Kenya has more than 50 insurance companies and one of the most developed insurance industries in Africa. But despite this, millions of Kenyans still do not have insurance.
Insurance penetration, the amount people spend on insurance compared to the country’s economy, stands at just 2.39%, according to the Insurance Regulatory Authority (IRA) and FinAccess. That is only a small increase from 2.29% in 2024 and remains below the global average.
The low uptake is not because the industry is small. In 2023, insurers collected KES 361 billion in premiums and held assets worth more than KES 1 trillion.
Most People Only Buy Insurance When They Have To
Most insurance premiums come from products such as motor vehicle insurance, medical cover, fire insurance, and industrial insurance. Many of these are either required by law or provided by employers.
Products that could benefit ordinary families, such as life, household, agricultural, and microinsurance, are still not widely used.
According to John Mugambi, Head of Underwriting at First Assurance, many Kenyans only buy insurance when it is compulsory.
“Low incomes and a lack of trust in insurance companies, especially over claim payments, have discouraged many people from buying insurance,” he said.
Experts also say many people know very little about insurance, while many policies are designed for middle- and high-income earners, leaving millions of people in the informal sector without suitable options.
Many People Don’t Trust Insurance Companies
Affordability is not the only challenge.
Many Kenyans worry they will struggle to receive compensation when they make a claim. Delayed or rejected claims have made some people believe insurance is not worth paying for.
Jubilee Holdings Group CEO Julius Kipng’etich believes the industry needs fewer but stronger insurance companies that can offer better products and improve customer service.
“There is a need for insurance companies to merge and form larger entities capable of offering better products and driving higher insurance uptake,” he said.
What Needs to Change
Experts say the industry needs simpler insurance products, better public education, and faster claim payments to rebuild trust.
They also believe mobile technology can help insurers reach more people, especially those in the informal sector who have never bought insurance before.
Until insurance becomes more affordable, easier to understand, and more reliable, millions of Kenyans are likely to continue living without cover even though the country has one of Africa’s biggest insurance markets.
