Nairobi, Jan. 12 -- The State has doubled the maximum compensation payable to policyholders of collapsed insurance companies to Sh500,000 per claim, marking a boost to consumer protection in the insurance sector.

The National Treasury and the Policyholders Compensation Fund (PCF), which handles the compensation package, has announced the increase in maximum compensation from Sh250,000, effective January 1, 2026.

The changes, which were gazetted last Friday, align with the National Financial Inclusion Strategy (NFIS) for 2025-2028, through which key State players in the financial sector, including the Insurance Regulatory Authority (IRA), had said raising the ceiling would help promote stability.

"The board of trustees of the Policyhold...