Insurance Regulatory Authority Chief Executive Officer Godfrey Kiptum / /HANDOUT
Kenya's insurance sector recorded its strongest expansion in 2025, with total premiums rising 16.5 per cent to Sh466.58 billion as more people turned to insurance for financial protection.
The Insurance Regulatory Authority (IRA), in its latest 2025 Annual Insurance Industry Statistics, shows premiums increased from Sh400.59 billion in 2024.
The growth pushed insurance penetration, the amount Kenyans spend on insurance compared with the size of the economy, to 2.63 per cent from 2.45 per cent in 2024.
This was the highest penetration level recorded since 2016, signalling a gradual increase in the role of insurance in the Kenyan economy.
“Long-term (life) insurance recorded the strongest growth among the mainstream segments, with gross direct premiums increasing 23.20 per cent to Sh236.29 billion,” IRA said in the report.
The value of assets held in life insurance funds also increased 22.9 per cent to Sh990.27 billion, bringing the figure close to the Sh1 trillion mark.
Growth was also recorded in long-term savings products, with Deposit Administration premiums reaching Sh81.22 billion and Personal Pensions at Sh24.54 billion.
General insurance premiums, which cover areas such as medical, motor and property risks, rose 9.37 per cent to Sh224.24 billion.
Medical insurance was the largest contributor in this segment, with premiums jumping 22.3 per cent to Sh93.2 billion.
Motor insurance remained another major source of premiums, with private motor insurance generating Sh32.82 billion and commercial motor insurance Sh29.78 billion.
One of the fastest-growing areas was microinsurance, where premiums increased nearly tenfold from Sh234.23 million in 2024 to Sh2.17 billion in 2025.
The sharp increase points to growing demand for cheaper insurance products among people and businesses that have traditionally had limited access to insurance.
The industry also paid out more to customers during the year.
Claims and benefits from long-term insurance increased 15.69 per cent to Sh122.81 billion, while claims paid under general and microinsurance rose 14.31 per cent to Sh104.47 billion.
The sector's financial position also strengthened, with total assets increasing 20.45 per cent to Sh1.51 trillion. Investments rose 18.87 per cent to Sh1.31 trillion, while shareholders’ funds grew 11.01 per cent to Sh257.6 billion.
Direct insurers posted a combined profit of Sh22.37 billion, while reinsurers made Sh5.28 billion. However, profitability moderated from the previous year amid higher finance and service costs.
Insurance spending remains heavily concentrated in Nairobi, which accounted for 81.1 per cent of all premiums in 2025.
“Nairobi County continued to account for the largest share of insurance premiums at 81.1 per cent, followed by Mombasa at 3.3 per cent, Kiambu at 2.7 per cent and Nakuru at 1.8 per cent,” the report notes
According to the regulator, the concentration of premiums in Nairobi reflects the county’s dominant share of economic and commercial activity, while also highlighting significant opportunities to deepen insurance penetration and expand access across other counties.
The regulator said it will continue supporting a stable and innovative insurance market while promoting affordable products and expanding access to insurance across Kenya.
The regulator has been rolling out its Insurance Open Days initiative across four counties, comprising to boost public awareness and insurance uptake.
The engagements impacted more than 6,000 residents, with IRA aiming to strengthen consumer protection and improve access to insurance information at the grassroots level.
