policyholders compensation fund strategic plan …

PCF 2020-2025 Strategic Plan 1

POLICYHOLDERS COMPENSATION FUND

STRATEGIC PLAN

2020 – 2025


Foreword

Embracing Strategic planning is the way of organizations which expect to survive and grow in

turbulent environments. Worldwide, Strategic Management is regarded as prudent business practice.

In Kenya drawing of Strategic Plans is now a requirement for players in the public sector so as to

ensure efficiency, enhanced customer service and appropriate stakeholder considerations. The Board

of Trustees of PCF has fully embraced the process of strategic thinking, strategic planning and

strategic management in running the affairs of the Fund.

The Board of Trustees appreciates the many underlying challenges facing the insurance industry in

Kenya. The industry has multiple and unique issues which calls for coherent and comprehensive

approach. The plan will guide the Fund in the delivery of tangible results to its stakeholders for the

next five years, as well as the continued pursuit of Kenya Vision 2030 and achievement of the

Millennium Development Goals.

The Strategic Plan endeavours to address issues affecting the Fund by providing broad-based strategies

that can give it meaningful opportunities to maximize its potential in providing fair and transparent

services.

I wish to emphasize that the Strategic Plan is a statement of intent. Its key result areas will only be

realized if it is effectively implemented. Responsibility for the execution of the strategies rests with all

stakeholders.

Faisal Abass

CHAIRMAN


Preface

The Strategic Plan articulates the shared vision, mission and core functions, policy priorities, strategic

objectives, and resource requirements of the Policyholders Compensation Fund for the period

2020/2021 - 2024/2025. In developing this Strategic Plan, we have recognized the Fund’s strengths,

weaknesses, opportunities and threats. Similarly, PCF has been able to fully appreciate some of the

underlying challenges facing the Insurance sector.

The Strategic Plan reviewed outlines several strategic interventions to put the Fund on track towards

the achievement of the Vision 2030, Third Medium Term Plan (MTPIII), Big 4 Development Agenda

and Regional Development priorities. The plan prioritizes interventions aimed compensating

policyholders, institutional capacity development of the fund, risk management and ensuring value for

money in operations. These strategies address the major concerns of our stakeholders and the public.

The focus will be ensuring that the Fund has the internal capacity to deliver its mandate and that all

the Key Results areas, Strategic objectives and Key performance indicators are well aligned to the

expected outcome at the end of the strategic period 2020/2021 – 2024/2025.

To actualize the strategies and activities outlined in this document, the Fund shall continue to engage

key stakeholders. Our collective undertaking is to re-dedicate ourselves to the important task of

successfully implementing this Strategic Plan. The operational processes will be reviewed continuously

to provide any necessary strategic adjustments.

Mr. William Masita

MANAGING TRUSTEE


Acknowledgement

The formulation of this Strategic Plan was made possible through the contributions and consultations

with our stakeholders. The Board of Trustees played a major coordinating role and generated valuable

information. I wish to thank the Retirement Benefits (RBA) whose invaluable input shaped the quality

of this plan to reflect the mandate and the strategic direction of the Fund. We profoundly acknowledge

the professional input provided by Kenya School of Governments for the strategic oversight

throughout the formulation process.

To all our stakeholders who contributed either directly or indirectly to the successful preparation of

the Strategic Plan, we thank you most sincerely and encourage you to partner with us in the

implementation of the Strategic Plan.


Acronyms and Abbreviations

PCF – Policyholders Compensation Fund

MTP – Medium Term Plan

RBA – Retirement Benefits Authority

PESTEL – Political, Economic, Social, Technological, Environmental and Legal

SWOT – Strengths, Weaknesses, Opportunities and Threats

MTER – Medium Term Evaluation and Review

SDG – Sustainable Development Goals

AU – African Union

GDP – Gross Domestic Product

GoK – Government of Kenya

SCAC – State Corporations Advisory Committee

ICT – Information and Communications Technology

KRA – Key Result Area

QMS – Quality Management System

AG – Attorney General

MoU – Memorandum of Understanding

OSHA – Occupational Safety and Health Act

MERL – Monitoring, Evaluation, Reporting and Learning

Kshs. – Kenya Shillings

MT – Managing Trustee

CMTS – Chief Manager, Technical Services

CMCS – Chief Manager, Corporate Services

CS – Corporation Secretary

HR – Human Resource

TNA – Training Needs Assessment

CSI – Corporate Social Investments

ISO – International Standards Organization

ISMS – Information Security Management System


Definition of Terms

Baseline: Baseline is an analysis describing the initial state of an indicator before the start of a

project/programme, against which progress can be assessed or comparisons made.

Claimant: A person eligible to make a claim from an insurer that accrues from an insurance contract.

Compensation: Benefits paid out to a policyholder in the occurrence of a loss of an insurer placed

under a manager.

Indicator: An indicator is a sign of progress/change that results from a project. It measures a change

in a situation or condition and confirms progress towards achievement of a specific result. It is used

to measure a project impact, outcomes, outputs and inputs that are monitored during project

implementation to assess progress.

Insurer: A person registered under the Insurance Act and carries out insurance business including re-

insurance.

Key Results Areas: This is an outline of the organization’s areas of focus. It also refers to the general

areas of outputs or outcomes for which an organization's role is responsible.

Liquidation: Process by which a company is legally brought to an end.

Outcome Indicator: This is a specific, observable, and measurable characteristic or change that will

represent achievement of the outcome. Outcome indicators include quantitative and qualitative

measures. Examples: Enrolment rates, transition rates, mortality rates etc.

Outcome: Measures the intermediate results generated relative to the objective of the intervention. It

describes the actual change in conditions/situation as a result of an intervention output(s) such as

changed practices as a result of a programme or project.

Output: Immediate result from conducting an activity i.e. goods and services produced.

Performance Indicator: A measurement that evaluates the success of an organization or of a

particular activity (such as projects, programmes, products and other initiatives) in which it engages.

PESTEL Analysis: It is a framework or tool used to analyze and monitor the environmental

(external) factors that have an impact on an organization.

Policyholder: A legal holder of the policy for securing a contract with an insurer.

Programme: A grouping of similar projects and/or services performed by a Ministry or Department

to achieve a specific objective; the programmes must be mapped to strategic objectives.

Project: A project is a set of coordinated activities implemented to meet specific objectives within

defined time, cost and performance parameters. Projects aimed at achieving a common goal form a

programme.

Statutory Management: Process by which a company is placed under a manager appointed as per

the insurance Act (Sec. 67C).

Strategic Objectives: These are what the organization commits itself to accomplish in the long term;

they establish performance levels to be achieved on priority issues and measures of success in fulfilling

critical mission statement elements.


Strategic Planning: It is the process of defining an organization's strategy or direction, and making

decisions on allocating its resources to pursue this strategy; it involves setting goals, determining

actions to achieve the goals, and mobilizing resources to execute the actions.

SWOT Analysis: It is used for understanding the strengths and weaknesses (internal factors) of the

organization and for identifying both the opportunities open to the organization and the threats it

faces (external factors).

Target: A target refers to planned level of an indicator achievement.

Winding Up: Process by which a manager appointed in the Act undertakes management of the

company


Table of Contents

Foreword ..................................................................................................................................................... 2

Preface ......................................................................................................................................................... 3

Acknowledgement ...................................................................................................................................... 4

Table of Contents ........................................................................................................................................ 8

List of Tables ............................................................................................................................................. 11

List of Figures ............................................................................................................................................ 12

CHAPTER ONE: HISTORICAL, LEGAL AND INSTITUTIONAL FRAMEWORK .................... 13

1.1 Introduction .................................................................................................................................... 13

1.2 Background ..................................................................................................................................... 13

1.3 Mandate .......................................................................................................................................... 13

1.4 Relevant Legislation ........................................................................................................................ 14

1.5 Policies and Guidelines .................................................................................................................... 14

1.6 Fund’s Compliance with the Constitution of Kenya ........................................................................ 14

1.7 Services Offered by the Fund .......................................................................................................... 15

1.8 Rationale for Development of the Funds’ Strategic Plan .................................................................. 15

1.9 Methodology of Developing the Strategic Plan ............................................................................... 15

1.10 PCF Role in the National Development Agenda ............................................................................. 15

1.10.1 Kenya Vision 2030 ............................................................................................................... 15

1.10.2 Medium Term Plan III (2018-2022) ...................................................................................... 16

1.10.3 The Big 4 Agenda ................................................................................................................. 16

1.10.4 Africa Agenda 2063 .............................................................................................................. 16

1.10.5 Sustainable Development Goals ........................................................................................... 17

CHAPTER TWO: SITUATIONAL ANALYSIS .................................................................................... 18

2.0 Introduction .................................................................................................................................... 18

2.1 Achievements, Challenges, Lessons Learnt and Way forward .......................................................... 18

2.1.1 Achievements ........................................................................................................................... 18

2.1.2 Challenges faced ....................................................................................................................... 18

2.1.3 Way forward ............................................................................................................................ 19

2.2 SWOT Analysis ............................................................................................................................... 19

2.2.1 Strengths .................................................................................................................................. 19

2.2.2 Weaknesses .............................................................................................................................. 19

2.2.3 Opportunities ........................................................................................................................... 20


2.2.4 Threats ..................................................................................................................................... 21

2.3 PESTEL Analysis ............................................................................................................................ 21

2.3.1 Political Factors ........................................................................................................................ 22

2.3.2 Economic Factors .................................................................................................................... 22

2.3.3 Social Factors ........................................................................................................................... 22

2.3.4 Technological Factors .............................................................................................................. 23

2.3.5 Environmental Factors ............................................................................................................. 23

2.3.6 Legal Factors ............................................................................................................................ 24

2.4 Stakeholder Analysis ........................................................................................................................ 24

CHAPTER THREE: STRATEGIC FOCUS .......................................................................................... 27

3.0 Introduction .................................................................................................................................... 27

3.1 Vision .............................................................................................................................................. 27

3.2 Mission ........................................................................................................................................... 27

3.3 Core Values ..................................................................................................................................... 27

3.4 Motto .............................................................................................................................................. 27

3.5 Key Results Areas ........................................................................................................................... 27

CHAPTER FOUR: IMPLEMENTATION AND CO-ORDINATION FRAMEWORK .................. 29

4.0 Introduction .................................................................................................................................... 29

4.1 Staffing Levels ................................................................................................................................. 29

4.2 Governance Structures .................................................................................................................... 29

4.3 Finance Plan .................................................................................................................................... 31

4.3.1 Resource Mobilization and Utilization .......................................................................................... 32

4.3.2 Strategies for Resource Mobilization ............................................................................................ 32

4.4 Strategic Implementation ................................................................................................................. 32

4.4.1 Pre-Implementation ..................................................................................................................... 33

4.4.2 During Implementation ............................................................................................................... 33

4.5 Linkages and Collaborations ............................................................................................................ 34

4.6 Enterprise Risk Management ........................................................................................................... 34

CHAPTER FIVE: MONITORING, EVALUATION, REPORTING AND LEARNING ............... 38

5.0 Introduction .................................................................................................................................... 38

5.1 Monitoring, Evaluation, Reporting and Learning Framework .......................................................... 38

5.1.1 Monitoring, Evaluation, Reporting and Learning Strategies .......................................................... 38

5.1.2 Monitoring and Evaluation Team ................................................................................................. 38

5.1.3 Cascading the Plan to all Staff ...................................................................................................... 39

5.1.4 Departmental and Individual Annual Work Plans......................................................................... 39


5.1.5 Data and Information Collection Procedures ............................................................................... 39

5.1.6i Scheduled Meetings and Workshops ........................................................................................... 39

5.1.7 Linking MER &L to Performance Management ........................................................................... 39

5.2 Progress Reports ............................................................................................................................. 40

5.3 Performance Review ....................................................................................................................... 40

5.3.1 Annual performance Review ........................................................................................................ 40

5.3.2 Mid Term Evaluation and Review (MTER) .................................................................................. 40

5.3.3 End Term Review ........................................................................................................................ 40

5.3.4 Post Implementation .................................................................................................................... 41

5.4 The Implementation Matrix............................................................................................................. 41

Appendices ................................................................................................................................................. 42

Appendix 1: PCF Strategic Plan Implementation Matrix........................................................................... 42

Appendix 1: Monitoring and Evaluation Framework ................................................................................ 51

Appendix 1: Strategic Development Planning Team ................................................................................. 53


List of Tables Table 2.1: Challenges faced by PCF .............................................................................................................. 18

Table 2.2: Strengths ...................................................................................................................................... 19

Table 2.3: Weaknesses .................................................................................................................................. 19

Table 2.4: Opportunities .............................................................................................................................. 20

Table 2.5: Threats ......................................................................................................................................... 21

Table 2.6: Political Factors ........................................................................................................................... 22

Table 2.7: Economic factors ......................................................................................................................... 22

Table 2.8: Social Factors ............................................................................................................................... 22

Table 2.9: Technological Factors .................................................................................................................. 23

Table 2.10: Environmental Factors ............................................................................................................... 23

Table 2.11: Legal Factors .............................................................................................................................. 24

Table 2.11: Stakeholder Analysis .................................................................................................................. 24

Table 3.1: Strategy Matrix ............................................................................................................................. 28

Table 4.1: PCF Staff Requirements ............................................................................................................... 29

Table 4.2: Financial Requirements ................................................................................................................ 31

Table 4.3: Cumulative Projected Levels of Funding by Sources .................................................................... 32

Table 4.4: Enterprise Risk Analysis ............................................................................................................... 35


List of Figures Figure 4.1: Policyholders Compensation Fund Organization Structure .................................................................. 30


CHAPTER ONE: HISTORICAL, LEGAL AND

INSTITUTIONAL FRAMEWORK

1.1 Introduction

This Chapter presents the background, mandate, functions, institutional framework, legislations,

policies, guidelines, protocols and treaties relevant to the Policyholders Compensation Fund (PCF). It

also provides the rationale and process of developing the strategic plan as well as the PCF’s role in

national agenda.

1.2 Background

Policyholders Compensation Fund (PCF) also known as ‘the Fund’ is a State Corporation under the

National Treasury and Planning that was established through the Legal Notice No.105 of 2004 and

commenced its operations in January 2005. The Fund was established for the primary purpose of

providing compensation to claimants of an insurer that has been put under Statutory Management

and for the secondary purpose of increasing the general public’s confidence in the insurance sector.

The decision to establish the Fund was informed by the collapse of several Insurance companies prior

to the year 2005. The Fund is governed by section 179 of the Insurance Act (Cap 487) and the

Insurance (Policyholders Compensation Fund) Regulations, 2010.

The Government of Kenya provided a seed capital of Kshs 35million for operationalization of the

Fund in January, 2005. A pre-funded model for the Fund was adopted which required insurers and

policyholders to equally contribute a levy of 0.5% on gross direct premiums written. Currently, PCF

has an asset base value of 12 Billion as at the end of the financial year 2019/2020.

The maximum compensation payable by the Fund on any one claim lodged by a Policyholder was

initially capped at KShs. 100,000.00. This amount has since been reviewed to Kshs. 250,000.00 after

consultations between the Cabinet Secretary, National Treasury and Planning, and the Board of

Trustees of the Fund.

The administration of the Fund is vested in a Board of Trustees which will comprise of; a) A Chairman appointed by the Cabinet Secretary in charge of National Treasury and Planning;

b) The Commissioner of Insurance or a representative appointed in writing;

c) The Attorney General or a representative appointed in writing;

d) One person nominated by the body representing interests of insurers;

e) One person nominated by insurance brokers;

f) One person representing the general public; and

g) The Managing Trustee.

The Managing Trustee oversees the operation of the Fund and is responsible to the Board of Trustees.

Chief Managers and heads of selected units within the Fund report to the Managing Trustee as

depicted in Figure 4.1.

1.3 Mandate

Policyholders Compensation Fund as stated in the Insurance Act is mandated to:

a) Provide compensation to the policyholders of an insurer under Statutory Management;


b) Monitor, in consultation with the Commissioner where necessary, the risk profile of any insurer;

c) Advice the Minister on the national policy to be followed with regard to matters relating to

compensation of policyholders and to implement all government policies relating thereto;

d) Participate in the statutory management of an insurer placed under statutory management by the

regulator;

e) Liquidate an insurer as may be ordered by a court; and

f) Perform such other functions as may be conferred on it by this Act or by any other written law.

1.4 Relevant Legislation

The legislation that is relevant to the mandate of the Fund includes:

a) The Constitution of Kenya, 2010

b) The Insurance Act (Cap 487), section 179

c) The Insurance (Policyholder Compensation Fund) Regulations, 2010

d) The Companies Act (Cap 486)

e) The Trustee Act (Cap 167)

f) Insurance (Motor Vehicle Third Party Risks) Act, (Cap 405)

g) Other relevant legislations

1.5 Policies and Guidelines

The following policies and guidelines are relevant to the mandate of the Fund:

(a) Kenya Vision 2030;

(b) MTP III;

(c) The Big Four Agenda;

(d) Mwongozo, Code of Governance for State Corporations;

(e) Sector Performance Standards;

(f) Performance Contracting Guidelines;

(g) Sustainable Development Goals;

(h) Africa Agenda 2063;

(i) The Fund’s policies and procedure manuals; and

(j) Other policies, circulars and guidelines issued by the Government from time to time.

1.6 Fund’s Compliance with the Constitution of Kenya

PCF recognizes the Constitution of Kenya 2010 as the Supreme Law which binds all persons and all

State Organs at all levels. The Fund shall uphold and defend the Constitution of Kenya, and with

respect to its Mandate as espoused by the following Articles:

a) Article 6 (3)– Access to services;

b) Article 10 (1)(2)– The national values and principles of governance;

c) Article 21(3) – Address the needs of vulnerable groups within and without the PCF including

women, persons with disabilities, children, youth, members of minority or marginalized

communities and members of particular ethnic, religious or cultural communities;

d) Article 35(1) – Access to information;

e) Article 46 – Consumer rights;

f) Article 50 – Fair hearing;

g) Chapter Six – Leadership and integrity;


h) Article 201 – Principles of public finance;

i) Article 227 – Procurement of public goods and services;

j) Article 232 – The values and principles of public service;

1.7 Services Offered by the Fund

In fulfilling its mandate, the Fund offers the following services:

a) Compensation to claimants;

b) Provision of advice relating to compensation of policyholders;

c) Perform statutory management of insurer placed under a manager appointed under section 67C

(2) or whose license has been cancelled under the Insurance Act;

d) Monitor risk profile of insurer; and

e) Liquidate an insurer as may be ordered by the High Court.

1.8 Rationale for Development of the Funds’ Strategic Plan

The Strategic Plan provides the framework to guide the development and implementation of annual

work plans to ensure efficient and optimal use of resources to achieve the set goals and objectives.

The development of this Strategic Plan is necessitated by the need to;

a) Guide on the delivery of the Fund’s mandate

b) Ensure operational excellence; and

c) Aligning the Fund’s activities with the national agenda.

1.9 Methodology of Developing the Strategic Plan

The Strategic Plan was developed through a consultative process which involved staff and the Board

of Trustees. They brainstormed on internal and external environment that generated key result areas,

strategic objectives, strategies and activities. Appropriate legal instruments, policies and other relevant

documents were referred to in realignment of the Strategic Plan with the legal mandate of the Fund.

Finally, the Strategic Plan was subjected to the stakeholders for validation.

1.10 PCF Role in the National Development Agenda

This section presents the national development agenda, specifically, the national development blueprint, the Kenya Vision 2030 (MTP III, and the Big Four Agenda); the Sustainable Development Goals (SDGs) and the African Union (AU) 2063 Agenda. The role of the Policyholders Fund in the realization of the National Development Agenda has also been explicated.

1.10.1 Kenya Vision 2030

The Kenya Vision 2030 considered the national long term development blueprint to spell out the national development plan for the country. The Vision aspires to transform Kenya into a newly-industrialized, middle-income country providing a high quality of life to all its citizenry by 2030 in a clean and secure environment. The Vision is anchored on three (3) key pillars as follows: a) The Economic Pillar aimed at achieving a sustained economic growth rate of 10 per cent till 2030

to avail sufficient resources for achieving the Vision goals. As a State Agency operating in the financial sector, PCF’s contribution to the attainment of Vision 2030 will primarily be through this pillar where the insurance sector falls as follows:

i) Increase the level of savings in the financial sector by boosting the confidence of the public in the sector;

ii) Secure private investments through prompt compensation of policyholders;


iii) Increase the amount of public revenues by investing in Government Securities hence availing funds for national development;

iv) Contribute to the stability of the country’s macro-economic environment by ensuring the financial sector (insurance industry) is stable.

b) The Social Pillar seeks to realize a just, cohesive and equitable social development in a clean and secure environment. Critical priorities in Social pillar have a connection with the mandate and functions of PCF. Through the execution of its mandate, PCF will contribute to poverty reduction and human resource development.

c) The Political pillar seeks to entrench issue-based, people-centred, results-oriented and accountable democratic system in the country. Through execution of its mandate, PCF will contribute to better governance, a key priority area in the pillar.

1.10.2 Medium Term Plan III (2018-2022)

Implementation of the Vision 2030 is through successive five-year Medium Term Plans (MTPs). The current Medium Term Plan, MTP III for 2018 – 2022, envisions moving the Kenyan economy towards a high growth trajectory to achieve 7 per cent economic growth by the end of the year 2022 through increasing the level of savings and investment, enhancing productivity of investment in all sectors of the economy, consolidating the fiscal stance in a stable macro-economic environment, and effecting the much desired structural changes in the economy towards increasing the shares of the manufacturing, industrial and export sectors. In this regard, PCF through the implementation of its Strategic Plan will contribute to the development of the Architecture of the Financial Services Sector, a programme aimed at enhancing stability and competition in the Financial Sector.

1.10.3 The Big 4 Agenda

The Big 4 Agenda represents President Uhuru Kenyatta’s development blueprint, detailing what his administration will focus on in his last term to improve the living standards of Kenyans, grow the economy and leave a lasting legacy. The Big 4 Agenda comprises of food security; affordable housing; manufacturing; and affordable healthcare. In the third Medium Term Plan (MTP III), the following policies, programmes and projects have been prioritized to facilitate the implementation of the Big 4 Agenda: a) Raise the share of manufacturing sector to 15 per cent of GDP; b) Ensure that all citizens enjoy food security and improved nutrition by 2022; c) Achieve Universal Health Coverage; d) Deliver at least five hundred thousand (500,000) affordable housing units.

Implementation of the Big Four initiatives is expected to usher in a broad-based inclusive and sustainable economic growth, faster job creation, and a reduction of poverty and inequality. For these initiatives to succeed, closer cooperation and harmony between the national and county governments and other key stakeholders will be critical. In fulfilling its mandate, PCF will remain committed to contribute to the realization of the Big Four initiatives by contributing to the enhancement of the financial safety net arrangements for stakeholders through timely management of compensation for unsettled insurance claims of insolvent insurers, mobilize resources through efficient collection of contributions for placement in the financial markets for onward lending to stakeholders, participate in the review of the Insurance Act to increase uptake of Private Health Insurance to complement the National Health Insurance Fund and sensitize its stakeholders on the Big Four initiatives.

1.10.4 Africa Agenda 2063

Agenda 2063 “the Africa we want” is Africa’s master plan for transforming the continent into the global powerhouse of the future. It is a strategic framework for the socio-economic transformation of the continent within a 50 year period, from 2013 to 2063. With this plan, the African Union (AU)


seeks to prioritize inclusive social and economic development, continental and regional integration, democratic governance and peace and security inter alia geared towards repositioning Africa to becoming a dominant player in the global arena. The implementation of the Agenda is to be through a successive 50-year implementation plan ending in 2063 from 2013. The Agenda has seven aspirations namely: a) A prosperous Africa based on inclusive growth and sustainable development; b) An integrated continent; politically united and based on the ideals of Pan-Africanism and the

vision of Africa’s Renaissance; c) An Africa of good governance, democracy, respect for human rights, justice and the rule of law; d) A peaceful and secure Africa; e) An Africa with a strong cultural identity, common heritage, shared values and ethics; f) An Africa, whose development is people-driven, relying on the potential of African people,

especially its women and youth, and caring for children; and g) Africa as a strong, united, resilient and influential global player and partner.

PCF will contribute to the attainment of the above through the promotion of social security and sustainable and inclusive economic growth through protection of the vulnerable insurance consumers, promotion stability in the financial sector (insurance) through risk monitoring and reporting, enhancing the public confidence in the insurance sector through prompt compensation of claimants, instill and promote good governance and ethical practices in the insurance industry and ensure prudent fiscal management and generation of revenues through strategic investments.

1.10.5 Sustainable Development Goals

The Sustainable Development Goals or Global Goals are a collection of 17 interlinked goals designed to be a "blueprint to achieve a better and more sustainable future for all". The SDGs were set in 2015 by the United Nations General Assembly and are intended to be achieved by the year 2030. The Government of Kenya (GoK) has committed to embed SDGs in her national development plans. The Vision 2030 and the Big Four Agenda all have been linked with the SDGs, especially, in the three key dimensions namely: Economic, Social, and Environmental. In executing her mandate, PCF will contribute to the realization of the following SDG’s:

a) Goal 1: End poverty PCF will promote poverty reduction through ensuring prompt compensation to claimants and hence enhancement of financial security.

b) Goal 8: Decent work and Economic Growth

PCF has a critical role to play in promoting sustainable economic growth in Kenya through promoting the confidence of the public in the financial sector thus increasing financial inclusivity, protecting the public through payment of compensation, mobilization of resources through collection of revenues, and the investment of the same in Government Securities to facilitate the realization of National goals.

c) Goal 16: Peace, Justice and Strong Institutions

Strong financial sector institutions remain critical to development. PCF will play her role to ensure a strong and secure financial sector by building capacity and forging strategic partnerships to efficiently undertake its mandate including risk monitoring, research and promoting governance.

https://en.wikipedia.org/wiki/United_Nations_General_Assembly


CHAPTER TWO: SITUATIONAL ANALYSIS

2.0 Introduction

A situational analysis was undertaken to determine the achievements realized, challenges faced and

the lessons learnt as the Fund during the planned period. An environmental analysis was conducted

using the Strength, Weakness, Opportunity and Threats (SWOT), Political, Economic, Social,

Technological, Environmental and Legal (PESTEL) models, and as well as Stakeholder Analysis.

2.1 Achievements, Challenges, Lessons Learnt and Way forward

2.1.1 Achievements

The following are some of the specific achievements made by the Fund:

a) Protection of claimants i) Improved compensation framework by increasing the compensation amount from Kshs

100,000 to Kshs 250,000; ii) Expanded the scope of compensation coverage to include third-party claimants; iii) Improved the timeliness of compensation to policyholders to when a company is

immediately placed under statutory management or licensure withdrawal; and iv) Protection of policyholders through exemption from moratorium placed by statutory

managers; b) Corporate governance

i) Recruitment of a Managing Trustee; ii) Expansion of PCF mandate to include statutory management and liquidation of insurance

companies; iii) Improved corporate governance by changing composition of the Board of Trustees making

it independent; and iv) Development and adoption of PCF policies and procedure manuals.

c) Resourcing/ Fund management i) Growth of the Fund currently to about Kshs 12 billion as at 30th June 2020 from seed money

of Kshs. 35 million in 2005. ii) Corporate social responsibility through participation and contribution towards Beyond Zero

and Cerebral Palsy Society of Kenya

2.1.2 Challenges faced

In the current operations, PCF has faced the challenges as enumerated in Table 2.1.

Table 2.1: Challenges faced by PCF

Challenge Strategic Intervention

Inadequate staffing levels Required staff will be hired upon approval of the organization structure by SCAC and adoption by the Board of Trustees.

Inadequate office space Provisions have been made to acquire office space during financial year 2021/2022.

The Board of Trustee is not fully constituted

Managing Trustee will follow-up with appointing authorities to fill vacant positions.

Low awareness of PCF mandate by the general public

The Fund will re-brand to enhance visibility during the plan period.


2.1.3 Way forward

a) For the protection of policyholders, there should be inclusive laws and regulations to anchor Fund’s activities.

b) For the Fund to undertake the liquidation of insurance company, there is need to align the Insurance and Insolvency Acts.

c) There is need to hasten the process of acquiring requisite staff infrastructure and office space for timely roll-out of the Fund’s activities.

d) The Fund should collaborate and create partnership with relevant stakeholders for information sharing to ensure efficiency in service delivery.

e) The Fund should strengthen its policies and regulatory framework to create harmony with the existing policy and regulatory framework.

2.2 SWOT Analysis

Policyholders Compensation Fund has strengths and limitations that can support or limit the

achievements of its mission. The following table indicates environmental factors, their strategic

implications and goes further to recommend appropriate strategic responses.

2.2.1 Strengths

The strengths for the Fund are outlined in Table 2.2.

Table 2.2: Strengths

STRENGTHS STRATEGIC IMPLICATION STRATEGIC RESPONSE

a) Established under Insurance Act

Body corporate

Clear mandate

Guaranteed government support

Operational support by Insurance Regulatory Authority

Comply with provisions of Insurance Act and related regulations

Propose appropriate legal and regulatory amendments

Develop appropriate policies and regulations

b) A Competent Board of Trustees

Strategic envisioning of the Fund Enhance capacity of the Board

Ensure prompt information sharing

Facilitate full composition or Board of Trustees

c) Appointment of Managing Trustee

Prompt decision making and implementation

Develop capacity of Managing Trustee

Facilitate institutional strengthening

d) Protected source of income

Reliable source of income

Ability to compensate defined claimants

Comply with the law in utilization of the funds

Come up with an administrative expenses provision for the Fund

2.2.2 Weaknesses

The Fund will make efforts to minimize the weaknesses as identified in Table 2.3.

Table 2.3: Weaknesses

WEAKNESSES STRATEGIC IMPLICATION STRATEGIC RESPONSE

a) Inadequate staffing levels (skills and numbers)

Delayed service delivery

Non-achievement of set performance targets

Determine optimal staffing levels.

Seek approval of proposed organizational structure and staff


WEAKNESSES STRATEGIC IMPLICATION STRATEGIC RESPONSE

establishment for appropriate categorization by SCAC.

Engage officers as per staff establishment.

Continuous staff development.

Strengthen performance management and reward system.

Outsource services.

Improve terms and conditions of service continuously.

b) Inadequate institutional operating framework

Inability to achieve mandate/ strategic objectives effectively

Establish and implement the enterprise risk management framework

c) Inadequate compensation framework

Unclear mode of compensation Develop and implement appropriate compensation structure

d) Inadequate claimant data

Delay in decision making and planning

Establish shared data bank

e) Low visibility Low awareness about the Fund Rebrand the Fund

Sensitize the public about the Fund

2.2.3 Opportunities

The Fund will have a competitive edge by harnessing the following opportunities as identified in

Table 2.4.

Table 2.4: Opportunities

OPPORTUNITIES STRATEGIC IMPLICATION STRATEGIC RESPONSE

a) Vibrant financial markets

Potential growth of Insurance sector Enhanced capacity of the Fund

Continuous sensitization on sector policy, legal and regulatory framework

Recommend policy, legal and regulatory reviews to accommodate emerging issues

b) Goodwill from stakeholders in the industry

Increased business

Increased technical support

Ensure adequate and timely compensation

Develop and implement stakeholder engagement framework

c) Elaborate policy, legal and regulatory frameworks in the insurance sector

Clear areas and modalities of engagement

Comply with legal and regulatory provisions

Sensitize stakeholders on the frameworks

Collaborate with players in the industry


OPPORTUNITIES STRATEGIC IMPLICATION STRATEGIC RESPONSE

d) Vibrant media Platform for enhanced visibility Optimize utilization of various media channels to disseminate PCF information

e) National ICT infrastructure

Ease of national reach

Improved service delivery

Optimize use of ICT services

f) Established Insurance Guarantee Schemes

International best practice Strategic collaboration and partnership

2.2.4 Threats

For effective service delivery, the Fund is cognizant of the following threats as enumerated in Table

2.5.

Table 2.5: Threats

THREATS STRATEGIC IMPLICATION STRATEGIC RESPONSE

a) Fraudulent claimants for compensation

Increased illegal claims

Increased cost of business

Depletion of the compensation funds

Develop a robust fraud risk assessment

Establish and implement an investigative function of the Fund

Develop and implement policyholders compensation framework

Sensitize stakeholders on the policyholders compensation framework

Propose amendments for to the policyholders compensation framework

Review and implement the enterprise risk management framework

b) Disruptive policy, legal and regulatory changes

Change in mode of doing business

Unpredictable business environment

Comply with the changes in the policy, legal and regulatory frameworks

Apprise stakeholders on the changes in the policy, legal and regulatory frameworks

c) Cyber crime Disruption of services and loss of data

Enhance IT security systems

Develop business and IT continuity arrangements

d) Increases in cost of premium

Low uptake of insurance services

Low revenue to the Fund

Review contribution structure

2.3 PESTEL Analysis

PESTEL analysis was undertaken in order to describe and appreciate the environment under which PCF operates. Such analysis allowed the Board to find the best match between environmental trends and internal capabilities.


2.3.1 Political Factors

Table 2.6: Political Factors

POLITICAL FACTORS STRATEGIC IMPLICATION STRATEGIC RESPONSE

a) Changes in government Changes in government policies and

priorities Comply with policy and

regulatory framework

Align the Fund’s policies

with the prevailing

government development

agenda

b) Regional Integration Potential growth of the industry Ratify policy, legal and

regulatory regimes of nations

in the integration framework

Sensitize industry players on

the prevailing legal and

regulatory frameworks

c) Devolution Potential growth of the industry Sensitize the public on

Insurance compensation

schemes

2.3.2 Economic Factors

Table 2.7: Economic factors

FACTOR STRATEGIC IMPLICATION STRATEGIC RESPONSE

a) Fluctuating exchange rates

High inflation rates

Depressed economic growth

Low ability of PCF to pay compensation to claimants

Low uptake of insurance products

Managing the investment risk

b) Fluctuating interest rates

Fluctuating return on investments Managing the investment risk

Review compensation rate

c) Strong fiscal policy stance

Growth of the Fund Align Funds’ policy to prevailing fiscal policies

d) Vibrant financial markets

Enhance uptake of insurance products Encourage investment in

financial markets

e) Low savings Low uptake of insurance products Educate the public

2.3.3 Social Factors

Table 2.8: Social Factors


a) Value systems More compensation claims Influence culture change Fraud risk management



Enhance attitude change Sensitize the public on uptake of insurance products

b) Demographic distribution

Growth in uptake of insurance

products

Sensitize the public on uptake of insurance products

c) Education levels Increased uptake of insurance products

Sensitize the public on uptake of insurance products

d) Increased poverty levels

Low disposable income Sensitize the public on uptake of insurance products

Prompt compensation of policyholders

e) Negative perception of financial security

Negative growth Create awareness

2.3.4 Technological Factors

Table 2.9: Technological Factors


a) Automation Growth Sustain

b) Technological infrastructure

Quick change is expensive in cost Manage risk

c) Industry standards Good for growth Strive for global standards

d) Policyholders standards

Good for growth Match

e) The Fund must fully appraise itself with current changes

Growth Remain relevant and provide quality and effective results to its customers

2.3.5 Environmental Factors

Table 2.10: Environmental Factors


a) Heavy rains and dry spell result in natural calamities

Increase in floods and earthquake claims thus adversely affecting our profits levels

Increased demand in taking insurance cover

Survey and risk improvement recommendations to clients

Actively and proactively monitor weather patterns and adopt a selective approach on acceptance of some risks

b) Drought No exports (loss of premiums)

High demand for more products

Diversification of client base

c) Campaigns to go green Affect our plastic manufacturing

clients which may mean loss of

business

Diversify our client base.



d) Pollution Can lead to liability claims Prudent and selective underwriting

Pre acceptance surveys

e) Environment law Restrictions on insured business

Loss of business

Insure environmentally

compliant clients

f) Unpredictable weather patterns

Need to transfer the risk hence

increased need for insurance. Those

who are insured will seek covers and

increase premium

Take up the increase of insurance

opportunities with prudent

underwriting

g) Global warming Increase in marine and flood related

claims

Take up the increase of insurance

opportunities with prudent

underwriting

2.3.6 Legal Factors

Table 2.11: Legal Factors


a) Dynamic legal framework

Uncertainty in the industry Offer advisory services on legal

review process

b) Lengthy legal process Slows down execution Lobby for favorable legislation

c) Implementation of the key pillars of the new Constitution of Kenya

Has a positive bearing in the Fund if well managed especially the court processes of liquidation.

Consumer protection

Enhance governance and disclosure requirements

PCF to institutionalize this

2.4 Stakeholder Analysis

A stakeholder is any person, group or institution that has an interest in a given activity or institution.

In this regard, the PCF will maintain a culture of continued interaction and working in partnership

and collaborations with its stakeholders in the execution of its mandate. The interests and expectations

of our stakeholders influences the Fund’s functions and hence the need to build good working

relationships. The following is a summary of PCF stakeholders.

Table 2.12: Stakeholder Analysis

Stakeholder Stakeholder Core

Function

Stakeholder Expectations PCF Expectations

Parliament Legislation Execution of the Fund’s mandate

Pass supportive legislations

Parliamentary appropriation



Function


Adherence to the policy, legal and regulatory framework

Prudent utilization of public resources

Adequate oversight

The National

Treasury &

Planning

Planning and disbursement of Government funds

Adherence to the policy, legal and regulatory framework

Prudent management of public resources

Approval of policy, proposals and recommendations

Advisory on policies, procedures and guidelines

Timely appointment of Board of Trustee

Membership in the Board of Trustees

Attorney General’s Office

Government legal adviser

Adherence to established legal framework

Timely request for legal advice and representation

Representation in litigations

Legal advisory on matters relating to the functions of PCF


County Government

Devolution of services

Mobilization of target group for consumer education

Collaborations during consumer education

Central Bank

of Kenya

Regulating Government business transaction

Compliance with the financial sector regulatory framework

Conducive financial sector regulatory framework

Effective management of investment in Government securities

Insurance

Regulatory

Authority

Regulating insurance industry players

Compliance with the Insurance Act

Collaboration on areas of common interest areas

Stability of the insurance industry

Effective regulation of the insurance industry

Up-to-date suitable data on insurance companies

Collaboration on areas of common interest areas


Policyholders Consumer of insurance products

Timely processing and payment of compensation

Consumer education

Timely filing of claims

Full disclosure of information

Insurers Provide insurance products

Consumer education

Mechanisms to detect and prevent fraud

Compliance of the Insurance Act



Function


Insurers under

statutory

managers

Provide cooperation

Compliance with law and regulatory framework

Timely provision of information

Official

receivers and

liquidators

Provide data and cooperation

Information of wound-up insurers

Reimbursement of compensation to claimants

Learning and

Research

Institutions

Knowledge management

Collaborations on training and capacity building

Collaborations on capacity development

Policy research that informs decisions

Media Dissemination of information to the public

Collaborations on consumer education

Collaborations on consumer education

Collaborations on public awareness campaigns and sensitization

Responsible reporting of information regarding insurance industry

Suppliers and

contractors

Deliver services and products

Timely request for services

Fair selection process

Timely payment for goods and services rendered

Timely delivery of services and products as per specifications

Compliance with set procurement guidelines

General Public Consume insurance products

Consumer education

Uptake of insurance products

Staff Service delivery Fair pay

Conducive working environment

Adherence to work ethics

Efficiency in service delivery


CHAPTER THREE: STRATEGIC FOCUS

3.0 Introduction

In order to realize its objectives, the Fund must be in a position to strategically focus its segment on

functions and operations through a Motto, Vision, Mission and Core Values which are the guiding

principles. The Motto is an expression of the guiding principle of an organization. The strategic Vision

is a pre-requisite for effective strategic leadership. The Mission is the overriding factor that gives our

identity and unique purpose. The Core Values enable good decision making through common guiding

spirit.

3.1 Vision

“To be a highly respected policyholders compensation fund”.

3.2 Mission

“To enhance confidence in the insurance industry through timely compensation of policyholders of a

company placed under a statutory manager or whose license has been cancelled”.

3.3 Core Values

a) Integrity

b) Teamwork

c) Innovation

3.4 Motto

The Fund you can trust

3.5 Key Results Areas

The following key results areas will be achieved for effective implementation of the Strategic Plan

1. KRA 1: Compensation of policyholders

2. KRA2: Resolution of insurer under distress

3. KRA3: Financial sustainability of the compensation fund

4. KRA4: Institutional capacity

To achieve the Key Result Areas, the following objectives will be pursued;

1. To protect policyholder’s interest

2. To promote confidence and stability in the Insurance industry

3. To manage an insurer under statutory management

4. To manage liquidation of wound-up insurer

5. To mobilize resources to meet demands for

6. To ensure prudent and sustainable utilization of funds

7. Enhance Fund’s governance

8. Attract, develop and retain competent staff

9. To strengthen internal systems and processes


Table 3.1: Strategy Matrix

Key Result Areas Strategic Objectives Strategies

KRA1: Compensation of policyholders

To protect policyholder’s interest Develop compensation policy

Timely compensation of policyholders

To promote confidence and stability in the insurance industry

Advise on law and compensation framework

Engage in consumer education

KRA2: Resolution of insurers under distress

To manage an insurer under statutory management

Develop a statutory management procedures manual

To manage liquidation of wound-up insurer

Develop liquidation policy and procedures manual

Liquidate wound-up insurer when appointed

KRA3: Financial sustainability of the compensation fund

To mobilize resources to meet demands for compensation of claimants

Proactive collection of all categories of revenue

Investments of PCF assets

To ensure prudent and sustainable utilization of funds

Comply with laws and regulations governing effective management of public resources

KRA4: Institutional capacity

Enhance Fund’s governance Enhance business practices and ethics

Strengthen enterprise risk management

Enhance governance and legal compliance

Enhance communication and trust in the Fund

Attract, develop and retain competent staff

Establish optimal staffing levels

Enhance staff training and development

Enhance performance management, recognition and reward system

Improve staff welfare

To strengthen internal systems and processes

Enhance Quality Management Systems (QMS)

Leverage on ICT

Establish a conducive working environment

Development and review of operational policies and procedures

Acquisition of own office premises

Provide adequate office space


CHAPTER FOUR: IMPLEMENTATION AND CO-

ORDINATION FRAMEWORK

4.0 Introduction

Given the mandate of PCF, there is need to enhance its Institutional Capacity to keep pace with

demands of its stakeholders. This chapter highlights resource requirements for the Fund to

implement this Strategic Plan effectively.

4.1 Staffing Levels

Currently, the Fund has a Managing Trustee as the only employee. PCF requires a team of highly

skilled and experienced human capital for it to execute its mandate effectively. The staff requirements

for the Fund are outlined in Table 4.1.

Table 4.1: PCF Staff Requirements

Job Title Establishment Impost Variance

1 Managing Trustee 1 1 0

2 Chief Manager 3 0 3

3 Manager 5 0 5

4 Assistant Manager 11 0 11

5 Senior Officer 3 0 3

6 Officer I/ II 12 0 12

7 Senior Assistant Officer 4 0 4

8 Assistant Officer 2 0 2

9 Senior Driver 1 0 1

10 Driver I/ II 1 0 1

TOTAL 43 1 42

The Fund shall fill vacant positions on need basis to ensure effective implementation of the Strategic

Plan.

4.2 Governance Structures

The Fund is managed by Board of Trustees that is responsible for policy and strategic guidance. The

Managing Trustee is responsible for the day-to-day management of the Fund. PCF will have the

following Departments, Divisions and Units:

a) Technical Services Department headed by Chief Manager (PCF 2) who will be answerable to

the Managing Trustee and responsible for compensation of policyholders, statutory

management, liquidation, insurance risk monitoring, planning, research and strategy;


b) Corporate Services Department headed by Chief Manager (PCF 2) who will be answerable to

the Managing Trustee and responsible for human resource management and development,

finance, ICT and corporate communication.

c) Internal Audit & Enterprise Risk Management Department headed by a Chief Manager at grade

PCF 2 who will be answerable to the Managing Trustee for the overall management of the

Division and functionally report to the Audit & Risk Management Committee of the Board.

d) Corporation Secretary/ Legal Services Unit headed by a Manager at grade PCF 3 who will be

answerable to the Managing Trustee for the overall management of the Unit.

e) Supply Chain Management Unit headed by an Assistant Manager at grade PCF 4 who will be

answerable to the Managing Trustee for the overall management of the Unit.

These functions are outlined in 4.1

Figure 4.1: Policyholders Compensation Fund Organization Structure


4.3 Finance Plan

As part of its public financial management reforms, the government is adopting program-Based

Budgeting in the allocation of its resources. In light of this, this Strategic Plan proposes to align

projected financial resources with programs that will be undertaken during the Plan period.

PCF will pursue nine (9) strategic objectives that will be achieved through implementation of the

activities identified in the implementation matrix (Appendix 1). The matrix indicates the resources

required for implementing these activities. PCF’s projected resource requirements for implementation

of Strategic Plan 2020-2025 is Kshs. 5,702.5 million. The summary of total resources required for

the period 2020-2025 is shown in Table 4.2.

Table 4.2: Financial Requirements

KEY RESULT AREA

STRATEGIC OBJECTIVE

Financial Resource Requirements Estimate (Kshs. millions)

2020/21 2021/22 2022/23 2023/24 2024/25 Total

Compensation to claimants

To protect policyholder’s interest

1,001.6

1,000

1,000.6

1,000

1,000

5,002.2

To promote confidence and stability in the insurance industry

2.0

1.0

1.55

1.0

1.0

6.55

Sub Total 1,003.6 1,000.0 1,002.15 1,000.0 1,000.0 5,008.75

Resolution of Insurer under distress

To manage an insurer under statutory management

1.5

-

0.25

-

-

1.75

To manage liquidation of wound-up insurer

1.5

-

-

0.25

-

1.75

Sub Total 3.0 - 0.25 0.25 - 3.50

Financial Sustainability of the compensation fund

To mobilize resources to meet demands for compensation of claimants

-

-

-

-

-


0.2

-

-

0.2

-

0.4

Sub Total 0.2 - - 0.2 - 0.4

Institutional capacity

Enhance Fund’s governance

11

9.4 9.3 9.3 9.3 48.3

Attract, develop and retain competent staff

4.5

4.0

0.5

2.75

3.5

15.25

To strengthen internal systems and processes

35.0

62.7

36.6

31.6

25.4

191.3

Sub Total 50.5 76.1 46.4 44.65 38.2 254.85

Total 57.3 77.1 48.8 46.1 39.2 267.1

FIXED COSTS


KEY RESULT AREA

STRATEGIC OBJECTIVE

Financial Resource Requirements Estimate (Kshs. millions)

2020/21 2021/22 2022/23 2023/24 2024/25 Total

Board of Trustees Costs

20.0

24.0 26.0 27.0 28.0 125.0

Staff Costs 43.7 48.2 50.6 53.1 55.8 251.4

Rent of Premises - 14.2 12.4 12.4 12.4 51.4

Audit Fees 0.5 0.6 0.7 0.8 0.9 3.5

Security 0.54 0.54 0.54 0.54 0.54 2.7

Sub-Total (Fixed Costs)

64.74 87.54 90.24 93.84 97.64 434

Grand Total 1,122.04 1,164.64 1,139.04 1,139.94 1,136.84 5,702.5

PCF relies solely on the levy collection and investment income to finance its activities.

PCF projects to raise funds from different sources as shown in Table 4.3.

Table 4.3: Cumulative Projected Levels of Funding by Sources

Sources of Funds KShs Million

2020/21 2021/22 2022/23 2023/24 2024/25 Total

Levy collection 918.00 964.00 1,061.00 1,220.00 1,464.00 5,627.00

Investment income 880.00 968.00 1,065.00 1,171.00 1,288.00 5,372.00

Total Income 1,798.00 1,932.00 2,126.00 2,391.00 2,752.00 10,999.00

Strategic Plan Requirements

1,122.04 1,164.64 1,139.04 1,139.94 1,136.84 5,702.5

Surplus 675.96 767.36 986.96 1,251.06 1,615.16 5,296.50

4.3.1 Resource Mobilization and Utilization

PCF commits itself to uphold the highest standards for efficient and effective use of resources in every

activity that will be undertaken. Successful implementation of the 2020-2025 Strategic Plan will not

only depend on the commitment of the stakeholders, but also on the availability and efficient

utilization of resources required to undertake the various activities. Resource mobilization for assured

financial sustainability is a fundamental concern during this Strategic Plan period.

4.3.2 Strategies for Resource Mobilization

The overall goal of resource mobilization is to strengthen PCF’s funding through diversification of

revenue streams. In this regard, PCF will continue to lobby and mobilize financial resources for its

activities as follows:

i. Collect and consolidate all funds from all the identified sources;

ii. Explore alternative sources of funds; and

iii. Foster partnerships with development partners;

4.4 Strategic Implementation

The key to successful implementation of a Strategic Plan is the efficient mobilization of resources and

their timely deployment, accountability, effective monitoring, evaluation and reporting of the entire

process. Implementation responsibilities will therefore be cascaded to all levels in order to allow for


maximum participation of all the relevant stakeholders. The cascading will be done by developing and

implementing annual corporate and departmental business plans. Departments and sections will be

charged with responsibility of planning and implementing projects. An implementation matrix

(Appendix 1) has been prepared to facilitate this. The following are activities that will be undertaken

before, during and post implementation of the strategic plan.

4.4.1 Pre-Implementation

For successful implementation of the Strategic Plan, PCF through the leadership of the Board of

Trustees and Managing Trustee will undertake the following activities:

a) Communicate the strategy to all members of the Fund and the relevant stakeholders to ensure clarity of vision;

b) Assign roles and responsibilities to different players necessary for successful implementation; c) Mobilize resources and allocate them in a timely manner and in accordance with priority activities

as stipulated in the Strategic Plan; d) Ensure activities are tied to budget provisions; e) Develop and communicate annual corporate plans to relevant departments, sections and

individuals in line with the Strategic Plan; f) Build staff capacity to implement the strategies; g) Develop the monitoring, evaluation and reporting mechanisms to be used throughout the

implementation period; h) Discuss and agree with Board of Trustees and staff on performance targets; i) Ensure staff acceptance and adoption of the plan; and j) Review the strategic plan in response to changing needs through the annual corporate plans.

4.4.2 During Implementation

PCF will provide an enabling environment for the realization of all strategic objectives.

Implementation responsibilities of this Strategic Plan will be cascaded to all levels of PCF and

supervised by the Managing Trustee.

The following are roles of each of the players in implementation of the Strategic Plan.

4.4.2.1 Role of the Board of Trustees

a) To approve PCF corporate strategic plan, annual corporate plans and annual budgets; b) To provide strategic leadership, and be responsible for policy formulation; c) To play an oversight role in the implementation, monitoring, evaluation and reporting of the

Strategic Plan; d) Rationalize and strengthen human capital in order to enhance capacity to implement the Strategic

Plan; e) To submit to the Cabinet Secretary a quarterly report on the activities of PCF; f) Mobilize and provide adequate financial resources to implement the strategic plan; g) Approve performance-based management and reward systems; and h) To negotiate a Performance Contract with the Cabinet Secretary.

4.4.2.2 Role of the Managing Trustee

The Managing Trustee is the principal accounting officer and will be in charge of then following: a) Spearheading the overall coordination, implementation, monitoring, evaluation and reporting of

the Strategic Plan, including acting on decisions made by Board of Trustees; b) Ensure that staff are sensitized on the Strategic Plan and clearly understand their contribution to

its achievements;


c) Oversee development of the Fund’s Annual Corporate Plans; d) Co-ordinate meetings to review progress and resolve issues that may arise in implementation; e) Submit to the Board of Trustees an annual report on the PCF activities, operations and

expenditure; f) Ensure that the performance Management system is adopted in respective departments; and g) Empower all departments, divisions and units and provide them with necessary resources to

implement the strategic plan.

4.4.2.3 Role of Heads of Departments

a) The heads of department will be responsible for the day-to-day implementation, monitoring, and evaluation of the plan;

b) Ensure that members of staff under their departments, divisions and units develop and implement Business Plans in line with the Strategic Plan;

c) Ensure that performance Management system is adopted in their respective departments d) Design M & E tools, coordinate and supervise data collection, analyze data and provide relevant

reports to the Managing Trustee on the implementation status of the Plan; e) Ensure that they involve their respective departments to provide feedback on the

implementation of the Strategic Plan; f) Ensure that performance is measured against negotiated target levels; and g) Ensure that staff are empowered and provided with necessary resources to implement the

strategic plan.

4.5 Linkages and Collaborations

PCF will enhance linkages and collaborations with appropriate stakeholders and other stakeholders in

the implementation process of the Strategic Plan.

4.6 Enterprise Risk Management

The implementation of the Strategic Plan faces potential risks that have to be mitigated if PCF’s

strategic objectives are to be achieved. This requires that, possible risks be analyzed to take

precautionary measures in good time and prevent failure of the Plan’s implementation. The enterprise

risks and mitigating strategies are explained in the Table 4.4.


Table 4.4: Enterprise Risk Analysis

Potential Risk Risk drivers Risk rating Risk Mitigation Strategies Strategic objective affected

Litigations Failure to comply with legal provisions

Inadequate policy, legal and regulatory framework

Failure to adhere to regulations, honor contracts and MOUs L

Undertake legal and governance audit

Continuous engagement of stakeholders

Continuous consultation with the

AG’s Office

Sensitization of policyholders

Address public complaints

Implement contracts and MoUs as

negotiated


To promote confidence and stability in the Insurance industry

Fraud Unethical business practices

L

Enhance investigative function of the Fund

Sensitization and public awareness

To ensure prudent and

sustainable utilization of funds

Loss of assets Failure to secure assets

Non adherence to internal control measures L

Implement internal controls

Develop asset register

Tag Fund assets

Strengthen risk transfer agreements

To strengthen internal systems

and processes

Reputation Unethical business practices

Failure to honor agreements

Delay in compensation payment to claimants

H

Strengthen strategic communication of the Fund

Implement agreements as negotiated

Timely compensation to claimants

Continuous engagement of stakeholders


To promote confidence and stability in the Insurance



Improve access to PCF services and information

Increased publicity on service delivery

Delay in service

delivery Inadequate staff

Skills job mismatch

Dysfunctional organization structure

Inadequate budgetary allocation

L

Staff development strategy

Change management and leadership

Continuous internal communication

Career progression

Have administrative provision for budget



Workplace

accidents Negligence of duty by

employees

Insufficient training on use of tools and equipment

Failure to provide personal protective equipment

Poor working conditions

L

Implement provisions of OSHA

Continuous training and sensitization of staff

Provision of correct tools and equipment

Insurance


and processes

Loss of data Inadequate information and data management systems

Lack of business continuity and disaster recovery plans

Lack of succession and knowledge management systems

M

Contingency plans

Implement a risk management framework




Cyber insecurity Lack of adequate cyber security systems

Lack of business continuity and disaster recovery plans

Lack of succession and knowledge management systems

M

Implement ICT security systems

Implementation of Information Security Management System

Training on emerging security issues

To ensure prudent and

sustainable utilization of funds

Labor turnover Inadequate compensation scheme

Poor working environment

L

Implement succession plan

Coaching and mentorship

Improve terms of engagement

Attract, develop and retain

competent staff

Service disruption System breakdown

Power outages

Emerging threats

L

Upgrade systems and equipment

Scheduled maintenance

Install power back-ups


and processes


CHAPTER FIVE: MONITORING, EVALUATION,

REPORTING AND LEARNING

5 Introduction

Monitoring, evaluation, reporting and learning (MERL) is an integral part of Strategic Planning. PCF

will put in place a monitoring evaluation and reporting system to ensure that planned activities are

implemented, and setbacks and variations are addressed as they arise.

The MERL system assists in:

a) Evaluation of strategies, activities and identifying areas that need adjustment;

b) Providing a framework for reporting on progress;

c) Identification of key lessons; and

d) Improving the programming of new interventions and strategies.

5.1 Monitoring, Evaluation, Reporting and Learning Framework

The MERL framework for this Plan will be based on the identified Key Result Areas, Strategic

Objectives and specific outputs that PCF envisages to pursue during the plan period. MER&L will be

undertaken at all levels of implementing the strategic plan.

5.1.1 Monitoring, Evaluation, Reporting and Learning Strategies

The process of monitoring the implementation of the Strategic Plan constitutes systematic tracking of

activities and actions to assess progress. PCF will monitor implementation of the strategic plan

through routine data collection and analysis and regular reporting for follow-up and record keeping.

To facilitate this, each department shall:

a) Develop an annual work plan with appropriate targets, activities, performance indicators and

budgets as derived from this plan;

b) Measure progress for each action/activity against specific targets and schedules included in the

plan;

c) Collect data using recommended data capture formats or standardized data collection tools; and

d) Analyze data and disseminate information on quarterly, half-yearly and yearly basis to

Management as well as to the Board.

Reports generated shall then be used to inform decision-making, help to identify difficulties and

problem areas and to take immediate corrective action where deviations have been identified.

5.1.2 Monitoring and Evaluation Team

For the Strategic Plan to be effectively implemented, MERL shall be coordinated by the monitoring

evaluation and reporting committee appointed by the Managing Trustee. The committee shall ensure

that strategies are being implemented, performance is being measured, progress reports are made and

discussed, and corrective action is taken where necessary. The departments shall be accountable for

the completion of stated tasks in the Strategic Plan. However, responsibility for data collection,


aggregation, analysis and reporting on the Plan will rest with the heads of department. Where

necessary, capacity of various departments to undertake ME&R activities will be built.

Appropriate linkages shall be established to ensure relevant internal and external follow-ups and

controls. The overall responsibility of overseeing and managing the monitoring and evaluation of the

Strategic Plan shall lie with the Board of Trustees.

5.1.3 Cascading the Plan to all Staff

The Strategic Plan must translate to individual work plans for effective implementation. The Plan

shall, therefore, be cascaded downwards to the lowest levels using PCF corporate work plan. This will

help each member of staff to understand and plan for their respective roles.

5.1.4 Departmental and Individual Annual Work Plans

Departments and individuals shall develop detailed work plans with clear performance indicators

taking into account the planned activities in the Strategic Plan. Individual work plans shall be derived

from departmental work plans. The Managing Trustee shall coordinate departments in case of joint

activities.

5.1.5 Data and Information Collection Procedures

Elaborate data and information collection templates and procedures shall be developed and used by

the departments to measure performance as per the indicators and report to Managing Trustee.

Reports shall describe actions taken by the departments towards achieving the specific strategies of

the Plan and will include achievements, challenges and emerging issues, costs, benefits and

recommendations.

5.1.6 Scheduled Meetings and Workshops

i. Monthly Review Meetings at the departmental levels will be scheduled to ensure

implementation is on track.

ii. Quarterly Review Meetings at the Board of Trustees and Management levels shall be

scheduled to get and give feedback on the pertinent performance indicators.

iii. The overall oversight of the Strategic Plan and its implementation is a critical role of the Board

of Trustees. Therefore, progress reporting will be an agenda item in all quarterly meetings of

the Board of Trustees.

iv. A Strategy Review Workshop will be held annually to evaluate the impact of operational

plans at both operational and strategic levels.

5.1.7 Linking MERL to Performance Management

For the implementation of the Plan to be effective, the MERL will be an integral part of PCF’s

performance Management system and will be linked to staff appraisal and reward systems. PCF shall

monitor and evaluate its activities and performance in the process of reporting on its performance

contract on quarterly, semi-annually and annual basis. The tracking of the Strategic Plan will be

regularized to become part of this process.


5.2 Progress Reports

Reporting the progress of implementation will be critical in adjusting strategic directions and

measuring performance. In undertaking MERL, data shall be collected on the various performance

indicators which have been developed and included in this Strategic Plan. The Corporate Planning

unit will be required to submit the following reports to the Management as well as to the Board of

Trustees on their progress in implementation of strategies contained in the Strategic Plan:

a) Monthly report – Management

b) Quarterly report – Management, the Board of Trustees

c) Annual report – Management, the Board of Trustees, the Cabinet Secretary and Stakeholders

Each of the reports shall contain the following elements:

a) Achievements against the planned targets;

b) Performance against the budget for each respective strategy;

c) Causes of any delays in the implementation of actions under respective strategies;

d) Actions or resources required to remedy delays stated, if any; and

e) Proposed revisions to the strategies.

5.3 Performance Review

This section provides details on annual performance review, mid-term evaluation and review and end

term review of the Strategic Plan.

5.3.1 Annual performance Review

At the end of each financial year, a report will be prepared giving details on the planned

implementation and circulated to or shared with the stakeholders.

5.3.2 Mid Term Evaluation and Review

The purpose of the Mid-Term Evaluation and Review (MTER) shall be to assess the extent to which

the objectives of the Fund were met. The MTER shall be carried out in December 2022. This will

provide an opportunity to give recommendations for the remaining phase of the Plan. The MTER

will be done by the Management in liaison with external consultants to ensure objectivity.

5.3.3 End Term Review

The final evaluation for the Strategic Plan 2020-2025 shall be carried out at least six months before

the end of the strategic period. The review shall determine:

a) Effectiveness (Impact): The extent to which the implementation of activities met the stated

strategies and objectives;

b) Sustainability: Assesses the sustainability of the achievements made;

c) Challenges: Document the challenges faced;

d) Lessons Learnt: Document lessons learnt;

e) Mitigation measures: Document measures to overcome challenges faced; and

f) Terms of Reference (ToRs): Prepare the ToRs for the next Plan.


5.3.4 Post Implementation

PCF shall carry out comprehensive reviews of the strategy implementation process and objectively

draw out the lessons learnt to inform the next cycle of planning. The results of the review will be

shared with all internal stakeholders. The overall responsibility of overseeing and managing the Plan

implementation and coordination lies with the Managing Trustee.

5.4 The Implementation Matrix

The Implementation Matrix is a critical management tool for mobilization, allocation and utilization

of resources for plan implementation; management and coordination of the Strategic Plan’s

implementation; and monitoring of progress as well as evaluating results/outputs and impact.

The implementation matrix is presented below and consists of:

i. Key Result Areas

ii. Strategic Objectives

iii. Strategies

iv. Key activities

v. Performance Indicators

vi. Targets

vii. Responsibility and

viii. Budget (KShs Million.)

It is important to note that detailed Corporate Annual Work Plans as well as Operational Plans for

each department are to be developed for each year of the strategic plan.


Appendices

Appendix 1: PCF Strategic Plan Implementation Matrix

KRA 1: Compensation of Policyholders

Strategies Key Activities Expected output

Unit of measure

Five year target

Performance Targets

Budgetary Requirements (Million KShs.)

Responsible office

20/21

21/ 22

22/ 23

23/ 24

24/ 25

20/ 21

21/ 22

22/ 23

23/ 24

24/ 25

Strategic Objective 1: To Protect Policyholders Interest

Develop compensation policy

Develop compensation policy

Approved policy

No. 2 1 - - 1 - 1.5 - - 0.5 - MT

Sensitize the stakeholders on the policy

Stakeholder sensitization report

No. 2 1 - - 1 - 0.1 - - 0.1 - MT

Implement the policy Policy implementation report

No. 5 1 1 1 1 1 - - - - - MT

Timely Compensation of Policyholders

Payment processing Compensation Report

No. 5 1 1 1 1 1 1,000 1,000 1,000 1,000 1,000 MT

Strategic Objective 2: To Promote Confidence and Stability in the Insurance Industry

Advise on law and regulatory framework

Undertake research on policyholder compensation

Research report,

No. 5 1 1 1 1 1 0.3 0.3 0.3 0.3 0.3 CMTS

Disseminate the output of the research on policyholder compensation

Position paper, policy brief

No. 5 1 1 1 1 1 - - - - - CMTS

Engage in consumer education

Develop consumer education manual

Approved training manual

No. 2 1 - 1 - - 0.5 - 0.25

- - CMCS

Roll-out the manual Training reports

No. 5 1 1 1 1 1 0.7 0.7 0.7 0.7 0.7 CMCS

Develop guidelines for risk profile

Approved guideline

No. 2 1 - 1 - - 0.5 - 0.3 - - CMTS



Unit of measure

Five year target

Performance Targets

Budgetary Requirements (Million KShs.)

Responsible office

20/21

21/ 22

22/ 23

23/ 24

24/ 25

20/ 21

21/ 22

22/ 23

23/ 24

24/ 25

Undertake risk profile of insurer

Risk profile report

No. 5 1 1 1 1 1 - - - - - CMTS

Issue risk profile report (certificate of compliance)

Certificate issued

No. 5 1 1 1 1 1 - - - - - CMTS

Provide advisory to regulator on insurer compliance level

Advisory reports

No. 5 1 1 1 1 1 - - - - - MT

KRA 2: Resolution of Insurers Under Distress


Unit of measure

Five year target

Performance Targets

Budgetary Requirements (Million KSh)

Responsible office 20/

21 21/ 22

22/ 23

23/ 24

24/ 25

20/ 21

21/ 22

22/ 23

23/ 24

24/ 25

Strategic Objective 1: To Manage an Insurer Under Statutory Management

Develop a statutory management policy and procedures manual

Develop policy and procedures approval

Approved policy

No. 2 1 - - 1 - 1.5 - - 0.25 - CMTS


Sensitization reports

No. 2 1 - - 1 - - - - - - CMTS

Implement the policy Implementation reports

No. 5 1 1 1 1 1 - - - - - CMTS

Strategic Objective 2: To Manage Liquidation of Wound-up Insurer

Develop liquidation policy and procedures manual

Develop policy and procedures approval

Approved policy

No. 2 1 - 1 - - 1.5 - - 0.25 - CMTS


Sensitization reports

No. 2 1 - 1 - - - - - - - CMTS

Implement the policy and procedure

Implementation reports

No. 5 1 1 1 1 1 - - - - - CMTS

Identify creditors Creditors registers

No. 5 1 1 1 1 1 - - - - - CMTS



Unit of measure

Five year target

Performance Targets


Responsible office 20/

21 21/ 22

22/ 23

23/ 24

24/ 25

20/ 21

21/ 22

22/ 23

23/ 24

24/ 25

Liquidate wound-up insurer

Dispose assets Proceeds reports

No. 5 1 1 1 1 1 - - - - - CMTS

Disburse proceeds Payment advisory reports

No. 5 1 1 1 1 1 - - - - - CMTS

KRA 3: Fund Sustainability


Unit of measure

Five year target

Performance Targets


Responsible office

20/ 21

21/ 22

22/ 23

23/ 24

24/ 25 20/ 21

21/ 22

22/ 23

23/ 24

24/ 25

Strategic Objective 1: To Mobilize Resources to Meet Demands for Compensation of Claimants

Consolidate revenue received by PCF

Collect contributions paid by policyholders and insurer

Amount collected

Kshs. (Million)

5030 918 960 1000 1050 1100 - - - - - CMCS

Charge penalty payable under Insurance Act

Financial Reports

No. 5 1 1 1 1 1 - - - - - CMCS

Negotiate optimal interest for investment of assets

Financial Reports

No. 5 1 1 1 1 1 - - - - - CMCS

Apply for funds appropriation

Financial proposals

No. 2 - - - 1 1 - - - - - CMCS

Apply for grants for the Funds

Financial proposals

No. 3 - - 1 1 1 - - - - - CMCS

Seek for reimbursements for services rendered

Financial Reports

No. 5 1 1 1 1 1 - - - - - CMCS

Charge fees for statutory management services

Financial Reports

No. 5 1 1 1 1 1 - - - - - CMCS

Investments of PCF assets

Undertake feasibility study to determine investment with optimum returns

Investment reports

No. 5 1 1 1 1 1 - - - - - CMCS



Unit of measure

Five year target

Performance Targets


Responsible office

20/ 21

21/ 22

22/ 23

23/ 24

24/ 25 20/ 21

21/ 22

22/ 23

23/ 24

24/ 25

Conduct due diligence on investment instruments

Investment reports

No. 5 1 1 1 1 1 - - - - - CMCS

Invest in approved instruments

Investment reports

No. 5 1 1 1 1 1 - - - - - CMCS

Enlist support from development partners for PCF programs

Map out PCF programs that require partnership

Partnership registers

No. 3 - - 1 1 1 - - - - - CMCS

Develop partnership engagement framework

Partnership framework

No. 2 1 - 1 - - 0.1 - 0.05 - - CMCS

Identify appropriate partners

Partnership database

No. 5 1 1 1 1 1 - - - - - CMCS

Engage selected partners Engagement report (MoU)

No. 3 - - 1 1 1 - - 0.2 0.2 0.2 CMCS

Strategic Objective 2: To Ensure Prudent and Sustainable Utilization of Funds

Comply with laws and regulations governing effective management of public resources

Develop and review policy and procedures manual for effective management of public resources

Approved finance policy and procedure manual

No. 2 - 1 - 1 - 0.1 - - 0.1 - CMCS

Approved supply chain management policy and procedures manual

No. 2 1 - - 1 - 0.1 - - 0.1 2 CMCS

Implement policy and procedures manual for effective management of public resources

Approved budget estimates

No. 5 1 1 1 1 1 - - - - - CMCS

Financial reports

No. 5 1 1 1 1 1 - - - - - CMCS



Unit of measure

Five year target

Performance Targets


Responsible office

20/ 21

21/ 22

22/ 23

23/ 24

24/ 25 20/ 21

21/ 22

22/ 23

23/ 24

24/ 25

Procurement and disposal plan

No. 5 1 1 1 1 1 - - - - - CMCS

Procurement reports

No. 5 1 1 1 1 1 - - - - - CMCS

KRA 4: Institutional Capacity


Unit of measure

Five year target

Performance Targets


Responsible office

20/ 21

21/ 22

22/ 23

23/ 24

24/ 25

20/ 21

21/ 22

22/ 23

23/ 24

24/ 25

Strategic Objective 1: To Enhance the Fund’s Governance

Enhance capacity of the Board of Trustees

Recommend appointment of Board of Trustees

Recommendation letter to the Appointing authority

No. of letters

7 3 2 - - 2 - - - - - Chairman

Develop the Board charter

Approved Board charter

No. 2 1 - - 1 - 1.0 - - 1.0 - MT

Develop and implement Board Almanac (work-plan)

Almanac No. of Almanac

5 1 1 1 1 1 - - - - - Chairman

Develop capacity of Board of Trustees

Board of Trustees induction

Induction reports

2 1 - - 1 - 0.5 - - 0.5 - MT

Training Needs Assessment

Training Needs Report

2 1 - - 1 - - - - - - MT

Training reports

No. of reports

5 1 1 1 1 1 8.8 8.8 8.8 8.8 8.8 MT

Undertake Board evaluation exercise

Evaluation reports

No. of reports

5 1 1 1 1 1 0.5 0.5 0.5 0.5 0.5 MT



Unit of measure

Five year target

Performance Targets


Responsible office

20/ 21

21/ 22

22/ 23

23/ 24

24/ 25

20/ 21

21/ 22

22/ 23

23/ 24

24/ 25

Enhance business practices and ethics

Develop policies and procedures to strengthen business practices and ethics

Approved policy

No. 3 2 1 - - - 0.2 0.1 - - - CS

Implement policies and procedures that strengthen business practices and ethics


No. 3 2 1 - - - - - - - -

Compliance level

% 100% 100 100 100 100 100 - - - - -

Strengthen enterprise risk management

Review enterprise risk management framework

Review report

No. 2 1 - - 1 - 2.0 - - 1.0 - Internal Audit

Implement and monitor enterprise risk management framework


No. 5 1 1 1 1 1 - - - - -- Internal Audit

Enhance governance and legal compliance

Undertake legal audit Legal audit reports

No. 2 - 1 - - 1 - 2.0 - - 2.0 CS

Undertake governance audit

Governance audit reports levels

No. 5 1 1 1 1 1 2.0 2.0 2.0 2.0 2.0 CS

Enhance communication and trust in the Fund

Develop and review communication policy

Approved communication policy

No. 2 1 - - 1 - 0.25 - - 0.1 - CMCS

Implementation of the communication policy


No. 5 1 1 1 1 1 - - - - - CMCS

Re-branding the Fund Brand manual

No. 1 - - 1 - - - - 3.0 - - CMCS

Undertake Corporate Social Investments (CSI)

Participation report

No. 4 - 1 1 1 1 - 1.0 1.0 1.0 1.0 CMCS

Strategic Objective 2: Attract, Develop and Retain Competent Staff



Unit of measure

Five year target

Performance Targets


Responsible office

20/ 21

21/ 22

22/ 23

23/ 24

24/ 25

20/ 21

21/ 22

22/ 23

23/ 24

24/ 25

Establish optimal staffing levels

Review staffing needs Staffing needs report

No. 2 1 - - 1 -

3.0 - - 2.0 - CMCS

Develop organization structure

Approved organizational structure

No. 2 1 - - 1 -

Develop staff establishment

Approved staff establishment

No. 2 1 - - 1 -

Develop HR policy and procedures manual

Approved HR policy and procedures manual

No. 2 1 - - 1 -

Implement HR policy and procedures manual

HR policy and procedures implementation reports

No. of report

5 1 1 1 1 1 - - - - - CMCS

Enhance staff training and development

Undertake skills gap analysis

Skills gap report

No. 1 - 1 - - - - 0.5 - - - CMCS

Undertake Training Needs Assessment (TNA)

TNA reports

No. 1 - - 1 - - - - 0.5 - - CMTS

Implement TNA recommendations


No. 5 1 1 1 1 1 - - - - - CMCS

Enhance performance management,

Develop performance management framework

Approved performance management and

No. 2 1 - - 1 - 1.0 - - 0.5 - CMCS



Unit of measure

Five year target

Performance Targets


Responsible office

20/ 21

21/ 22

22/ 23

23/ 24

24/ 25

20/ 21

21/ 22

22/ 23

23/ 24

24/ 25

recognition and reward system

recognition manual

Implement the performance management

Performance appraisal reports

No. 5 1 1 1 1 1 - - - - - CMCS

Develop recognition and reward system

Approved recognition and rewards manual

No. 2 1 - - 1 - 0.5 - - 0.25 - CMCS

Implement recognition and reward system


No. 5 1 1 1 1 1 - - - - - CMCS

Improve staff welfare

Develop a staff welfare policy

Approved staff welfare policy

No. 2 - 1 - - 1 - - - - - CMCS

Implement a staff welfare policy


No. 4 - 1 1 1 1 - - - - - CMCS

Implement provisions of Occupational Safety and Health Act (OSHA)

Compliance levels

% 100 100 100 100 100 100 - - - - - CMCS

Undertake employee and customer satisfaction survey

Survey reports

No. of reports

2 - 1 - - 1 - 3.5 - - 3.5 CMTS

Implement recommendations from customer and staff engagement survey


No. of reports

2 - 1 - - 1 - - - - - CMTS

Strategic Objective 3: To Strengthen Internal Systems and Processes

Enhance Quality Management Systems (QMS)

QMS implementation process

ISO Certificate

Certificate 1 - - 1 - - - - 5.0 - - CMTS

QMS audit reports

No. of reports

3 - - 1 1 1 - - - - - CMTS

Review the service charter

Approved reviewed service charter

No. of reviewed charter

1 1 - - - - - - - - - CMCS



Unit of measure

Five year target

Performance Targets


Responsible office

20/ 21

21/ 22

22/ 23

23/ 24

24/ 25

20/ 21

21/ 22

22/ 23

23/ 24

24/ 25

Leverage on ICT

Develop ICT policy and procedure manual

Approved policy

No. of policy and procedure

2 1 - 1 - - - - - - - CMCS

Automate internal systems and processes

Enterprise resource planning and computer operating systems

No. of systems

2 1 1 - - - 2.0 15.0 - - CMCS

License No. 10 2 2 2 2 2 - - - - - CMCS

Implement information security management systems (ISMS)

ISMS implementation report

No. of report

5 1 1 1 1 1 - - - - - CMCS

Develop business continuity and disaster recovery management manual

Approved manual

No. of manuals

1 - 1 - - - - 0.5 - - - CMCS

Implement business continuity and disaster recovery management manual


No. of reports

5 1 1 1 1 1 - - - - - CMCS

Establish a conducive working environment

Acquire an office space Lease No. 1 - 1 - - - - 14.2 12.4 12.4 12.4 CMCS

Design and partitioning

KShs. 20.0 - 1 - - - 3.0 17.0 - - - CMCS

Procure office equipment and furniture

Office equipment*

Level of furnishing

100% 100 100 100 100 - 5.5 CMCS

Office furniture*

100% 100 100 100 100 6.0

Procure vehicle for Fund logistics

Vehicles No. 3 1 - 1 - 1 14.5 - 11.2 - 7.0 CMCS


Appendix 2: Monitoring and Evaluation Framework

Key Result

Area

Outcome Key Performance

Indicator

Baseline Target Achievements Variance Comments

KRA1:

Compensation

to claimants

Satisfied claimants Timely compensation of

claimants

Confidence and

stability

Increased confidence in the

insurance industry

Increase uptake of

insurance products

Increase in new insurers

KRA2:

Resolution of

insurers under

distress

Reduction of insurers

under distress

Reduction in number of

insurers under statutory

management

Reduction in number of

insurers on liquidation

KRA3:

Financial

sustainability

of

compensation

fund

Prudence in financial

management

Unqualified financial audits

Awards won

Increased investments Amounts invested

Interests earned

KRA4:

Institutional

capacity

Enhanced corporate

governance

Committed and

motivated workforce


Key Result

Area

Outcome Key Performance

Indicator

Baseline Target Achievements Variance Comments

Enhanced service

delivery


Appendix 3: Strategic Plan Development Team

S. No. Name Designation

1.

2.

3.

4.


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