Kenya's insurance industry recorded strong growth with gross direct premiums rising 16.5% to KES466.58bn ($3.61bn), up from KES400.59bn in 2024, according to a statement released by the Insurance Regulatory Authority (IRA).
The performance shows the resilience and expanding contribution of the insurance sector to the protection of Kenyan households, businesses and the wider economy, said the IRA. Insurance penetration increased to 2.63% from 2.45% in 2024, reaching its highest level since 2016. Long-term (life) insurance penetration stood at 1.34%, while general insurance penetration was 1.28%.
Insurance density, which measures the average premium paid per person, also increased to KES8,675, up from KES7,573 in 2024. The growth reflects increasing demand for insurance and the sector’s expanding role in strengthening household and business resilience, said the IRA.
Total claims and policyholder benefits under long-term business increased 15.69% to KES122.81bn, while claims paid under general and microinsurance business rose by 14.31% to KES104.47bn.
Profits
Direct insurers in Kenya recorded a profit of KES22.37bn ($172.8m) for 2025, while reinsurers posted a profit of KES5.28bn.
“Profitability moderated from the previous year amid higher finance and service expense,” the IRA said.
Long-term business leads growth
Long-term (life) insurance recorded the strongest growth among the mainstream segments, with gross direct premiums increasing 23.20% to KES236.29bn. The life fund carried forward, comprising assets set aside to meet policyholders’ obligations, grew by 22.90% to KES990.27bn, bringing it close to the KES1tn mark. Deposit Administration, at KES81.22bn, and Personal Pensions, at KES24.54bn, also recorded strong growth, pointing to increased uptake of long-term savings and retirement products.
General insurance expands, led by medical
General insurance premiums grew by 9.37% to KES224.24bn. Medical insurance remained the largest class and was among the fastest growing, with premiums increasing 22.30% to KES93.20bn. Motor insurance continued to account for a significant share of general insurance business, with Motor Private premiums reaching KES32.8bn and Motor Commercial premiums KES29.78bn.
Microinsurance accelerates
Microinsurance recorded exceptional growth, with premiums increasing almost tenfold to KES2.17bn, from KES234.23m in 2024. The sharp increase signals growing efforts to extend affordable insurance protection to previously underserved segments of the population.
Financial position
The industry’s financial position remained strong, with total assets increasing 20.45% to KES1.51tn at 31 December 2025, compared to the end of 2024. Investments grew by 18.87% to KES1.31tn, while shareholders’ funds increased by 11.01% to KES257.60bn.