IRA Places 3 Insurance Firms Under Statutory Management

The Insurance Regulatory Authority (IRA) has placed three insurance companies under statutory management in a move aimed at protecting policyholders and maintaining stability in Kenya’s insurance sector.

In a press statement released on March 11, 2026, the regulator announced that Trident Insurance Company, KUSCCO Mutual Assurance Limited and Corporate Insurance Company will now operate under statutory management in accordance with the provisions of the Insurance Act.

The Authority said the action was taken to safeguard the interests of policyholders, creditors and the general public while preventing further build-up of financial risks and liabilities within the affected companies.

The Policyholders Compensation Fund (PCF) has been appointed to take over the management and operations of the three insurers with effect from March 11, 2026.

Financial difficulties cited

According to the IRA, the decision followed extensive supervisory engagement with the three companies. During this process, the Authority observed continued deterioration in its financial positions.

The regulator noted that the insurers had failed to meet mandatory solvency requirements despite several regulatory interventions and directives aimed at helping them restore compliance.

“Despite several regulatory interventions and directives issued by the Authority to safeguard policyholders’ interests, the companies did not demonstrate sufficient capacity to restore compliance within the stipulated timelines.” The press release stated.

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Measures to protect policyholders

IRA assured policyholders, claimants, intermediaries and other stakeholders that measures are being put in place to protect their interests.

Under statutory management, the Policyholders Compensation Fund will oversee the affairs of the companies, including assessing liabilities, verifying claims and ensuring orderly resolution of outstanding obligations in line with the law.

The Authority noted that the intervention is meant to ensure that policyholders’ interests remain protected during the management transition.

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Regulator reassures the public

IRA reaffirmed its commitment to regulating and supervising the insurance industry in Kenya while promoting stability in the sector. The Authority also stated that it will continue implementing measures aimed at strengthening public confidence in the insurance market while ensuring the protection of policyholders.

Members of the public seeking clarification have been advised to contact the Authority through its official communication channels.

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Kenya Reinsurance Corporation Ltd (Kenya Re) managing director, Dr. Hillary Maina Wachinga. PHOTO/The Kenyan Wall Street.