Policyholders of three Kenyan insurance companies will have to wait another two months before payments can resume after the Policyholders Compensation Fund (PCF) extended the firms’ payment freeze.
The extension affects KUSCCO Mutual Assurance Limited, Trident Insurance Company Limited and Corporate Insurance Company Limited.
In separate notices published on Tuesday, September 22, the PCF, which serves as statutory manager for the three insurers, extended the payment freeze for two months, effective September 10, 2026.
PCF Extends Payment Moratorium for KUSCCO, Trident and Corporate Insurance
Under the extension, the three insurers cannot make payments to policyholders or other creditors during the additional two-month period.
The PCF said the extension was made under Section 67C(10) of the Insurance Act, which gives the statutory manager powers to impose a moratorium on payments by an insurer under statutory management.
“Pursuant to the extension of the Statutory Management period and the retention of the appointment of the Policyholders Compensation Fund (hereinafter referred to as “PCF”) as the Statutory Manager for KUSCCO Mutual Assurance Limited (hereinafter referred to as “the Insurer”) by the Commissioner of Insurance in exercise of his powers under Section 67C (2)(i) of the Insurance Act, Cap 487 of the Laws of Kenya.
“PCF hereby extends the Moratorium in exercise of powers conferred upon it under section 67C (10) of the Insurance Act on payments by the said insurer to its policyholders and all other creditors for a further period of two (2) months, effective from 10th September 2026,” read one of the notices
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The Commissioner has also retained the Policyholders Compensation Fund as the statutory manager for the insurer during the extended period.
The notices also protect policyholders whose claims cannot be paid because of the freeze.
“A policyholder shall not be liable to pay any claim not payable by the insurer due to the moratorium,” the notices state, citing Section 67C(11) of the Insurance Act.
The three insurers were first placed under a six-month payment freeze in March 2026 after the Policyholders Compensation Fund (PCF) was appointed as their statutory manager.
Why the Three Insurers Were Placed Under Statutory Management
Corporate , KUSCCO Mutual and Trident Insurance Company Limited were placed under statutory management by the Insurance Regulatory Authority (IRA) on March 10, 2026, after failing to meet the required solvency thresholds.
Following the intervention, PCF took control of the insurers’ operations and declared a six-month moratorium on payments to policyholders, claimants, and other creditors under the Insurance Act.
“The Statutory Manager hereby declares a moratorium on the payment of the insurer to its policyholders and claimants and all other creditors for a period of six (6) months,” PCF said in separate notices covering the three companies.
The action followed a deterioration in the financial position of the insurers and came after earlier supervisory measures failed to restore their compliance with regulatory requirements.
According to the IRA, the companies had not demonstrated that they could meet the required capital and solvency thresholds within the timelines set by the regulator.
PCF, a state corporation under the National Treasury established under Section 179 of the Insurance Act, will oversee the insurers’ affairs during the moratorium period. This includes assessing liabilities, verifying claims and determining an appropriate resolution framework.
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