policyholders compensation fund strategic plan …
TRANSCRIPT
PCF 2020-2025 Strategic Plan 2
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
PCF 2020-2025 Strategic Plan 3
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
PCF 2020-2025 Strategic Plan 4
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.
PCF 2020-2025 Strategic Plan 5
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
PCF 2020-2025 Strategic Plan 6
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.
PCF 2020-2025 Strategic Plan 7
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
PCF 2020-2025 Strategic Plan 8
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
PCF 2020-2025 Strategic Plan 9
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
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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
PCF 2020-2025 Strategic Plan 11
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
PCF 2020-2025 Strategic Plan 12
List of Figures Figure 4.1: Policyholders Compensation Fund Organization Structure .................................................................. 30
PCF 2020-2025 Strategic Plan 13
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;
PCF 2020-2025 Strategic Plan 14
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;
PCF 2020-2025 Strategic Plan 15
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;
PCF 2020-2025 Strategic Plan 16
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)
PCF 2020-2025 Strategic Plan 17
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.
PCF 2020-2025 Strategic Plan 18
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.
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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
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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
PCF 2020-2025 Strategic Plan 21
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.
PCF 2020-2025 Strategic Plan 22
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
FACTOR STRATEGIC IMPLICATION STRATEGIC RESPONSE
a) Value systems More compensation claims Influence culture change Fraud risk management
PCF 2020-2025 Strategic Plan 23
FACTOR STRATEGIC IMPLICATION STRATEGIC RESPONSE
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
FACTOR STRATEGIC IMPLICATION STRATEGIC RESPONSE
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
FACTOR STRATEGIC IMPLICATION STRATEGIC RESPONSE
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.
PCF 2020-2025 Strategic Plan 24
FACTOR STRATEGIC IMPLICATION STRATEGIC RESPONSE
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
FACTOR STRATEGIC IMPLICATION STRATEGIC RESPONSE
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
PCF 2020-2025 Strategic Plan 25
Stakeholder Stakeholder Core
Function
Stakeholder Expectations PCF Expectations
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
Membership in the Board of Trustees
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
Membership in the Board of Trustees
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
PCF 2020-2025 Strategic Plan 26
Stakeholder Stakeholder Core
Function
Stakeholder Expectations PCF Expectations
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
PCF 2020-2025 Strategic Plan 27
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
PCF 2020-2025 Strategic Plan 28
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
PCF 2020-2025 Strategic Plan 29
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;
PCF 2020-2025 Strategic Plan 30
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
PCF 2020-2025 Strategic Plan 31
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
-
-
-
-
-
To ensure prudent and sustainable utilization of funds
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
PCF 2020-2025 Strategic Plan 32
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
PCF 2020-2025 Strategic Plan 33
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;
PCF 2020-2025 Strategic Plan 34
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.
PCF 2020-2025 Strategic Plan 35
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 protect policyholder’s interest
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 protect policyholder’s interest
To promote confidence and stability in the Insurance
PCF 2020-2025 Strategic Plan 36
Potential Risk Risk drivers Risk rating Risk Mitigation Strategies Strategic objective affected
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
To ensure prudent and sustainable utilization of funds
Enhance Fund’s governance
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
To strengthen internal systems
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
Enhance Fund’s governance
PCF 2020-2025 Strategic Plan 37
Potential Risk Risk drivers Risk rating Risk Mitigation Strategies Strategic objective affected
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
To strengthen internal systems
and processes
PCF 2020-2025 Strategic Plan 38
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,
PCF 2020-2025 Strategic Plan 39
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.
PCF 2020-2025 Strategic Plan 40
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.
PCF 2020-2025 Strategic Plan 41
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.
PCF 2020-2025 Strategic Plan 42
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
PCF 2020-2025 Strategic Plan 43
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
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
Strategies Key Activities Expected output
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
Sensitize the stakeholders on the policy
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
Sensitize the stakeholders on the policy
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
PCF 2020-2025 Strategic Plan 44
Strategies Key Activities Expected output
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
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
Strategies Key Activities Expected output
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 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
PCF 2020-2025 Strategic Plan 45
Strategies Key Activities Expected output
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
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
PCF 2020-2025 Strategic Plan 46
Strategies Key Activities Expected output
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
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
Strategies Key Activities Expected output
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 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
PCF 2020-2025 Strategic Plan 47
Strategies Key Activities Expected output
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
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
Implementation reports
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
Implementation reports
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
Implementation reports
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
PCF 2020-2025 Strategic Plan 48
Strategies Key Activities Expected output
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
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
Implementation reports
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
PCF 2020-2025 Strategic Plan 49
Strategies Key Activities Expected output
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
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
Implementation reports
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
Implementation reports
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
Implementation reports
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
PCF 2020-2025 Strategic Plan 50
Strategies Key Activities Expected output
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
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
Implementation reports
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
PCF 2020-2025 Strategic Plan 51
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
PCF 2020-2025 Strategic Plan 52
Key Result
Area
Outcome Key Performance
Indicator
Baseline Target Achievements Variance Comments
Enhanced service
delivery
PCF 2020-2025 Strategic Plan 53
Appendix 3: Strategic Plan Development Team
S. No. Name Designation
1.
2.
3.
4.