Kenyan drivers have reported fines and arrests after an insurance company was placed under regulatory takeover, affecting the verification of valid policies at traffic checkpoints and on digital platforms.
Many motorists who had secured the insurance found themselves unable to validate their policies using the Bima Yangu app or at routine traffic checks, resulting in unexpected penalties.
One affected driver, Isaac Wcr, shared a screenshot of his insurance certificate, showing Policy No. 020/070/1/427154/2021 (COMP) valid from June 27, 2025, to June 26, 2026.
Despite having a legitimate certificate with registration and chassis details, Isaac reported being arrested and fined for “no insurance.”
In his social media post, he criticized the lack of clear communication from the insurer and demanded proper compensation.
“So Trident Insurance goes under receivership and not a single clear notice to clients? I only find out AFTER being arrested and fined for “no insurance.” This is gross negligence. Customers deserve proper communication, not punishment for your failure. Fix this mess,” Isaac noted.
Ubuntu Bantu, responding to Isaac on social media, noted that the Insurance Regulatory Authority (IRA) should have flagged affected vehicles as pending rather than “illegal” in police systems.
Instead, the disorganized data enabled enforcement officers to impose fines by exploiting the policy verification gap.
COFEK Responds to Trident Customer Concerns
Consumer advocacy group Consumers Federation Of Kenya (COFEK) stated that when regulators collapse an insurer without warning, ordinary Kenyans pay the price.
On March 10, 2026, the IRA placed Trident Insurance Company Limited under statutory management, effectively halting the company’s operations.
At the time, the insurer had been issuing valid certificates to paying customers as recently as June 2025.
Also Read: Policyholders and Creditors of Three Insurance Firms Face Six-Month Payout Freeze
According to COFEK’s statement, Trident, founded in 1982, focused on general insurance covering individuals, motor vehicles, and property.
“On March 10, 2026, the Insurance Regulatory Authority (IRA) placed Trident Insurance Company Limited under statutory management — effectively pulling the plug on a firm that had been issuing certificates of insurance to paying customers as recently as June 2025. What followed for thousands of unsuspecting policyholders was not a carefully managed transition. It was silence, followed by handcuffs,” COFEK said.
The company had faced repeated complaints over unpaid claims, financial mismanagement, and bounced cheques. Despite warning signs, the regulator’s intervention did not provide direct communication to policyholders.
Many discovered only when stopped at roadblocks that their insurance was invalid, leaving them vulnerable to fines and arrests. COFEK emphasized that this was a systemic failure rather than an individual customer fault.
Earlier on in the statement issued by the IRA, policyholders were asked to seek alternative coverage from other licensed insurers to prevent gaps in protection. However, for many drivers, the sudden collapse of Trident’s operations created confusion and financial exposure.
Also Read: IRA Bars Three Insurance Companies from Issuing Further Contracts, Holders to Seek Alternatives
Regulatory Takeover and Policyholders Compensation Fund Actions
On March 10, 2026, the IRA placed Trident Insurance, along with Corporate Insurance Company Limited and KUSCCO Mutual Assurance Limited, under statutory management due to regulatory breaches and financial instability.
This intervention caused policies to fail verification on the Bima Yangu app and at traffic checkpoints.
The Policyholders Compensation Fund (PCF) imposed a six-month moratorium on payouts to policyholders of the three affected insurers.
PCF assumed full control of the insurers’ operations, suspending payments to policyholders, claimants, and other creditors in line with the provisions of the Insurance Act.
