Kenya’s Long-Term Insurance Sector Hits Ksh110.4B, Up 17% – IRA

Nairobi, Kenya — September 25, 2025 (EAT).

Kenya’s long-term insurance sector posted robust growth in the second quarter of 2025, with gross premium income climbing to Ksh110.4 billion, marking a 17.7% increase from the same period last year, according to the latest Insurance Regulatory Authority (IRA) report.

The Latest

The IRA report, released via the authority’s official Facebook account, shows strong demand for long-term insurance products, including life assurance, education policies, annuities, and retirement savings plans.

“Long-Term Insurance grew strongly in Q2 2025 insurance report with premiums at KES 110.39B,” the IRA said, noting that the sector’s expansion reflects improved awareness of financial planning among Kenyans.

The data covers the period ending June 30, 2025, and represents the second consecutive quarter of double-digit growth for the industry.

Context in Brief

• Historic growth trend: Kenya’s insurance penetration has remained below 3% for years, lagging behind peers like South Africa (12%) but showing recent momentum due to policy reforms and digital innovations.

• Macroeconomic factors: The growth comes despite economic headwinds, including currency volatility and inflationary pressure, which have strained household incomes but appear not to have dampened demand for long-term security products.

• Policy reforms: The Insurance Act amendments of 2023 introduced risk-based capital requirements and digital claims processing, strengthening sector stability.

Law, Policy, and Process

• Insurance Act (Cap 487): Mandates IRA to regulate, supervise, and promote Kenya’s insurance industry.

• Retirement Benefits Act (No. 3 of 1997): Guides annuity and pension-linked products, which drove much of the growth.

• Data reporting standards: Licensed insurers must file quarterly performance returns with IRA for oversight and policy planning.

Voices and Stakeholders

• IRA Commissioner of Insurance: “The growth in long-term insurance premiums shows growing public confidence in financial protection products,” said Godfrey Kiptum in a prior briefing.

• Association of Kenya Insurers (AKI): “Digital channels, including mobile platforms, have lowered entry barriers for first-time policyholders,” AKI noted in its mid-year outlook.

• Financial analysts: Cite rising middle-class incomes and corporate pension schemes as key drivers behind the surge.

Evidence & Data

• Gross premiums: Ksh110.4B (Q2 2025) vs. Ksh93.8B (Q2 2024) → 17.7% growth.

• Policy uptake: Life insurance accounted for 65% of total long-term premiums.

• Top players: Jubilee Life, ICEA Lion, and Britam retained over 50% combined market share.

• Digital penetration: 27% of new policies were sold via mobile apps or online platforms.

Risks and Implications

• Economic headwinds: Inflation and job losses could slow premium remittances in coming quarters.

• Regulatory tightening: New capital adequacy rules may strain smaller insurers.

• Investment performance: Returns on life funds remain exposed to market volatility.

What We Don’t Know

• How many new policyholders joined in Q2 2025 versus existing top-ups.

• The claims ratio trend for long-term products in the same quarter.

• Whether micro-insurance products drove significant uptake in rural areas.

Timeline

• 2023: Insurance Act amended to modernize reporting and risk oversight.

• Q1 2025: Sector reports 15% year-on-year growth in gross premiums.

• Q2 2025: Premium income hits Ksh110.4B, per IRA’s latest data.

What to Watch

• Q3 results: IRA to release updated performance data in December 2025.

• Regulatory changes: Possible review of digital insurance guidelines in early 2026.

• M&A activity: Analysts expect consolidation among smaller underwriters.

Related Coverage

• Digital Insurance Uptake Surges as Mobile Platforms Drive Growth

• Kenya Eyes 5% Insurance Penetration by 2030 with New Policy Reforms

• Micro-Insurance Products Gain Ground Among Low-Income Households