Kenyans who invested with Resolution Insurance are staring down on losses amounting to billions. This follows revelations that the insurance firm has collapsed with over Sh. 6.5 billion in client cash, insurance claims, and creditor funds.

The collapse comes after its shareholders failed to recapitalize the business.

According to the Insurance Regulatory Authority (IRA), the insurer had collected Sh. 4.1 billion in premiums from policyholders. Out of this amount, 90 percent was from medical customers.

At the same time, Resolution owed creditors and had claims from the insurance business totaling Sh. 2.5 billion.

In the first week of April 2022, Resolution Insurance was stopped from transacting any new business by the Commissioner of Insurance, after sliding into operational and financial difficulties and was unable to settle claims from clients.

“The company has been facing a number of challenges particularly relating to its ability to meet its obligations and mitigate its inherent risks, inviting the Commissioner to intervene on several occasions,” Commissioner of Insurance Godfrey Kiptum said.

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Following the collapse, policyholders will be paid Sh. 250,000 each. The Policyholders Compensation Fund (PCF) said that it will initiate the process of compensating policyholder claims within the next 14 days.

The Insurance Regulatory Authority (IRA) said claims will be capped at Sh. 250,000 as provided for in law, urging all enquiries relating to Resolution to be directed to the statutory manager for further direction.