By Violet Auma ||violetmedia8@gmail.com
The Policyholders Compensation Fund (PCF) has announced an increase in the maximum compensation payable per claim from Sh250,000 to Sh500,000, terming it a major enhancement of consumer protection within Kenya’s insurance industry.
The announcement was made during the launch of a five-day public awareness campaign in Kakamega County dubbed PCFMtaani, an initiative aimed at educating the public on the Fund’s mandate and encouraging eligible claimants to seek compensation.
Speaking at the event, PCF deputy director for corporate communications Rosemary Kavili said the increment was made beginning January this year and that the campaign seeks to build public trust and ensure affected policyholders understand the process of lodging claims.
The campaign, which has already been rolled out in 13 counties, is designed to demystify the Fund’s role as a safety net for policyholders whose insurers have been placed under statutory management or had their licenses cancelled.
“PCF is currently processing and paying claims from collapsed insurers including BlueShield Insurance Company Limited, United Insurance Company, Xplico Insurance Company and Invesco Assurance Company, all of which are under liquidation,” Kavili said.
PCF began processing claims in March 2021 following amendments to the Insurance Act in 2019 that removed the requirement for full court-ordered winding up before compensation could be paid, significantly reducing delays for affected claimants.
“As of March 31, 2025, the Fund had disbursed Sh207.5 million to claimants from various failed insurance firms,” she added.
During the Kakamega engagements, PCF is set to meet the media, boda boda riders, matatu operators, insurance agents, teachers’ unions, youth and women’s groups, religious leaders and local administrators to enhance grassroots awareness.
The Fund has urged policyholders who were insured by collapsed companies and have not lodged claims, or are yet to receive compensation, to submit their applications through its offices or official online platforms.
