Kenya’s insurance industry registered solid growth in 2024, reflecting strengthened operations, higher investment income and stabilising compliance under the IFRS 17 reporting framework. The improved performance comes in the second year of the industry’s transition to the global accounting standard, which has reorganised how insurers recognise revenue, measure liabilities and report profitability.
With most companies having completed their compliance adjustments, attention shifted toward modernising internal systems, strengthening data capabilities and enhancing cross-functional collaboration. Executives across the sector have emphasised that 2024 marked a transition from compliance to optimisation, with many insurers investing in tools to boost efficiency and customer engagement.
Strong Growth in Core Insurance Activities
Industry data shows insurance service revenue rose by 8 percent to KES 275.18 billion, compared to KES 255.11 billion in 2023. The increase reflects growth across both life and non-life segments, as well as improved underwriting discipline and stronger demand for key products.
The insurance services result increased by 45 percent to KES 16.35 billion, up from KES 11.28 billion the previous year. The sharp rise points to enhanced operational efficiency, better risk management and more accurate alignment of pricing with claims experience. Industry analysts note that IFRS 17 has pushed insurers to improve modelling and internal controls, which is now being reflected in the underlying performance.
Investment income also delivered a major boost. Net investment income nearly doubled, rising 93 percent to KES 112.74 billion from KES 58.17 billion in 2023. The surge is attributed to stronger returns in fixed income, gains across money markets and a recovery in equity portfolios following economic stabilisation efforts and moderating inflation. Investment income remains a crucial contributor to overall profitability, particularly for life insurance providers that manage long-term savings and pension products.
Insurance penetration remained broadly stable, edging up to 2.44 percent from 2.41 percent in 2023. The figure is based on Gross Written Premiums of KES 395.3 billion against a GDP of KES 16.2 trillion. While the growth is marginal, it underscores the persistent challenge of expanding coverage in a market where uptake remains below the global average and underpenetration continues to limit scale.
Non-Life Insurance Maintains Market Leadership
The non-life segment remained the backbone of the industry, generating KES 204.25 billion in insurance revenue. This represents an increase of 8.52 percent from KES 188.53 billion in 2023, driven largely by medical and motor insurance, which continued to account for the bulk of non-life business.
Medical insurance remained the largest contributor, generating KES 73.47 billion, equivalent to 35.97 percent of non-life revenue. The segment has benefited from rising demand for private healthcare cover, employer-sponsored medical plans and increased awareness of health security following the pandemic years. However, medical claims inflation and fraud continue to put pressure on margins, prompting insurers to strengthen controls and invest in digital claims tools.
Motor insurance, both commercial and private combined, contributed KES 59.15 billion, representing 28.96 percent of the segment. Growth in motor cover is linked to higher vehicle imports, fleet expansion in logistics and public transport, and intensified enforcement of mandatory insurance rules. Insurers continue to balance competitive pricing with rising claims costs, prompting greater use of telematics, analytics and partnerships with repair networks.
Steady Growth in Life Insurance
Life insurance recorded steady performance, with revenue increasing by 7 percent to KES 70.9 billion compared to KES 66.4 billion in 2023. Group Life remained the dominant sub-segment, accounting for KES 37.2 billion or 52.47 percent of total life revenue. Corporates and SMEs continued to expand staff benefit packages, supporting demand for group covers.
Ordinary Life contributed KES 17.8 billion, representing 25.03 percent of the segment. Analysts note that the product remains central to long-term savings and protection planning, although uptake is still constrained by limited financial literacy and constrained household incomes.
Annuities and income drawdown products generated KES 7.8 billion, accounting for 10.94 percent. The segment continues to attract retirees seeking predictable long-term income. Pension and deposit administration business brought in KES 6.6 billion, representing 9.28 percent, supported by growth in retirement schemes and increased voluntary contributions. Investment and unit-linked products accounted for KES 1.6 billion or 2.28 percent, reflecting cautious investor sentiment amid market volatility.
Global Trends Influence Local Industry Strategy
The 2024 performance mirrored broader global developments in the insurance sector, particularly in technology and risk management. The adoption of Artificial Intelligence continues to accelerate, with insurers integrating automated workflows, predictive analytics and digital customer interfaces. AI-powered tools are increasingly being used for fraud detection, claims triage and customer onboarding.
However, advances in digitisation have simultaneously increased cyber risks. Insurers are now required to strengthen cybersecurity frameworks, both to protect their own systems and to support clients seeking cover for cyber-related losses. The rise in cybercrime incidents globally has positioned cyber insurance as a growth opportunity, although underwriting it requires sophisticated risk assessment capabilities.
Environmental, Social and Governance integration also remained a key industry priority. Insurers continued refining ESG frameworks, aligning product offerings, investment portfolios and operational practices with sustainability objectives. Firms are reassessing their approaches to meet the expectations of regulators, investors, employees and communities, especially as global standards evolve.
Talent Gaps and Regulatory Adjustments Shape the Operating Environment
Talent management remained a significant concern across the sector. The industry continues to face shortages in technology-oriented roles, including data science, cybersecurity and actuarial analytics. Widening generational gaps have raised concerns about long-term knowledge transfer, particularly in specialised insurance functions.
The regulatory landscape remained fluid, driven by ongoing tax reforms and policy developments. Insurers expect further adjustments in the coming year as the government implements additional tax measures and refines regulatory requirements related to financial reporting, consumer protection and market conduct.
Despite these challenges, industry leaders say the sector is better positioned for sustainable growth, supported by strengthened systems, deeper market insights and greater operational discipline. The focus for 2025 is expected to shift toward innovation, efficiency and unlocking new customer segments through digital distribution.
