The Insurance Regulatory Authority ( IRA) has placed three insurance companies under statutory management, warning motorists and other customers not to take new insurance covers from them.
The companies affected are Trident Insurance Company Limited, KUSCCO Mutual Assurance Limited and Corporate Insurance Company Limited.
In a notice issued on Wednesday, the regulator said the action took effect on March 10 under the provisions of the Insurance Act.
Because of the decision, the three insurers are no longer allowed to issue new policies starting March 11, 2026. Customers who already hold policies with the companies have been advised to look for alternative cover from licensed insurers to avoid possible risks.
The authority also appointed the Policyholders Compensation Fund (PCF) as the statutory manager for the three companies. The fund will now take over their operations and oversee how claims are handled.
Under statutory management, the normal management teams of the affected insurers step aside while the statutory manager takes control. Regulators usually take this step when a company is facing financial difficulties or failing to meet industry rules.
Policyholders who still have active policies with the firms have been urged to review their insurance cover as soon as possible.
The PCF said it will handle eligible claims according to the law and will guide customers on what steps to take regarding their policies.
According to the regulator, the move is meant to protect policyholders and safeguard the stability of the insurance sector while the financial situation of the companies is reviewed.
Statutory management is expected to remain in place temporarily as the regulator assesses the firms.
Meanwhile, the government has also stepped up a crackdown on fake motor insurance certificates across the country.
In February, a multi-agency team involving the Association of Kenya Insurers, the traffic police, the IRA and the Insurance Fraud Investigation Unit said it had uncovered several fraud cases.
Investigations showed that at least 44 cases of forged motor insurance certificates had been detected in two regions over the past year.