The Insurance Regulatory Authority (IRA) has placed three insurance companies under statutory management following concerns over their financial stability and ability to meet regulatory requirements.
The affected insurers are:
- Trident Insurance Company Limited
- Corporate Insurance Company Limited
- KUSCCO Mutual Assurance Limited
The regulatory action took effect on March 10, 2026, under Section 67C(2)(i) of the Insurance Act.
Policyholders Compensation Fund Appointed Manager
The regulator has appointed the Policyholders Compensation Fund (PCF) as the statutory manager for the three insurers.
Under statutory management, PCF will take control of the management and operations of the companies, including assessing their financial position and overseeing the resolution of outstanding obligations.
According to the authority, the intervention is intended to protect policyholders, creditors and the general public.
Insurers Barred From Issuing New Policies
Following the directive, the three companies are not allowed to enter into any new insurance contracts from March 11, 2026.
Policyholders who currently hold insurance policies with the affected firms have been advised to seek alternative insurance cover from other licensed insurers to avoid exposure to risks.
Failure to Meet Solvency Requirements
The Insurance Regulatory Authority said the decision was made after prolonged supervisory engagement with the companies.
During this process, the regulator observed continued deterioration in the insurers’ financial positions and their failure to meet mandatory solvency requirements set under Kenyan insurance regulations.
Despite several regulatory directives and interventions intended to help the firms restore compliance, the companies did not demonstrate sufficient capacity to improve their financial standing within the required timelines.
Claims to Be Handled Under Insurance Law
The Policyholders Compensation Fund will oversee the verification of claims and management of liabilities.
Affected claimants will be compensated in accordance with the provisions of the Insurance Act, Cap 487 of the Laws of Kenya.
For long-term insurance policies, the fund will also provide guidance to policyholders on the management and possible transfer of their policies.
Regulator Seeks to Maintain Confidence in Insurance Sector
The Insurance Regulatory Authority said the move forms part of its mandate to regulate, supervise and develop the insurance industry in Kenya while protecting policyholders.
The authority added that the intervention aims to prevent further accumulation of liabilities and ensure orderly resolution of the affected companies’ obligations.
Members of the public and stakeholders have been encouraged to contact the regulator through its official communication channels for further information.
