New industry insights highlight low insurance penetration and growing role of banks in expanding access to financial protection.
NAIROBI, Kenya — Bancassurance is increasingly being positioned as a critical solution to Kenya's low insurance penetration, particularly among women, as financial institutions seek to make insurance products more accessible and affordable.
According to a press statement by Cynthia Munene, women play a central role in building and managing household wealth, yet many remain financially vulnerable due to limited insurance coverage.
The Association of Kenya Insurers (AKI) estimates that only 2.4 percent of Kenyans have insurance, significantly below the global average of 7 percent. The statement notes that insurance is still widely viewed as a discretionary expense rather than a core component of financial planning.
The low uptake is especially concerning for women, who statistically outlive men by between five and seven years. As a result, many women may spend later years managing households and finances without the income or support of a spouse.
"Insurance is not a luxury reserved for the wealthy; it is a tool that protects everything else a woman has worked to build," the statement says, noting that unexpected events such as illness, fire or accidents can quickly erode years of financial progress.
Affordability and trust remain major barriers
The statement cites a 2025 GeoPoll survey identifying affordability, irregular incomes and mistrust of insurers as the leading reasons many Kenyans remain uninsured.
Women operating informal businesses, side hustles or managing household finances often face greater challenges in setting aside money for insurance premiums, while concerns over delayed claim settlements and disputed payouts continue to discourage uptake.
The Insurance Regulatory Authority (IRA) has also previously identified public mistrust of insurance providers as one of the key obstacles to expanding insurance coverage.
Banks helping bridge the insurance gap
The statement argues that bancassurance — where banks distribute insurance products through partnerships with insurance companies — is helping address these challenges by integrating insurance with everyday banking services.
Rather than treating insurance as a separate financial decision, customers can access protection alongside savings, investment and lending products through institutions they already trust.
Absa Bank Kenya is highlighted as the country's leading bancassurance operator, with its bancassurance business reportedly recording KSh1 billion in after-tax profits, reflecting growing customer confidence in the model.
Through its subsidiary, Absa Bancassurance Intermediary Limited (ABIL), the bank has partnered with several insurers to offer products targeting different customer segments.
Among them is Linda Biz, developed in partnership with Old Mutual Kenya, which provides business asset, medical and life insurance tailored for small and medium-sized enterprises (SMEs).
The statement notes that the product is particularly relevant for women entrepreneurs, who own and operate a significant proportion of Kenya's SMEs and often face substantial financial losses when businesses are uninsured.
Call for greater financial preparedness
The statement urges Kenyan women to view insurance as an essential part of long-term wealth protection rather than a future consideration.
It argues that integrating insurance into broader financial planning can help families withstand unforeseen shocks without sacrificing years of accumulated wealth.
"As women continue to shoulder much of the responsibility for household financial wellbeing, protecting those gains through insurance should become a financial priority," the statement concludes.