Eldoret: Residents of Uasin Gishu County have been taken through the proposed Policyholder Compensation Fund (PCF) Bill 2025, which aims to strengthen policyholder protection and insurance stability. Speaking during the public participation exercise for members of the public drawn from across the six Sub Counties in Uasin Gishu, County Hall, Eldoret, PCF representative Moses Kipton indicated that the bill, if enacted, will bolster confidence in Kenya’s insurance sector, safeguard policyholders, and align the industry with global standards.
According to Kenya News Agency, the proposed bill is a significant step toward ensuring a stable, resilient, and sustainable insurance industry in Kenya. The National Treasury and Economic Planning, in partnership with the Policyholders Compensation Fund (PCF), is advancing policyholder protection and reinforcing the stability of the insurance industry through the proposed Policyholders Compensation Fund (PCF) Bill 2025.
This bill introduces key reforms to expand compensation coverage for policyholders affected by insurer failures while enhancing the resolution framework for struggling insurers. The measures aim to strengthen public confidence and ensure a more resilient insurance sector. It seeks to strengthen policyholder protection and ensure swift resolution of failed insurers, enhancing PCF’s compensation framework by expanding eligibility criteria to benefit more claimants and policyholders. It also introduces policy continuity measures, through portfolio transfers, ensuring that policyholders continue to receive coverage even after an insurer’s license is revoked.
Additionally, the bill will increase the compensation for general insurance policyholders, surpassing the current compensation cap of Sh250,000, helping align Kenya’s insurance compensation and resolution mechanisms with international best practices. Kipton explained that, in adherence to Article 10 of the Constitution, the State Department for The National Treasury and PCF have undertaken a series of public participation engagements to seek input from key industry players and members of the public.
The first phase of these engagements commenced with key government stakeholders on January 21, 2025, followed by consultations with insurance industry stakeholders on January 31, 2025. Additionally, The National Treasury and Economic Planning, in collaboration with PCF, will conduct public consultative forums in various regions to ensure inclusivity and broad-based input from all stakeholders and members of the public across Kenya. Kipton assured the members of the public that their views will be taken into consideration when the final draft is developed.
In her remarks, Christine Wanjiku from PCF pointed out that with the enactment of the new law, the fund’s future is focused on fostering long-term stability, trust, and resilience within the insurance industry. She noted that the key priority will be enhancing a robust legislative framework that reinforces policyholder protection, enhanced coverage and safeguards for policyholders and claimants, and greater public awareness and confidence in the insurance sector. “This strategic direction aims to strengthen the insurance industry’s foundation while ensuring sustained trust and security for all stakeholders,” she said.
The participants raised various concerns regarding the insurance companies, noting discrepancies between what is explained to clients and the policies they sign on paper. Residents were urged to launch such claims to the Insurance Regulatory Authority (IRA) for further action. The members of the public, led by Joseph Ochieng, supported the government’s move through the new law to increase the compensation for general insurance policyholders, surpassing the current compensation cap of Sh250,000. They noted that it has not been fair since the amount is sometimes way below the value of the asset or item a person may have lost, such as a motor vehicle or house.
Ainabkoi Deputy County Commissioner (DCC), Edward Lelgo, who officiated the forum on behalf of the county commissioner, called on the participants to contribute to enriching the policy draft document, noting that insurance is very important to save people from various kinds of losses like crops, houses, motor vehicles, and others.
