PCF director of corporate services Mamo Abudo during PCF a Mtaani forum at Murang'a University of Technology on June 22, 2026 /ALICE WAITHERA
The Policyholders Compensation Fund has intensified a nationwide awareness campaign aimed at educating Kenyans on how to recover compensation when insurance companies collapse.
The fund has pitched camp in Murang'a county as part of its "PCF Mtaani" sensitisation programme, bringing together journalists, boda boda operators, matatu operators, insurance agents, youth groups, persons with disabilities and government administrators over a five-day outreach exercise.
Speaking during the launch of the campaign, PCF director of corporate services Mamo Abudo said the initiative seeks to bridge a longstanding information gap that has left many Kenyans stranded after their insurers went under.
"We will be here for the next five days creating awareness about the fund's mandate, particularly in compensating claimants of insurance companies that have been placed under statutory management by the regulator," he said.
Murang'a becomes the 15th county to host the programme since the campaign began, reflecting the fund's efforts to reach more Kenyans at the grassroots level and improve public understanding of insurance protection mechanisms.
Abudo said despite the fund having existed for nearly two decades, many policyholders still do not know where to turn when an insurance company collapses or loses its operating licence.
"The challenge was that many citizens did not know who PCF was or what services it provided. That is why we are now sensitising Kenyans about our work," he said.
The Policyholders Compensation Fund operates under the National Treasury and serves as a safety net for individuals and institutions whose insurers become insolvent.
The fund compensates policyholders and claimants of insurance companies whose licences have been cancelled or whose operations have been halted by regulators.
To strengthen consumer protection, the compensation limit was recently increased from Sh250,000 to Sh500,000 per claimant.
According to Abudo, the insurance industry continues to play a critical role in Kenya's economy, making it necessary for policyholders to understand the protections available to them should an insurer collapse.
"We are doing this because insurance is becoming increasingly important and almost everyone has some form of insurance policy, whether it is motor vehicle, health, education or boda boda insurance," he said.
The fund is financed through contributions from both policyholders and insurance companies. Every policyholder contributes a levy equivalent to 0.25 per cent of their insurance premium, while insurers contribute an additional 0.25 per cent.
The sensitisation campaign came against the backdrop of periodic failures within Kenya's insurance sector that have left policyholders uncertain about the fate of their claims and policies.
Data from the fund shows 15 insurance companies have collapsed over the last 20 years, with governance challenges cited as one of the major contributing factors.
Currently, four insurers are under liquidation, including Invesco Assurance Company Limited, Resolution Insurance Company Limited, Standard Assurance Kenya Limited and Concord Insurance Company Limited.
Abudo, however, noted the pace of insurance company failures has remained relatively low in recent years.
"Over the last five years, fewer than seven insurance companies have collapsed. In some cases, directors have stepped in to support revival efforts," he said.
The Insurance Regulatory Authority (IRA) determines the fate of troubled insurers after reviewing their financial and operational position, including whether they should be revived, placed under statutory management or liquidated.
The campaign also came at a time when the insurance industry is experiencing significant growth.
In 2024, Kenya generated Sh396 billion in insurance premiums covering businesses, institutions and individuals with insured assets valued at more than Sh30 trillion.
Recent years have also seen heightened scrutiny of insurers over delayed settlement of claims, financial instability and governance concerns, prompting regulators to tighten oversight of the sector.
The collapse of several insurers has previously sparked concern among policyholders who feared losing their investments and compensation claims.
Abudo said increasing public awareness remains key to restoring confidence in the industry and ensuring affected policyholders can access compensation when insurers fail.
The fund has encouraged Kenyans with claims linked to collapsed insurance firms to seek guidance and assistance through its offices and outreach programmes across the country.
