The Policyholders Compensation Fund has imposed a six-month freeze on payouts to customers and creditors of three struggling insurers after taking over their management. The affected companies, Corporate Insurance Company Limited, KUSCCO Mutual Assurance Limited, and Trident Insurance Company Limited, were placed under statutory management on March 10, 2026 by the Insurance Regulatory Authority after failing to meet required solvency thresholds.
With PCF now in full control, all payments to policyholders, claimants, and creditors have been suspended for six months, in line with the Insurance Act. During this period, the firms are barred from settling claims or issuing new policies.
A moratorium effectively shields both the insurers and their clients from legal action or debt enforcement while the situation is stabilised.
The Policyholders Compensation Fund, a state corporation under the National Treasury, is mandated to compensate claimants when insurers collapse or are placed under statutory management.
The regulator said the decision followed prolonged engagement with the firms, whose financial health continued to deteriorate despite attempts to restore compliance. As a precaution, the authority has also barred the companies from writing new business and advised existing policyholders to seek cover from alternative licensed insurers.
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The move is aimed at protecting policyholders and the broader public while preventing further financial risk from building up within the troubled firms.
In terms of operations, KUSCCO Mutual Assurance Limited specialises in life insurance and pension products, largely serving SACCO members. Meanwhile, Corporate Insurance Company Limited and Trident Insurance Company Limited focus on general insurance, offering covers such as motor, property, and other short-term risk products.
