Operators of boda bodas and tuk-tuks will be required to have insurance to reimburse passengers and pedestrians in the event of an accident.
The National Treasury recommended revisions to the Insurance Act on Thursday, making it unlawful for motorcyclists and tuk-tuk drivers to operate without insurance to protect their passengers and other road users.
The inclusion of fare-paying motorcycles under mandatory third-cover insurance, according to Treasury Secretary Ukur Yatani, was spurred by an increase in the number of accidents that have left many people dead or injured and unable to pay huge expenses.
There is currently no necessity for the burgeoning public transportation sector to carry passenger insurance.
Boda bodas have grown in popularity over the years as a result of their ability to avoid traffic jams in urban areas while also offering lower prices than other modes of public transportation.
According to the Kenya National Bureau of Statistics, yearly motorbike registrations have more than quadrupled in the last five years, reaching 252,601 last year, up from 123,539 in 2016.
Motorcycles are relatively inexpensive, costing between Sh65,000 and Sh130,000, allowing many young people to purchase them for commercial purposes.