The policyholders’ compensation fund has broken down

Since its inception in 2005, the policyholders’ compensation fund has not disbursed a single shilling despite the disappearance of several insurance companies. This fund, among others, is financed by the insurers' contributions, the policyholders' taxes and the possible penalties paid by the different market players. By June 30, 2011, the fund had nearly 1.5 billion KES (16.8 million USD). Disbursements have been suspended as no liquidation order has been confirmed, such order resulting from particularly lengthy legal procedures.