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No extra cost for insurers, policyholders as compensation rises
The increased insurance compensation now matches the maximum Sh500,000 per-customer compensation that the Kenya Deposit Insurance Corporation (KDIC) gives affected customers when a bank collapses.
The Policyholder Compensation Fund (PCF) has said insurers and policyholders will not face additional charges to cover enhanced compensation rates for collapsed firms.
It said the revised compensation threshold of Sh500,000 per claim will be funded from the existing 0.5 percent levy on total premiums, supported by returns from investments, including government securities.
