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International technology and insurtech companies are intensifying their focus on Kenya's embedded insurance sector, aiming to boost the nation's low insurance penetration by integrating coverage directly into everyday transactions.
On Tuesday, October 8, 2025, global payments technology firm Mastercard announced a strategic collaboration with Kenyan insurtech company Hillcroft (mTek) to introduce embedded insurance solutions across East Africa. This initiative seeks to integrate tailored insurance products directly into Mastercard's consumer and Small and Medium-sized Enterprises (SME) card offerings. The goal is to provide millions of individuals and businesses with convenient and affordable coverage through existing payment ecosystems.
Shehryar Ali, Senior Vice President and Country Manager for East Africa and Indian Ocean Islands at Mastercard, stated that the collaboration reflects Mastercard's commitment to financial inclusion by making protective cover accessible through the payment experience. Hillcroft (mTek) CEO Bente Krogmann highlighted that the partnership allows them to scale their technology and reach a wider audience, aiming to deliver simple, affordable, and impactful solutions for underserved communities.
This development follows another significant entry into the Kenyan embedded insurance market. On Friday, August 29, 2025, global insurtech firm Bolttech announced its partnership with LOOP, NCBA Group's digital banking service, to launch LOOP Flex Device Financing. This Buy Now, Pay Later (BNPL) solution, set to debut in October, will allow customers to finance and protect their devices with embedded insurance against theft, accidental damage, and mechanical breakdown.
Eric Muriuki, CEO of LOOP DFS, emphasised that the partnership aims to empower customers with necessary devices through transparent financing and provide peace of mind with comprehensive protection. Stephan Tan, CEO EMEA and Group Chief Investment Officer at Bolttech, noted Kenya's dynamic digital economy as a key reason for their entry, underscoring the importance of embedding protection into the device ownership journey.
Embedded insurance refers to insurance products seamlessly integrated into a customer's buying experience, often at the point of sale, without requiring a separate application process. This model leverages technology to streamline underwriting and claims, making insurance more convenient and accessible. Examples include travel insurance offered when booking a flight or device protection when purchasing a smartphone.
Kenya's insurance penetration rate remains low, at approximately 2.4% as of the first half of 2024, according to the Q4'2023 Insurance Regulatory Authority (IRA) and the Kenya National Bureau of Statistics (KNBS) 2024 Economic Survey. This figure is significantly below the global average of 7.0%. Factors contributing to this low uptake include a poor saving culture, low disposable incomes, and a perception of insurance as a non-essential service.
Despite these challenges, the Kenyan insurance sector has shown resilience. Gross premium income for Kenyan insurers grew by 89.1% between 2017 and 2024, rising from KSh 209.0 billion to KSh 395.3 billion. The sector recorded a 9.4% growth in gross premium to KSh 395.3 billion in the financial year 2024, up from KSh 361.4 billion in 2023, according to the Q4'2024 IRA industry report.
The entry of global players like Mastercard and Bolttech, in partnership with local entities, aims to address the low penetration by offering micro-insurance products and leveraging digital distribution channels. This approach can reduce distribution costs, lower premiums, and increase awareness among segments of the population unfamiliar with insurance benefits.
The Insurance Regulatory Authority (IRA) of Kenya has acknowledged the surge in insurtech activity and announced plans to review guidelines around digital and bundled insurance products. Godfrey Kiptum, IRA's Commissioner of Insurance, stated in a March 2025 forum that a balance must be struck between innovation and accountability, ensuring embedded insurance is clear, fair, and easy to claim.
Current regulations require insurance businesses to be conducted by registered persons, with licensing requirements and fees varying based on the registration type (insurer, broker, agent, or other service provider). The Insurance Act (1987, as amended) specifies minimum paid-up share capital, which is KES 150 million for Long-Term Insurance and KES 300 million for General Insurance.
The global embedded insurance market was valued at USD 119.16 billion in 2024 and is projected to grow to USD 802.57 billion by 2032, exhibiting a Compound Annual Growth Rate (CAGR) of 27.8% during the forecast period. The Middle East and Africa (MEA) region is experiencing considerable demand, driven by rising internet penetration and increased awareness of insurance products.
The embedded insurance industry in the Africa & Middle East region is expected to grow by 40.2% annually, reaching US$2,329.0 million in 2022, and is projected to grow steadily at a CAGR of 24.6% during 2022-2029, with revenues increasing to US$7,763.3 million by 2029.
While the potential for embedded insurance in Kenya is significant, questions remain regarding the long-term impact on traditional insurance providers and the regulatory framework's ability to keep pace with rapid technological advancements. The IRA's review of guidelines is crucial to ensure consumer protection and fair competition as more global players enter the market.
Stakeholders will be closely watching the implementation of the new embedded insurance solutions by Mastercard and Bolttech, particularly their reach into underserved segments. The forthcoming guidelines from the Insurance Regulatory Authority on digital and bundled insurance products will be critical in shaping the future of this evolving sector in Kenya. Further partnerships between global tech firms and local entities are also anticipated as the market continues to mature.
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