By JANE WAITHIRA
The Policyholders Compensation Fund (PCF) has intensified a nationwide public awareness campaign to educate Kenyans on how to seek compensation when insurance companies collapse.
The campaign, dubbed “PCF Mashinani,” aims to reach communities across the country and educate policyholders about the fund’s mandate to compensate them if their insurer becomes insolvent.
PCF Director of Corporate Services Mamo Abudo said many policyholders are left stranded when insurance companies collapse, often unaware that they can recover part of their losses through the fund.
He noted that despite the fund having existed for more than two decades, public awareness of its role remains low, prompting the nationwide outreach programme.
“We are educating policyholders that they can seek compensation through the fund if their insurer collapses and its licence is revoked,” Abudo said.
He explained that the Policyholders Compensation Fund operates under the National Treasury and serves as a safety net for individuals and institutions whose insurers become insolvent.
Abudo said the insurance industry continues to play a critical role in Kenya’s economy, making it essential for policyholders to understand the protections available should an insurance company fail.
According to PCF, Kenya’s insurance industry generated Sh396 billion in gross premiums in 2024, covering businesses, institutions and individuals with insured assets valued at more than Sh30 trillion.
However, several insurance companies have struggled financially over the years, with some placed under statutory management while others have been liquidated.
About 15 insurance companies have collapsed over the past two decades, with poor governance cited as one of the major contributing factors.
Currently, Invesco Assurance Company Limited, Resolution Insurance Company Limited, Standard Assurance Kenya Limited and Concord Insurance Company Limited are under liquidation.
“Insurance is becoming increasingly important, with almost everyone holding some form of insurance policy, whether motor vehicle, health or education insurance. However, many people are unaware that there is a fund established to cushion them if their insurer collapses,” Abudo said.
“We have already visited 15 counties to raise awareness and believe the campaign will greatly benefit members of the public,” he added.
Abudo said policyholders have a two-year window to lodge compensation claims after an insurer is placed under liquidation, with the maximum compensation payable capped at Sh500,000.
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