Kenya’s insurance industry recorded solid growth in the third quarter of 2025, driven by increased uptake of insurance products, strong investment performance, and continued product innovation.
Sector data released by the Insurance Regulatory Authority (IRA) on Wednesday shows that total industry gross written premiums rose to Sh352.29 billion by the end of September 2025, representing an 11.2 per cent increase compared to the same period in 2024.
“The performance of the insurance industry in Q3 2025 reflects growing public confidence in insurance as a key financial protection tool and long-term savings mechanism,” IRA boss Godfrey Kiptum said.
“We are seeing sustained expansion across both life and general insurance segments.”
According to the report, long-term insurance business posted particularly strong results, with premiums growing by 12.5 per cent to Sh165.36 billion, while total assets surpassed the one-trillion-shilling mark to reach Sh1.02 trillion.
“This milestone in asset growth underscores the increasing role of long-term insurance in mobilising domestic savings and supporting national development through investment,” the report reads.
General insurance business recorded steady expansion, with premiums reaching Sh185.40 billion, up 9.2 per cent from the previous year.
However, claims costs rose to Sh83.01 billion, pushing the claims ratio slightly higher.
“While claims payments increased, this is consistent with the industry fulfilling its core obligation of compensating policyholders and supporting recovery after losses,” the report notes. “Strong claims settlement is a sign that insurance is working.”
Microinsurance, which targets low-income households and underserved groups, continued to expand access to financial protection, generating Sh1.53 billion in premiums during the quarter.
This growth demonstrates progress toward inclusive insurance coverage, with affordable products helping households, small businesses, and informal workers manage risks that could otherwise push them into financial distress.
Innovation remained a key driver of industry growth.
During the quarter, IRA approved 45 new or repackaged insurance products, spanning health, motor, agriculture, investment-linked policies, and specialised covers.
The steady pipeline of new products shows that insurers are responding to emerging risks and changing consumer needs.
The report further shows that a total of 532 complaints were lodged during the period, with the majority relating to general insurance. Nearly half were resolved within the quarter.
“With protection of policyholders remaining at the heart of IRA’s mandate, we continue to strengthen complaint resolution mechanisms to ensure fair treatment of consumers,’’ Kiptum said.
The regulator reported 57 insurance fraud cases, several of which resulted in arrests and court prosecutions.
