Director within 24 hours.