One of the most shocking findings of the audit revolved around the Group Life Assurance claims. According to the contract, when an NPS or KPS officer died, their next of kin was entitled to a lump sum payment equivalent to five years of the deceased’s basic salary. This was meant to provide financial support to the family during their time of grief. However, the report revealed a disturbing truth: by November 2024, the insurer had failed to settle 21 claims, amounting to a staggering Ksh 43.5 million. This failure was not only a breach of contractual terms but also a betrayal of trust by failing the families already enduring unimaginable loss
By Mdadisi Mmoja
In a damning revelation, the Auditor General, Nancy Gathungu, unearthed serious anomalies in the Ksh 5 billion insurance cover intended to protect officers at the National Police Service (NPS) and Kenya Prisons Service (KPS) for 2023. The cover, which included Group Life Cover, Work Injury Benefits Act (WIBA), and Group Personal Accident Cover (GPA), was designed to benefit over 141,000 officers, ensuring their welfare in the event of unfortunate circumstances. However, an in-depth audit uncovered grave discrepancies that exposed both employees and taxpayers to unnecessary risk. While the Auditor General did not explicitly name the insurance company involved, media reports suggest that CIC Insurance was the insurer before being replaced by APA in April 2024.
CIC Insurance recorded an impressive 818 per cent increase in post-tax profit, rising to Ksh 1.44 billion for the year ending December 31, 2023, up from Ksh 157.137 million in FY 2022. The company’s revenue surged by 22.5 per cent, reaching Ksh 25.4 billion in FY 2023, a substantial increase from Ksh 20.7 billion the previous year.
One of the most shocking findings of the audit revolved around the Group Life Assurance claims. According to the contract, when an NPS or KPS officer died, their next of kin was entitled to a lump sum payment equivalent to five years of the deceased’s basic salary. This was meant to provide financial support to the family during their time of grief.
However, the report revealed a disturbing truth: by November 2024, the insurer had failed to settle 21 claims, amounting to a staggering Ksh 43.5 million. This failure was not just a breach of contractual terms, but also a betrayal of trust with families already enduring unimaginable loss. The contract stipulated that these claims should be settled within five days of notification, yet months and even years passed with no payment. This blatant disregard for the contract’s terms raises serious concerns about the integrity of the insurance company involved.
The Group Personal Accident (GPA) Cover was designed to provide compensation to officers injured in the line of duty, covering lost income for up to two years. Yet again, the audit painted a grim picture: 262 injury claims remained unpaid despite being duly notified to the insurer. These outstanding claims left officers, who were already injured and potentially unable to work, in a state of financial uncertainty.
Compounding this issue was the fact that these claims had been unresolved for months, if not longer. The contract was meant to ensure prompt settlement of such claims, but there appeared to be no monitoring or enforcement of these terms. This neglect directly impacted the well-being of officers who were already putting their lives at risk while on duty.
Further compounding the officers’ woes were the Work Injury Benefits Act (WIBA) claims. The WIBA provides compensation for temporary disablement due to accidents or occupational diseases. The contract specified that these claims should be compensated periodically as long as the disablement continued, but not for a period exceeding 12 months.
The audit report revealed that 509 claims remained unsettled under WIBA, with the insurer showing no signs of honouring their obligations. To make matters worse, the contract also included provisions for compensation in the event of death caused by occupational accidents, with the insurer expected to pay the beneficiary eight years’ worth of the deceased’s salary. Yet, two such death claims remained unresolved.
This represents a direct violation of the contract’s terms, leaving the families of deceased officers without the financial support they were promised.
The report also shed light on issues with the National Hospital Insurance Fund (NHIF). According to the audit, several medical claims were left unsettled, despite being dispatched to NHIF. In particular, 51 claims amounting to Ksh 8.7 million were left unpaid. This raises concerns about the effectiveness and reliability of the NHIF in providing medical support to officers, further compounding the stress and hardship faced by those already burdened with unresolved insurance claims.
But the problems didn’t end with insurance. The audit also brought to light issues within the NPS, particularly with stalled projects. Notably, construction works at the Laisamis Police Station were abandoned, and several other police service projects worth Ksh 14.8 million faced significant delays. This raised serious questions about the management and allocation of resources within the NPS.
In addition to infrastructure issues, the report revealed that 36,662 NPS employees were earning less than one-third of their basic salary. This is a clear violation of the Employment Act of 2007, which mandates that employees’ basic salary must constitute at least one-third of their net salary. This failure to adhere to basic labour laws serves as yet another example of mismanagement within the NPS.
The Auditor General’s report paints a worrying picture of negligence and mismanagement in the handling of insurance covers for the NPS and KPS. The failure to pay claims—whether for life insurance, work injuries, or medical expenses—points to a serious breakdown in the oversight and management of the contract.
It is clear that management did not adequately monitor the contract to ensure compliance with its terms, leaving members of the NPS and KPS without the benefits they were rightfully owed. This calls for urgent reforms in the management of such contracts, with a focus on accountability, transparency, and ensuring officers receive the support they need when they need it most.
This audit report serves as a wake-up call for the government and relevant authorities. The officers of the NPS and KPS risk their lives every day to ensure the safety and security of the nation, and it is only fair that their welfare is treated with the seriousness it deserves. The anomalies in the Ksh 5 billion insurance cover are not just technical errors—they are failures that directly impact the lives of those who serve our country.
It is time for the relevant authorities to take swift action to resolve these issues, ensure that all outstanding claims are settled, and implement measures to prevent such failures from recurring. The men and women in uniform deserve better than this.
