IRA Takes Over Management of Three Insurance Firms

The Insurance Regulatory Authority (IRA) has placed three insurance firms under statutory management effective March 10, 2026.

The firms affected are KUSCCO Mutual Assurance Ltd, Trident Insurance Company Ltd, and Corporate Insurance Company Ltd.

In separate notices dated March 10, 2026, the regulator said it had appointed the Policyholders Compensation Fund (PCF) as the statutory manager for the three insurers in accordance with the provisions of the Insurance Act (Kenya).

“The Insurance Regulatory Authority has, with effect from 10th March 2026, placed KUSCCO Mutual Assurance Limited under Statutory Management as per Section 67C(2)(i) of the Insurance Act,” read part of one of the notices.

IRA Puts Three Insurance Firms Under Statutory Management

Under the statutory management, the three companies will not be allowed to issue new insurance contracts starting March 11, 2026.

The authority has advised existing policyholders of the affected insurers to immediately seek alternative cover from other licensed insurance companies to avoid exposure.

“Policyholders are advised to seek alternative covers from other licensed insurers to ensure that there is no unnecessary exposure,” the regulator said in the notices issued by the Commissioner of Insurance.

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The Policyholders Compensation Fund will also compensate claimants affected by the move in line with provisions of the Insurance Act.

In addition, the fund will guide long-term insurance policyholders on the management of their policies during the statutory management period.

The takeover through the statutory manager will see the regulator overseeing the operations of the troubled insurers while measures are taken to safeguard policyholders and address the companies’ financial or operational challenges.

About IRA

The Insurance Regulatory Authority is a statutory government agency established under the Insurance Act, CAP 487 of the Laws of Kenya, to regulate, supervise and promote the development of the insurance industry in Kenya.

The functions of the Authority are outlined as follows:

Ensure the effective administration, supervision, regulation, and control of insurance and reinsurance business in Kenya.
Formulate and enforce standards for the conduct of insurance and reinsurance business in Kenya.
License all persons involved in or connected with the insurance business, including insurance and reinsurance companies, insurance and reinsurance intermediaries, loss adjusters and assessors, risk surveyors and valuers.
Advise the Government on the national policy to be followed to ensure adequate insurance protection and security for national assets and national properties.

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Issue supervisory guidelines and prudential standards from time to time, for the better administration of the insurance business of persons licensed under the Insurance Act.
Conduct inquiries and share information with other regulatory authorities, and carry out any other related activities in furtherance of its supervisory role.
Educate the public regularly on the right to independently select an underwriter or broker from a list of underwriters or brokers licensed by the Authority.
Regulate the business of bancassurance offered by banks in the same manner as the ordinary insurance business, including capital requirements and disclosures.

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