Kenya’s insurance sector in crisis as regulator takes over three firms.

The Insurance Regulatory Authority (IRA) has placed three insurance companies under statutory management in a sweeping crackdown that signals deepening distress in Kenya’s insurance sector.

Trident Insurance Company Limited (TIC), KUSCCO Mutual Assurance Limited and Corporate Insurance Company Limited (CIC) were all placed under statutory management on March 10, 2026, in a move that affects thousands of policyholders across the country.

The regulator invoked Section 67C(2)(i) of the Insurance Act to effect the takeovers, appointing the Policyholders Compensation Fund (PCF) as the Statutory Manager for all three firms.

None of the three insurers is permitted to enter into any new insurance contracts with effect from today, March 11, 2026, the IRA said in separate public notices signed by the Commissioner of Insurance Godfrey Kiptum.

Existing policyholders have been advised to immediately seek alternative cover from other licensed insurers to avoid exposure to uninsured risk. The directive is especially urgent for holders of motor, medical and other short-term covers whose policies may be due for renewal.

“The insurer’s existing policyholders are advised to immediately seek alternative covers from other licensed insurers to ensure that there is no unnecessary exposure,” the IRA said in identical notices for Trident and Corporate Insurance.

For the Kenya Union of Savings and Credit Co-operatives (KUSCCO) Mutual Assurance and Corporate Insurance,which offer long-term products, the Policyholders Compensation Fund has also undertaken to advise policyholders on the management of their long-term insurance policies, an indication that life and savings products are also caught up in the crisis.

The IRA sought to reassure affected claimants that PCF will meet their claims as provided for under the Insurance Act, Chapter (Cap) 487 of the Laws of Kenya. However, policyholders should note that the fund pays compensation up to a statutory cap, meaning those with large claims may not be fully covered.

The IRA has not yet disclosed the specific reasons that necessitated the takeovers, but statutory management is typically invoked when a company is unable to meet its financial obligations or is being run in a manner prejudicial to policyholders.

By Benedict Aoya

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