Kenya’s micro-insurance industry is gradually strengthening its position within the wider insurance market, supported by rising investment levels and growing activity as insurers intensify efforts to reach lower-income consumers.
Fresh data from the Insurance Regulatory Authority (IRA) indicates that investments held by micro-insurers stood at KSh 848.2 million by the close of Q4 2025.
The sector’s investment strategy remains heavily tilted towards low-risk assets. Government securities accounted for 68.4% of the portfolio, while term deposits made up the remaining 31.6%, effectively dominating the entire allocation mix.
Although the segment is still relatively small, it is expanding rapidly within Kenya’s insurance landscape. Gross premiums reached KSh 2.17 billion, representing less than 1% of the industry’s total premium pool of KSh 464.7 billion. Even so, the figures point to considerable room for future growth.
Premium growth has been particularly striking, rising more than eightfold year-on-year, signalling stronger adoption among previously underserved groups.
Expanding insurance access
Growth in the segment is being driven by products tailored for small-scale farmers, informal workers, and micro and small enterprises.
Many of these insurance solutions are distributed through mobile technology and strategic partnerships, helping insurers overcome longstanding obstacles such as affordability, accessibility, and product complexity.
Britam continues to dominate the market, controlling 75.1% of the micro-insurance segment with premiums amounting to KSh 1.62 billion.
Turaco Micro Insurance ranks second with a 24.1% market share and premiums of roughly KSh 519.4 million, reflecting its increasing influence in digital and embedded insurance products.
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Combined, the two companies account for more than 99% of the market, underlining the highly concentrated nature of the sector.
Other players remain relatively small. Birdview Micro Insurance holds 0.8% market share with KSh 16.8 million in premiums, while CIC Micro Insurance accounts for 0.4% at KSh 9.1 million.
Star Discover Micro Insurance reported KSh 102.8 million in premiums, although its market share was not reflected in the official breakdown, suggesting possible reporting inconsistencies or classification challenges.
Focus on liquidity and stability
Micro-insurers are continuing to prioritise liquidity and capital preservation, a crucial approach given the unpredictable risk profile associated with low-income markets.
By concentrating investments in treasury bills, government bonds, and fixed deposits, firms are positioning themselves to settle claims promptly while safeguarding financial stability.
At the same time, rapid growth is increasing pressure on claims payouts. Claims climbed sharply to KSh 755 million, driving the sector’s loss ratio to 57.7%, significantly higher than the previous year.
