NAIROBI – A government policy requiring private employment agencies to secure an insurance bond for Kenyans destined for domestic work in Saudi Arabia has come under scrutiny, as investigations reveal a significant beneficiary is an insurance firm linked to President William Ruto’s immediate family. The company, Africa Merchant Assurance Company (AMACO), has direct and indirect ownership ties to the First Family, creating a potential conflict ofinterest where a state-mandated protective measure for vulnerable citizens financially benefits entities connected to the highest office in the land.

The policy is part of a broader regulatory framework managed by the Ministry of Labour and Social Protection and the National Employment Authority (NEA) aimed at protecting Kenyan migrant workers from exploitation. Under bilateral agreements and national regulations, recruitment agencies are required to pay a security bond, which can be as high as KSh 1.5 million, to cover the repatriation of distressed workers, medical emergencies, or unpaid wages. This measure was instituted in response to thousands of documented cases of abuse, mistreatment, and unexplained deaths of Kenyan workers in the Gulf.

Ownership and Influence

Official records from the Business Registration Service confirm the link between AMACO and the First Family. As of October 2024, President Ruto’s family held a 15.83% stake (190,000 shares) in AMACO through Yegen Farms Limited. The listed shareholders for Yegen Farms are First Lady Rachel Ruto and their daughter, Charlene Ruto. This shareholding represents a significant increase from the 50,000 shares the family held in July 2022.

Further ties are evident through the President's close associates. Silas Kibet Simwato, a long-time business partner of Dr. Ruto and the current chairman of the Digital Health Agency, is a major shareholder both directly and through family-owned companies. President Ruto himself previously held a direct stake in AMACO before transferring the shares. While the provision of such insurance is a legitimate business, AMACO's position as a key underwriter for these mandatory bonds raises governance concerns about whether the company gains an unfair advantage due to its political connections.

A Market Fueled by Desperation and Remittances

The demand for this insurance is driven by the massive and growing number of Kenyans seeking employment in the Gulf. As of August 2023, Labour Cabinet Secretary Florence Bore reported that approximately 200,000 documented Kenyan migrant workers were in Saudi Arabia, with over 151,000 employed as domestic workers. This labour export is a critical pillar of Kenya’s economy. Remittances from Saudi Arabia have surged, overtaking the UK as the second-largest source of diaspora inflows after the United States. In July 2024 alone, Kenyans in Saudi Arabia sent home USD $37.4 million.

However, this economic lifeline is shadowed by widespread reports of severe exploitation. Human rights organizations, including Amnesty International and Human Rights Watch, have extensively documented the plight of these workers. A May 2025 report by Amnesty International detailed horrific conditions, including 16-hour workdays, denial of food and rest, confiscation of passports, and physical and sexual assault, which often amount to forced labour and human trafficking. Between 2019 and 2021, the government reported 93 deaths of Kenyan workers in the Middle East, with many attributed to “cardiac arrest” under controversial circumstances.

Policy, Profit, and Protection Questions

The insurance bond is intended to be a safety net in this perilous environment. However, a recent investigation by The New York Times alleged that the compulsory insurance program, dominated by AMACO, has collected millions in premiums without paying out a single claim to families of deceased or distressed workers. This allegation, if proven, suggests a systemic failure where a policy designed for protection primarily functions as a revenue stream for the insurer. FURTHER INVESTIGATION REQUIRED.

The Kenyan government has consistently stated its commitment to protecting its citizens abroad. In November 2025, Principal Secretary for Labour Shadrack Mwadime emphasized that only accredited and compliant agencies would be permitted to operate, as part of a crackdown on rogue recruiters. The National Employment Authority has also deregistered non-compliant agencies. Despite these efforts, the fundamental conflict of interest remains unaddressed.

Neither the Office of the President nor AMACO had issued a public statement responding to these specific allegations by the time of publication on Wednesday, November 19, 2025. The situation places the administration in a difficult position, balancing the immense economic benefits of labour migration against the severe human cost and the ethical questions raised by the financial entanglement of the President's family in the very system meant to regulate it.