The insurance industry in Kenya is characterized by a low penetration rate and numerous
providers, making it highly competitive. The industry comprises 58 licensed insurance and 5
reinsurance firms. Penetration rate has however lagged at 2.3% which is significantly below the
global average of 7.2%. The rate does not include the universal health cover offered by the Social
Health Insurance Fund. Its predecessor, the National Hospital Insurance Fund had grown
tremendously in the past decade. As of 2023, it had approximately 14Mn registered principal
members and 22.8Mn beneficiaries.
Insurance Regulatory Authority attributes the low penetration rate to various factors including, a
poor saving culture, low levels of disposable income and negative perception towards insurance.
The negative perception particularly has led to many Kenyans viewing insurance as a non-
essential thus allocating negligible amounts of their income to insurance and pension schemes.
Kenya’s population is estimated at 56.4Mn, with a median age of 19.8 years. By 2050, it is projected
to reach 85Mn. This demographic shift presents significant growth opportunities for insurance
providers, particularly in life insurance and savings plans.
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