Low insurance uptake fuels sector's shift

Caption

Insurance penetration in East Africa remains among the lowest globally, with Kenya estimated at just about 2.1 per cent compared to a global average of around seven per cent and South Africa’s roughly 12 per cent. 

The gap has left millions of households, small businesses and informal sector workers outside formal financial protection, exposing them to significant financial shocks from health emergencies, accidents and loss of income. 

Industry players say the sector’s heavy reliance on corporate clients has limited reach into the mass market, while rising competition, fraud risks and affordability concerns continue to slow expansion. 

Insurers are now increasingly turning to technology, mobile platforms and alternative distribution channels to deepen penetration and reach underserved groups such as Sacco members, small and medium-sized enterprises (SMEs), women and gig economy workers. 

It is against this backdrop that Jubilee Holdings has announced a stronger push into retail insurance and digital-led expansion as it seeks to widen access to financial protection across East Africa. 

Speaking during its 88th Annual General Meeting in Nairobi on Thursday, the firm reported an 18 per cent rise in net profit to Sh5.6 billion and an 18 per cent growth in gross written premiums and deposit administration contributions to Sh62.4 billion for the year ended 2025. 

Chairman Zul Abdul said the group’s next phase of growth will focus on building a broader financial wellness ecosystem beyond traditional insurance. 

“Entering our 90th year is a significant milestone for Jubilee. It reflects the trust we have built over decades,” he said. “Our priority is to grow beyond  traditional insurance by building a broader financial wellness ecosystem that reaches more customers, more communities and more markets across East Africa.” 

Chief Executive Dr Julius Kipngétich said the company’s 2026 strategy is centred on increasing market penetration through retail expansion and digitalisation. 

“We had a very successful 2025, and I think the strategy for the next year, for 2026, is going to be how do we increase penetration in the market,” he said.

“We intend to do this by reaching out to the men on the street by using more technology, so digitalisation is going to be our main focus for 2026.” 

He noted that the market has historically been driven by corporate business but said this model is becoming saturated and exposed to fraud risks, pushing insurers to rethink their approach.