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Microinsurers net Sh1bn premiums in first half of the year
Insurance Regulatory Authority (IRA) CEO and Commissioner of Insurance, Godfrey Kiptum, addresses the press at Sarova Whitesands Beach, Mombasa, on November 7, 2024.
Microinsurers collected Sh1.06 billion premiums in the half year ended June 2025, highlighting the rising appetite for affordable, low-value covers targeting underserved populations, especially those in the informal economy.
The amount is more than double the Sh521.24 million premiums that the microinsurers had collected in the first three months of this year, a new disclosure by the Insurance Regulatory Authority (IRA) showed.
This marks the first time that the regulator is offering separate disclosures on micro-insurance operations, give a glimpse into the pace at which the affordable cover business is growing.
Kenya introduced microinsurance regulations in 2020. An insurance cover qualifies as micro-insurance if, among other conditions, daily premiums do not exceed Sh40, the sum assured is not more than Sh500,000, and the contract term of the policy is up to 12 months.
The innovative products, which mostly target the informal sector, have attracted several players.
The IRA data shows there are now six licensed micro-insurers—APA Microinsurance, Birdview Microinsurance, Britam Microinsurance Kenya, CIC Microinsurance, Star Discover Microinsurance, and Turaco Microinsurance.
The uptake of microinsurance products—mainly covering health, last expense, agriculture, and small business risks—has surged, driven by increased awareness and distribution through digital platforms.
Mobile money channels, in particular, have enabled customers to purchase policies with as little as Sh20, making insurance more accessible to low-income households.
The IRA data show that general micro-insurance products accounted for Sh1.03 billion or 97.1 percent of the micro-insurance business, while life took up Sh8.9 million. Bundled micro-insurance covers—those combining both general and life—contributed Sh22.42 million.
Kenya is counting on micro-insurance to boost the insurance penetration, which currently stands at 2.43 percent.
Microinsurers are riding on partnerships with mobile network operators, saccos, and cooperatives to reach last-mile customers who traditionally remain outside the insurance net.
A previous study from the Association of Kenya Insurers showed demand has been strongest in health and funeral covers, as households seek protection from medical emergencies and the high cost of burial arrangements.
Agriculture insurance has also recorded growth, supported by government and donor-backed premium subsidies targeting smallholder farmers vulnerable to the rising frequency and intensity of climate risks such as drought and floods.
Many microinsurers have been embracing collaboration, parametric insurance, and the use of technology such as artificial intelligence to deliver the products at the minimum possible cost.
Despite the progress, insurers will have to ensure they continue investing in technology to make the process of onboarding customers and settling claims much faster, given the trust deficit in traditional insurance products.
The IRA has been emphasising the need for stronger consumer education campaigns and simplified policy wording to build confidence in the sector.
Micro-insurance could contribute significantly to improving social protection and financial inclusion in Kenya while expanding the insurance industry’s premium base.
