Fury erupts over IRA’s takeover of three insurance firms

The Insurance Regulatory Authority has placed Trident Insurance Company Limited, KUSCCO Mutual Assurance Limited and Corporate Insurance Company Limited under statutory management effective 10 March 2026.

The regulator cited continued deterioration in the firms’ financial positions and failure to meet mandatory solvency requirements despite repeated directives.

The Bima Intermediaries Association of Kenya has strongly criticised the decision as abrupt and harmful. Chairman Washington Ndegea described the approach as unprofessional and unethical, arguing that the authority should not impose such measures suddenly without prior public warning.

Speaking to media in Nyeri town, Ndegea warned that more than 130,000 policyholders could face millions of shillings in losses while over 600 workers risk losing jobs. He questioned the fairness of penalising insured Kenyans who trusted the regulator to protect their investments.

The association called for a more structured process in future cases, advance public alerts to allow policyholders to seek alternatives, and immediate reopening of the firms to reduce inconvenience.

Regulator defends action

The authority stressed that statutory management protects stakeholder interests during stabilisation efforts. The Policyholders Compensation Fund will handle valid claims in line with the Insurance Act and provide guidance to long-term policyholders, especially for life and pension products from KUSCCO Mutual Assurance and Corporate Insurance.

The decision follows extensive supervisory engagement and multiple failed attempts to restore compliance within set timelines.

Background on the intervention

This intervention highlights ongoing challenges for smaller insurers under stricter solvency and governance rules in Kenya.

Policyholders with the affected companies should contact the Policyholders Compensation Fund or monitor Insurance Regulatory Authority updates for claims and next steps.