Kenya’s micro-insurance sector is steadily carving out a foothold in the broader insurance market, backed by rising investments and a growing share of industry activity as insurers deepen their push into low-income segments.
- •New data from the Insurance Regulatory Authority (IRA) shows that total investments under micro-insurance reached KSh 848.2 million by the end of Q4 2025.
- •The investment portfolio remains highly conservative, with Kenya government securities accounting for 68.4% and term deposits making up 31.6%, effectively covering the entire asset allocation.
- •Despite the rapid expansion, micro-insurance represents a small but fast-growing slice of Kenya’s insurance industry.
With gross premiums of KSh 2.17 billion, the segment accounts for less than 1% of the industry’s total KSh 464.7 billion premium base, highlighting both its limited current footprint and significant growth headroom.
However, the pace of expansion, premiums surged more than eightfold year-on-year, signals increasing uptake among underserved populations.
The Inclusion Push
The rise in market share is being fuelled by targeted products aimed at smallholder farmers, informal sector workers, micro and small enterprises.
These offerings, often distributed via mobile platforms and partnerships, are designed to overcome traditional barriers such as cost, complexity, and accessibility.
Britam controls 75.1% of the micro-insurance market, underpinned by premium volumes of Sh1.62 billion, cementing its position as the sector’s anchor player.
A distant second is Turaco Micro Insurance, which holds 24.1% market share with premiums of about Sh519.4 million, reflecting its growing footprint in embedded and digital insurance solutions.
Together, the two firms account for over 99% of the total micro-insurance market, highlighting the sector’s highly concentrated structure.
Beyond the top two, the rest of the market remains marginal with Birdview Micro Insurance holding just 0.8 % (KSh 16.8 million) while CIC Micro Insurance accounts for 0.4% (Sh9.1 million)
Meanwhile, Star Discover Micro Insurance reported KSh 102.8 million in premiums, but its market share was not captured in the official distribution, pointing to possible reporting gaps or classification issues within the segment.
Micro-insurers are prioritising capital preservation and liquidity, a critical requirement given the volatility of risks in low-income markets.
By concentrating investments in treasury bills, bonds, and fixed deposits, firms are positioning themselves to meet claims quickly while maintaining financial stability.
The segment’s expansion is also bringing increased claims pressure. Claims rose sharply to KSh 755 million, pushing the loss ratio to 57.7%, a significant jump from the previous year.
