The general insurance industry in Kenya is projected to grow at a compound annual growth rate (CAGR) of 9.1%, increasing from KES238.8 billion ($1.6 billion) in 2025 to KES338.3 billion ($1.9 billion) by 2029, in terms of gross written premium (GWP), according to GlobalData, a leading data and analytics company.
According to GlobalData’s Kenya General Insurance Report, the general insurance market in Kenya is estimated to register an annual growth rate of 9.9% in 2025. This growth is attributed to increasing adoption of microinsurance, the rise of Insurtech solutions, and the introduction of inclusive insurance products aimed at underserved populations. Additionaly, the advancements in digital capabilities and a growing emphasis on sustainability will support the market to expand during 2025-29.
Swarup Kumar Sahoo, Senior Insurance Analyst at GlobalData, comments: ” The low insurance uptake in Kenya highlights a significant opportunity for insurers to innovate and reach underserved segments. The introduction of inclusive insurance plans and partnerships with fintech companies are some of the essential steps toward enhancing coverage and addressing the needs of diverse consumer groups.”
Personal accident and health is the largest line of business and is expected to account for 38.1% of the general insurance GWP in 2025. The growth of PA&H insurance in Kenya is currently facing challenges, with a high loss ratio of 78.6% in 2024, and the introduction of the Social Health Insurance (SHA) is impacting private health insurance growth.
Sahoo adds: “However, innovative products targeting specific demographics, such as women-focused plans, are expected to drive growth; however, a slowdown in growth is expected to continue until 2027. Inclusive and affordable coverage initiatives are essential for expanding the customer base and enhancing overall growth in the segment.”
Motor insurance, the second largest line of business, is expected to account for 27.3% of the general insurance GWP in 2025. This line of business is projected to grow at a CAGR of 7.0% during 2025-29. Despite recent challenges, including a 2.7% decline in vehicle sales in 2024 as reported by Kenya Motor Industry Association (KMI), increasing demand for affordable second-hand vehicles, government initiatives promoting electric vehicles (EVs), and competitive pricing dynamics following regulatory changes are expected to drive the motor insurance market. The National Energy Efficiency and Conservation Strategy has set a goal for EVs to comprise 5% of all registered vehicles by the end of 2025.
Property insurance is expected to account for 16.6% of the general insurance GWP in 2025, driven primarily by fire and natural hazard coverage, which accounted for 71% of the property insurance market. Recent events, such as the devastating effects of the El Nino weather phenomenon during March-May 2024, have underscored the importance of robust property insurance solutions.
As per the Kenyan Red Cross Society, cyclones resulted in the loss of 11,000 livestock and 65,000 acres of cropland in 2024. The establishment of the Geothermal Risk Underwriting Facility in September 2024 is expected to further bolster the sector by providing coverage for geothermal project risks, thereby enhancing the role of local insurance in mitigating climate-related challenges.
Other general insurance lines, such as liability, marine, aviation and transit, and miscellaneous, are estimated to account for the remaining 18% share of the general insurance GWP in 2025.
Sahoo concludes: “The outlook for Kenya’s general insurance market remains optimistic, supported by several factors such as economic growth, an underpenetrated market, and increasing awareness. Continued focus on digital transformation, the expansion of microinsurance, and the introduction of inclusive products are critical to enhance insurance penetration. Losses due to natural disasters and the expected reciprocal tariffs from the US may change the dynamics and are expected to pose a threat to insurers’ profitability.”
