IRA Cancels 3 Major Insurance Companies in Kenya: What Policyholders Need to Know

Which Insurance Companies Have Been Suspended?

If you hold a policy with KUSCCO Mutual Assurance Limited, Trident Insurance Company Limited, or Corporate Insurance Company Limited, you need to read this carefully. Effective 10 March 2026, the Insurance Regulatory Authority of Kenya (IRA) placed all three companies under statutory management — meaning their operations have been suspended and existing policies are cancelled.

This is a significant development that affects thousands of policyholders across Kenya, spanning motor, medical, life, and property insurance covers.

The Policyholders Compensation Fund (PCF) has been appointed as statutory manager for all three companies. The PCF is responsible for winding up operations and compensating eligible claimants.

What Does 'Statutory Management' Mean for You?

When an insurer is placed under statutory management, it is immediately barred from issuing new policies or conducting any new business. Critically, existing policies from the affected companies are effectively cancelled.

This means that if you currently hold cover with any of the three companies — whether motor, medical, life, or property insurance — you are no longer protected. The IRA has strongly advised all affected policyholders to seek replacement cover from a licensed insurer without delay.

"Existing policyholders have been advised to immediately seek alternative cover from other licensed insurers to avoid exposure to uninsured risk."

Will You Be Compensated? How the PCF Works

Yes — eligible policyholders can receive compensation through the Policyholders Compensation Fund (PCF). Here is the key figure to know:

KSh 500,000 - Maximum PCF Compensation Per Claim (as of 1 Jan 2026)

This cap was doubled from KSh 250,000 at the start of 2026, and applies across motor, medical, life, and property covers.

However, the KSh 500,000 cap may not be enough for those with high-value policies — such as comprehensive medical covers or large life insurance policies. Policyholders with such covers may still face significant losses beyond what the PCF can reimburse.

To file a compensation claim, contact the PCF through the IRA's official channels at www.ira.go.ke.

What You Should Do Right Now

• Stop assuming you are covered.

Your current policy with any of the three insurers is no longer valid as of 10 March 2026.

• Get a new policy immediately.

Contact a licensed insurer to arrange replacement cover. You can verify licensed insurers on the IRA website at www.ira.go.ke.

• Gather your policy documents.

You will need your original policy documents, premium payment records, and ID to file a PCF claim.

• File your compensation claim with the PCF.

Visit www.ira.go.ke or call the IRA helpline for step-by-step guidance on how to claim.

Why Does This Keep Happening in Kenya?

This is not the first time Kenyan policyholders have faced this situation. Over the years, insurers such as Resolution Insurance, Standard Assurance, and Invesco Assurance have all collapsed — leaving thousands of customers without cover and, in many cases, waiting years for compensation.

The IRA has been tightening regulations to address the problem of under-capitalised and poorly managed insurers. However, industry experts warn that more stringent enforcement of financial soundness requirements is needed before companies reach the point of collapse.

The Bottom Line

The suspension of three insurance companies in a single week is a stark reminder of the risks Kenyan consumers face when choosing an insurer. While the PCF provides a safety net, its limits may fall short for many policyholders.

Before purchasing any insurance policy, always verify that the insurer is licensed by the IRA, check their financial health, and understand exactly what the PCF can cover in a worst-case scenario. Your financial security depends on making informed choices.