Sh390.8 million paid to victims of failed insurance firms

More than 2,000 insurance claims linked to collapsed firms have been settled, with affected policyholders receiving Sh390.8 million in compensation as the government-backed safety fund moves to clear long-standing claims and expand support to customers of newly troubled insurers.

Figures released by the Policyholders Compensation Fund (PCF) show that 2,146 claims were paid during the financial year ending March 31, 2026, bringing relief to thousands of former customers whose insurers either collapsed or were unable to meet their obligations.

The largest share of the compensation went to former Xplico Insurance policyholders, who received Sh137.8 million. Customers of Invesco Assurance followed with payouts amounting to Sh101.4 million.

Former Resolution Insurance customers received Sh92.4 million, while BlueShield Insurance policyholders were paid Sh44.6 million.

The Fund also compensated customers of other failed insurers, including Sh9 million paid to Concord Insurance policyholders, Sh4.6 million to Standard Assurance customers and Sh1 million to claimants of United Insurance.

As it continues settling claims arising from past insurance failures, the Fund has now opened the compensation process for customers of Trident Insurance Company Limited, which was recently placed under statutory management.

“The public is hereby notified that the claims compensation process for Trident Insurance Company Limited (Under Statutory Management) has commenced. Policyholders, claimants and other affected parties are encouraged to lodge their claims with the Policyholders Compensation Fund,” the Fund said.

PCF said compensation arrangements for KUSCCO Mutual Assurance Company Limited and Corporate Insurance Company Limited will also be launched, with details to be announced through public notices.

The three companies were placed under statutory management on March 10, 2026, following a decision by the Commissioner of Insurance. The Policyholders Compensation Fund was appointed to take over their management.

The Fund said a large number of people who held policies with collapsed insurers are yet to seek compensation because they do not know they qualify for payment.

To address the gap, PCF has stepped up public education efforts through its PCFMtaani campaign, which is currently being carried out in Murang’a County.

The initiative seeks to create awareness on the compensation process and explain the role played by the Fund in protecting policyholders when insurance companies fail.

Since its launch in 2023, the campaign has reached 14 counties and engaged transport operators, teachers, insurance agents, cooperative societies, religious leaders and local administrators.

The Fund has called on former customers of collapsed insurance firms who have not lodged claims to submit their applications through its offices or official online channels.

Under the existing compensation framework, eligible claimants can receive up to Sh500,000 for each claim in accordance with Gazette Notice No. 971 dated January 23, 2026.