Kenya’s Insurance Penetration Remains Low Despite Sector Growth

Kenya’s insurance industry recorded 11% premium growth in 2023, yet penetration remains stuck at 3.2%—far below the global average of 7%. The Insurance Regulatory Authority (IRA) attributes this to low awareness, affordability, and trust gaps, especially in rural areas. Microinsurance products linked to mobile money are gaining ground, with offerings from Britam, Jubilee, and APA. The IRA is pushing for mandatory health and crop insurance under BETA. Digital platforms now allow instant policy purchases via USSD, but claims processing delays hurt consumer confidence. With climate risks rising, experts say scaling parametric insurance (e.g., drought-indexed payouts) could protect vulnerable households and boost financial inclusion.