Updated 12 November 2026
The Policyholders Compensation Fund (PCF) is the State body that pays compensation to policyholders and claimants when a Kenyan insurer is placed under statutory management or has its licence cancelled. If your insurer has collapsed or stopped paying claims, the Policyholders Compensation Fund is the office to deal with, not the insurer’s old branch. It is a State corporation under The National Treasury, set up under section 179 of the Insurance Act (Cap. 487), according to its own notices and pcf.go.ke, checked on 12 November 2026.
Updated November 2026. This guide uses only the Fund’s own website pages (Compensation, Liquidation, FAQs, About Us and Public Notices). The Fund does not publish a single compensation amount on those pages; its Board of Trustees sets the amounts for each class of policy, so this guide does not quote one.
On this page
In this guide
What the Policyholders Compensation Fund does
The Policyholders Compensation Fund says it was established on 24 September 2004 through Legal Notice 105 of 2004 and started operating on 1 January 2005. Its stated mandate under the Insurance Act is to:
- compensate policyholders of an insurer placed under statutory management, or whose licence has been cancelled;
- monitor, with the Commissioner of Insurance where necessary, the risk profile of insurers;
- advise the Cabinet Secretary for finance on compensation policy;
- take part in the statutory management of an insurer when the regulator places it under a manager; and
- liquidate an insurer when a court orders it.
In plain terms, the Insurance Regulatory Authority (IRA) licenses and supervises insurers, while the Policyholders Compensation Fund steps in when one fails. The Fund’s FAQ describes the two bodies as stakeholders created under the same Act with different jobs: IRA regulates, PCF compensates. It works much like KDIC deposit insurance for bank accounts, but for insurance policies.
Who can claim from the Policyholders Compensation Fund: 5 rules
The Policyholders Compensation Fund’s Compensation page sets out the conditions and limits. These five rules decide most cases.
| Rule | What the Fund’s page says | What it means for you |
|---|---|---|
| 1. Kenyan policy | Covers claims from all insurance policies issued in Kenya | Motor, medical, life and general policies sold in Kenya are in scope |
| 2. Exclusions | Re-insurance policies, superannuation schemes and policies issued before the Fund began operating are excluded | Pension schemes and policies older than 2005 are not covered |
| 3. Insolvency | Compensation is paid when an authorised insurer has become insolvent | A slow payer is not automatically insolvent |
| 4. Two-year limit | No compensation where a claim is made more than two years from the date of insolvency | Lodge early; late claims are rejected |
| 5. No double payment | No compensation where another solvent insurer is also liable for the same loss | If another policy covers the loss, claim there first |
The Fund counts an insurer as insolvent if a court winds it up under the Companies Act, if it fails the solvency requirements in section 41 of the Insurance Act, if creditors pass a voluntary winding-up resolution (for general insurers), or if a court winds it up on the Commissioner of Insurance’s petition under section 123.
Two further limits matter. First, the Fund pays nothing for insurers whose winding-up petition or resolution came before 1 January 2005. Its FAQ names Stallion Insurance, Access Insurance, Kenya National Assurance and Lakestar Insurance as collapses from before that date whose policyholders do not qualify. Second, where the Commissioner appointed a manager under section 67C(2) of the Insurance Act before the insurer became insolvent, a claim only qualifies if the incident happened before the manager was appointed.
You must also act in “utmost good faith”: disclose all material facts to the Board and give any information it asks for, on oath if required. The Board may reject a claim from someone who does not.
Insurers under statutory management and liquidation
On 12 November 2026 the Policyholders Compensation Fund website listed these insurers:
| Insurer | Status on pcf.go.ke | Latest notice seen |
|---|---|---|
| Trident Insurance Company Limited | Under statutory management, PCF as statutory manager | Moratorium on payments extended for two months from 10 September 2026 (dated 9 September 2026) |
| Corporate Insurance Company Limited | Under statutory management, PCF retained as statutory manager | Extended for two months from 10 September 2026 (dated 9 September 2026) |
| KUSCCO Mutual Assurance Company Limited | Under statutory management, PCF retained as statutory manager | Extended for two months from 10 September 2026 (dated 9 September 2026) |
| Standard Assurance Kenya Ltd | Under liquidation | Listed on the Liquidation page |
| Concord Insurance Co. Ltd | Under liquidation | Listed on the Liquidation page |
| Invesco Assurance Company Ltd | Compensation period lapsed | Public notice on the lapse of the compensation period |
The two-month extensions dated 9 September 2026 ran from 10 September. A newer notice had not appeared on the Public Notices page when we checked on 12 November 2026, so check the page again for the current position before you act.
The moratorium matters for motorists and businesses. Under the Trident notice, the Policyholders Compensation Fund froze payments by the insurer to policyholders and other creditors for two months. The same notice says that, under section 67C(11) of the Insurance Act, a policyholder is not liable to pay any claim that the insurer cannot pay because of the moratorium. If a third party sues you over an accident covered by one of these insurers, show them the notice and tell your lawyer. For the insurer’s own desks, see our Trident Insurance contacts guide.
How to make a claim to the Policyholders Compensation Fund
- Confirm the insurer’s status. Check the Statutory Management, Liquidation and Public Notices pages on pcf.go.ke. Compensation runs through the Fund only for insurers on those lists.
- Gather your papers. Keep the policy document or certificate, premium receipts, the claim form you lodged with the insurer, any discharge voucher, police abstract or medical reports, and your ID. The Fund’s rules let the Board ask for whatever supporting documents it needs.
- Fill the prescribed form. The Compensation page says a claim is made on the prescribed form, addressed to the Managing Trustee, with supporting documents. The website links a claims portal and a complaints portal under Online Services.
- Disclose everything. Say whether any other insurer, employer or third party has paid part of the loss. The Board may treat such payments as part of your compensation.
- Watch the deadline. Claims made more than two years after the insurer’s insolvency are not paid, so do not wait for the liquidation to end.
Contacts on the Fund’s website: KWFT Centre, 6th Floor, Masaba Road, Upper Hill, Nairobi (P.O. Box 24203-00100); phone +254 794 582 700, +254 785 582 700 or +254 111 121 700; email info@pcf.go.ke. Notices for insurers it manages also give statutorymanager@pcf.go.ke. Office hours are listed as Monday to Friday, 8am to 5pm.
If your claim is against a working insurer, the normal route applies; see how to file an insurance claim with CIC, Madison or Britam. Before buying a new motor cover after a collapse, check that the motor insurance is valid, and buy through someone with an IRA insurance agent licence.
What the PCF levy on your premium pays for
Policyholders, not insurers, fund the Policyholders Compensation Fund through a levy collected with premiums. The Fund’s FAQ explains why: the policyholders are the beneficiaries, and by paying the levy they meet their statutory obligation that ensures compensation if their insurer is declared insolvent. The Fund says 10% of contributions go to administration and the other 90% is invested in Government securities such as Treasury bills.
The Fund also explains that an insurer is not declared insolvent overnight. IRA first appoints a statutory manager to try to revive it. The manager can ask for extensions. If revival fails, the manager reports to IRA, which petitions the court for a winding-up order, and the length of that court process cannot be predicted. That is why the Trident, Corporate and KUSCCO Mutual notices are extensions rather than final orders.
Frequently asked questions
What is the Policyholders Compensation Fund in Kenya?
It is a State corporation under The National Treasury, set up under section 179 of the Insurance Act, that compensates policyholders and claimants of an insurer placed under statutory management or whose licence has been cancelled. It began operating on 1 January 2005.
How long do I have to claim from the Policyholders Compensation Fund?
The Fund’s Compensation page says it will not pay a claim made after two years from the date the insurer became insolvent. Claim as soon as the insurer appears on the Fund’s lists.
Which insurers are under statutory management in 2026?
On 12 November 2026 pcf.go.ke listed Trident Insurance, Corporate Insurance and KUSCCO Mutual Assurance under statutory management, with Standard Assurance Kenya and Concord Insurance under liquidation. Check the Public Notices page for newer extensions.
Does the Policyholders Compensation Fund cover pension schemes?
No. The Fund’s page excludes superannuation schemes and re-insurance policies. Policies issued before the Fund started operating are also excluded.
How much compensation does the Policyholders Compensation Fund pay?
The Fund’s Compensation page says its Board of Trustees, in consultation with the Cabinet Secretary, sets the amount payable for different classes of policy from time to time. No figure was published on the pages checked on 12 November 2026, so ask the Fund for the current limit for your class of cover.
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