KENYA Law and Practice Contributed by: Sammy Ndolo, Njeri Wagacha, Brian Muchiri and Sara Ndei, Cliffe Dekker Hofmeyr incorporating Kieti Law LLP
7. High-Frequency and Algorithmic Trading 7.1 Creation and Usage Regulations High-frequency and algorithmic trading are not regulated in Kenya. However, one of the robo- advisers exited from the CMA Sandbox (Four - Front Management) is providing algorithmic trading services as part of the robo-advisers ser - vices approved under the letter of no-objection issued by the CMA. 7.2 Requirement to Be Licensed or Otherwise Register as Market Makers When Functioning in a Principal Capacity As there is no regulatory regime for high-frequen - cy and algorithmic trading, there are no market players acting in a principal capacity who would need to register as market makers. 7.3 Regulatory Distinction Between Funds and Dealers As there is no regulatory regime on high-fre - quency or algorithmic trading, there is no dis - tinction between funds and dealers that engage in these activities. 7.4 Regulation of Programmers and Programming As there is no regulatory regime on high-frequen - cy or algorithmic trading, there are no regulations with respect to programmers who develop and create trading algorithms and other electronic trading tools.
Generally, the underwriting process for insur - ance industry participants is guided by guide - lines and circulates issued by the IRA. The IRA has published various guidelines that require industry participants to develop criteria for risk assessment and to monitor and amend their pro - cesses as necessary, such as the IRA guidelines on insurance products, risk management and market conduct. 8.2 Treatment of Different Types of Insurance The Insurance Act provides for the regulation of general insurance business and long-term insur - ance business, and these two types of insurance business are treated differently. Long-term insur - ance business is insurance business in any of the following classes: • life assurance; • annuities; • pensions (personal pension or deposit admin - istration); • group life; • group credit; • permanent health; • investment (unit link and linked investments or non-linked investments); and • any incidental business. General insurance, on the other hand, is any insurance business for any class or classes not being long-term insurance business. Insurers that offer both long-term and general insurance must maintain distinct capital reserves for each type of business. In addition, the assets held for long-term insurance policies are strictly protected. They are exclusively for the ben - efit of long-term policyholders and cannot be accessed to cover liabilities from the general insurance side of the business.
8. Insurtech 8.1 Underwriting Processes
The Insurance Act does not set any regulations that apply to insurtech; there are no specific underwriting requirements for these entities.
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