Legal challenge threatens Treasury action as Insurance Regulatory Authority CEO continues in office three months past constitutional limit
Nairobi, Kenya – May 22, 2025 – Treasury Cabinet Secretary John Mbadi is facing increasing pressure to halt payments to Godfrey Kiptum, the Commissioner of Insurance at the Insurance Regulatory Authority (IRA), whose second term officially expired on February 28, 2024, yet continues to draw a full salary and exercise authority.
A lawyer, Suleiman Bashir, has issued a seven-day ultimatum to the Treasury, demanding an immediate stop to Kiptum’s remuneration and the initiation of a recruitment process for a new commissioner, threatening legal action for misuse of public funds if no action is taken.
The controversy centers on Kiptum’s extended tenure at the insurance regulator, which has now stretched beyond nine years across multiple appointments.
His current predicament stems from what Bashir describes as a clear violation of Kenya’s Insurance Act, which explicitly limits commissioners to two three-year terms.
Kiptum first assumed the role in an acting capacity in 2016, serving for three years before his confirmation for a full three-year term.
In 2022, he secured what should have been his final reappointment for a second term that officially concluded on February 28, 2025.
“The continued occupation of this office beyond the statutory limit not only violates the Insurance Act but represents a flagrant misuse of taxpayer resources,” Bashir stated in his legal notice.
“Every day Mr. Kiptum remains in office and draws a salary is a day of illegal expenditure of public funds.”
Insiders suggest Kiptum’s prolonged stay may be facilitated by high-level political protection.
Sources familiar with the matter indicate he maintains close ties with Head of Public Service Felix Koskei, with whom he allegedly shares village roots.
This connection is believed to have shielded him from previous attempts to remove him from office.
The protective influence became apparent in 2024 when former IRA Board Chairman Mwanga Mabonga attempted to place Kiptum on compulsory leave pending investigations into alleged irregular dealings.
The move was swiftly reversed, Mabonga was subsequently removed from his position, and Kiptum remained firmly in place.
The standoff represents more than just an employment dispute—it highlights broader concerns about institutional integrity and adherence to constitutional term limits across Kenya’s regulatory landscape.
The Insurance Regulatory Authority, established to oversee Kenya’s growing insurance sector worth billions of shillings, has found itself at the center of a governance crisis that could undermine public confidence in financial regulation.
Bashir’s legal challenge has been strategically copied to multiple oversight bodies, including the Public Service Commission, the Ethics and Anti-Corruption Commission, and the IRA Board itself, effectively putting all relevant institutions on notice about the irregular situation.
The pressure on Treasury CS Mbadi intensifies as the seven-day ultimatum approaches its deadline.
The lawyer’s notice explicitly demands the immediate cessation of all salary payments, allowances, and executive benefits to Kiptum, along with the commencement of a proper recruitment process to fill the position legally.
“The Treasury cannot continue to facilitate what amounts to theft of public resources,” Bashir warned. “If they fail to act within the stipulated timeframe, we will have no choice but to seek judicial intervention to protect taxpayer interests.”
As the legal deadline approaches, all eyes are on Treasury CS Mbadi’s response.
Failure to act could result in court proceedings that may compel immediate action while potentially exposing the Treasury to claims for restitution of funds paid during Kiptum’s illegal tenure.
