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Treasury releases Sh2 billion to restore police insurance cover

Christopher Magoba by Christopher Magoba
March 6, 2026
in News
Reading Time: 3 mins read

Families of fallen police officers may soon begin receiving long-delayed compensation after the National Treasury of Kenya released Sh2 billion to pay premiums for a group life insurance policy covering officers under the National Police Service.

The funds were disbursed on February 17 through a supplementary budget presented before the National Assembly of Kenya by Treasury Cabinet Secretary John Mbadi. The payment clears part of the outstanding premiums owed to Britam Holdings, the insurer contracted to provide life insurance cover for police officers.

The move comes after months of concern over unpaid claims affecting families of officers who died or suffered permanent disability while on duty.

Emergency Spending Under Article 223

The disbursement was made under Article 223 of the Constitution of Kenya, which allows the Treasury to withdraw funds from the Consolidated Fund in cases where urgent expenditure is required before Parliament grants formal approval.

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However, the law requires the Treasury to present the spending for parliamentary scrutiny within two months. Lawmakers are expected to debate the supplementary budget in the coming weeks.

Families Left Waiting for Compensation

The funding gap had previously stalled compensation payments to bereaved families throughout 2025.

Officials from the National Police Service told the Public Accounts Committee earlier this year that insurance claims could not be processed because the service had failed to remit the required premiums to Britam.

According to NPS Secretary for Administration and Accounting Officer Bernice Lemedeket, the service faced significant funding shortages that disrupted premium payments for the group life cover.

As a result, the insurer reportedly stopped paying claims linked to deaths and permanent disabilities involving police officers and prison wardens during 2025.

Budget Shortfalls Continue to Strain the Scheme

The NPS has repeatedly cited inadequate budget allocations as the main cause of delays in remitting premiums to the insurer.

For the financial year ending June 2023, the police service required about Sh4.29 billion to meet its insurance obligations but received only about Sh2.3 billion from the Treasury. The remaining Sh1.99 billion had to be allocated later through a supplementary budget, contributing to payment delays.

The funding gap has widened further in the current 2025/2026 financial year.

NPS officials say the service received only Sh1 billion against a requested Sh7.46 billion for insurance premiums, leaving a shortfall of more than Sh6.4 billion.

Because of this deficit, Britam has reportedly only processed claims up to December 31, 2024.

Unpaid Claims Still Pending

A report prepared by the Public Accounts Committee previously indicated that claims amounting to about Sh220.1 million remained unpaid as of November 2023.

The Treasury’s latest release of Sh2 billion is expected to help restore the insurance cover and unlock delayed payments to affected families, though concerns remain about the long-term sustainability of funding for the scheme.

The situation has reignited debate about the welfare of security officers, with lawmakers and oversight bodies urging the government to ensure that insurance obligations are funded consistently to protect officers and their families.

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Christopher Magoba

Christopher Magoba

Christopher Magoba is a digital marketing and creative content strategist at Cytonn Investments, specializing in financial communications, brand storytelling, and digital marketing. He develops data-driven content on investments, capital markets, personal finance, and economic trends, translating complex financial concepts into accessible insights for investors. His expertise spans content strategy, search engine optimization (SEO), social media marketing, thought leadership, and multimedia storytelling, with a focus on enhancing investor education and brand engagement.

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