This archive report was first published on 17 July 2019.
On July 17, 2019, Treasury Secretary Henry Rotich signed a Gazette notice proposing changes to the Insurance (Policyholders Compensation Fund) regulations.
The proposed changes aim to delete regulation 11, which currently prohibits compensation for policyholders in firms declared insolvent before January 2005.
According to the Gazette notice, the fund has been idle since its establishment in 2004, with a valuation of Sh5.93 billion as of June 2016.
Policyholders contribute 0.5 percent of their premiums to the fund, equally shared between the policyholder and the insurer.
With the proposed changes, the fund will be empowered to compensate policyholders in firms declared insolvent before 2005, potentially releasing billions of shillings.
Legislators will need to approve the changes for the fund to start compensating policyholders.
