Kenya’s Policyholders Compensation Fund(PCF)has extended the moratorium on payments by Corporate Insurance, Trident Insurance and KUSCCO Mutual Assurance for a further two months.
This is from 10th September 2026, alongside extensions of their statutory-management periods.
The three insurers therefore remain unable to make policyholder and creditor payments covered by the moratorium, prolonging the resolution process and delaying recoveries for affected claimants.
The move by Policyholders Compensation Fund on KUSCCO Mutual Fund further complicates matters for several Deposit-Taking Savings and Credit Cooperative Societies that had taken out insurance covers with KUSCCO, now fighting a liquidation battle in court.
On March 11th 2026, the Insurance Regulatory Authority placed KUSCCO Mutual Assurance Limited under Statutory Management as per Section 67C(2)(i) of the Insurance Act.
The Authority has appointed the Policyholders Compensation Fund (PCF) as the Statutory Manager for KUSCCO Mutual Assurance Limited.
KUSCCO Mutual Assurance Limited is thus not authorized to enter into any new insurance contracts from 11th March 2026.
The insurer’s existing Policyholders were advised to immediately seek alternative covers from other licensed insurers to ensure that there is no unnecessary exposure.
The Policyholders Compensation Fund said it will compensate the affected claimants as provided for under the Insurance Act, Cap 487 Laws of Kenya.
The Policyholders Compensation Fund said then that it will advise long term insurance policyholders on management of long term insurance policies.
The Policyholders Compensation Fund (PCF) is a State Corporation under the National Treasury that was established through the Legal Notice No.105 of 2004 and commenced its operations in January 2005
The Fund was established for the primary purpose of providing compensation to claimants of an insurer that has been put under Statutory Management and for the secondary purpose of increasing the general public’s confidence in the insurance sector
The decision to establish the Fund was informed by the collapse of several Insurance companies prior to the year 2005. The Fund is governed by section 179 of the Insurance Act (Cap 487) and the Insurance (Policyholders Compensation Fund) (Amendment) Regulations, 2014.
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