By Janet Nyamwamu
Across Africa, the insurance conversation is shifting from corporate boardrooms to the public square. From the Sahel to the Great Lakes, governments are recognising that no economy can withstand the shocks of climate change, disease outbreaks, or economic disruption without strong public understanding of insurance and reinsurance.
But numbers tell a different story: insurance penetration in Africa is less than 3 percent, compared with over 7 percent in Asia. To most Africans, insurance is viewed as an unnecessary cost, not a tool for resilience.
Kenya’s Renewed National Focus
For a long time, Kenya has been regarded as the financial nerve centre of East Africa, but it is now taking deliberate steps to alter that perception. The government, through the Insurance Regulatory Authority and the National Treasury, is working with Parliament to make insurance education a national priority.
The country’s Draft National Insurance Policy identifies consumer education, awareness, and market confidence as pillars of reform, while players in the industry like the Association of Kenya Insurers, AKI, and Kenya Reinsurance Corporation, Kenya Re, drive outreach campaigns under the banner Bima Mashinani — literally “Insurance to the People.”
These shows attempt to explain, in simple terms, how insurance mitigates losses among households and communities, from crop failures and floods to medical emergencies and accidents.
The Parliament Intervenes
The Parliament of Kenya passed the Insurance Professionals Bill (National Assembly Bill No. 13 of 2024), led by Hon. Kuria Kimani, to professionalise Kenya’s insurance industry through the establishment of certification standards, a registration committee, an independent disciplinary mechanism, and a new Insurance Institute of Kenya governed by a council, as well as an Examinations Board. The bill, which had been debated on the basis that many Kenyans do not trust insurance due to a poor reputation and one that is not understood, was also supported by MPs who argued it had to be accompanied by a national awareness campaign to protect “ordinary” citizens from unlicensed brokers. On 17 June 2025, President William Ruto assented to the Bill, making it law.
For citizens, this law means increased protection: through enforcement of professionalism, ethics, and continuous development amongst insurance agents, it should help rebuild public trust, reduce fraud and make insurance products more accessible and transparent with the ultimate aim of improving financial inclusion and protection for more Kenyans. Reinsurance and Resilience
In addition to consumer education, Kenya is also strengthening public awareness of reinsurance-a concept normally confined to the industry circles. Kenya Reinsurance Corporation, one of the oldest reinsurers in Africa, has been expanding outreach through university lectures, youth innovation forums, and workshops on how reinsurance stabilizes national economies during disasters.
Reinsurance, executives argue, must be understood not just as a transfer of corporate risk but as one that protects entire communities: when local insurers are overwhelmed, as in the case of major floods, pandemics, or infrastructure damage, it is reinsurance that provides the financial buffer that keeps national recovery on track.
Oversight and Policy Drive
The proposals for the budget to finance the public education initiatives through the IRA are now before the Departmental Committee on Finance and National Planning in Parliament and the Senate Committee on Finance and Budget. They are also reviewing compliance issues by insurers accused of misleading advertising and delayed claims — issues that directly undermine public confidence.
The Ministry of National Treasury and Economic Planning, in collaboration with the Insurance Regulatory Authority, is set to embark on a concerted countrywide insurance-awareness campaign in 2026 targeting counties, youth groups, and micro-enterprises.
Challenges Ahead
Despite these various efforts, uptake remains slow. One in every ten households in Kenya owns active insurance outside of mandatory motor or health cover, according to the 2024 FinAccess Household Survey. Key barriers cited by most are affordability and “lack of trust.”
Experts caution that unless education is coupled with enforcement and fair-claims practices, awareness alone will not translate into higher coverage.
A Continental Shift
Kenya’s model – combining regulation, legislation, and education – has drawn interest from other African countries, including Ghana, Zambia, and Rwanda, where similar bills are being considered.
With an increasing prevalence of climate-related disasters, pandemics, and economic shocks across Africa, making insurance relatable and trustworthy ceases to be a private-sector agenda; it is now more of a public necessity.