Kenya’s insurtech startups have attracted an estimated Sh8.54 billion ($66 million) in venture funding over the past five years, cementing the country’s position as one of Africa’s leading innovation hubs in insurance technology.

The inflows place Kenya second on the continent behind South Africa, which leads with about $142 million (Sh18.38 billion). Nigeria follows closely with about $54 million (Sh6.99 billion), according to data compiled in the latest African insurtech landscape report by AfricInvest.

An insurtech company (short for insurance technology) is a business that uses modern software, artificial intelligence, and digital tools to make the insurance process faster, simpler, and more efficient.

The growing investor appetite for insurtechs points to the rising confidence in startups seeking to disrupt how insurance products are designed, distributed and consumed, particularly in markets such as Kenya where penetration is under three percent.

“South Africa and Kenya are the continent’s most active insurtech markets. Both benefit from vibrant innovation ecosystems, higher insurance adoption and enabling regulatory frameworks and sandboxes that support productive partnerships,” said the report.

Kenya’s position has been reinforced by the BimaLab accelerator and its regulatory sandbox, which have helped establish Nairobi as the continent’s insurtech innovation hub alongside Johannesburg and Lagos.

The rise in funding comes as insurtech firms play an increasingly central role in narrowing Africa’s vast insurance protection gap.

The AfricInvest report said at least six in 10 Africans now have access to banking or mobile money services, but fewer than two in 10 hold any form of insurance cover.

Read: Kenyan banks, insurers court tech startups for digital products expansion

The high protection gap has created an opportunity for technology-driven insurers to expand access using digital platforms, embedded insurance and microinsurance products tailored to low-income populations.

“African insurtech startups are frontrunners in insurance bundled with financial services (through MFI and bank partnerships), in health insurance combined with wellness services, and in cross-border expansion,” said the report.

Some of the insurtechs listed in the report as having a presence in Kenya are CarePay, PULA, Lami, Turaco, mTek (which was acquired by Singapore-based bolttech in December 2025), Bluewave, Kakbima, Vooli Insurtech Limited, ACRE Africa, Incourage and PesaKit.

The insurtechs in Kenya are riding on mobile-first models and partnerships with telecoms, banks and agribusiness platforms to reach millions of previously uninsured customers. These models significantly reduce distribution costs, which is one of the biggest barriers to insurance uptake.

Kenya is seeing an increase in microinsurance products as insurers go big on the informal sector. The low-cost policies, which are often bundled with everyday services such as mobile airtime or agricultural inputs, are making insurance affordable and relevant to informal sector workers.

The country’s strong performance in attracting insurtech capital has been driven by a supportive regulatory environment and a mature fintech ecosystem. For instance, initiatives such as regulatory sandboxes and incubation programmes have enabled startups to test products and scale faster.

The presence of mobile money infrastructure has also given Kenyan firms an advantage in distribution compared to many other African markets.

Local startups are increasingly adopting embedded insurance models, where coverage is integrated into existing products or services.

This approach mirrors trends seen in Asia, where insurtech ecosystems have scaled rapidly.

The AfricInvest report showed that across Africa, investors have deployed more than $300 million (Sh38.83 billion) into insurtech ventures over the past five years, with funding peaking in 2025.

Beyond Kenya, Egypt and Morocco are also emerging as notable markets, while regional expansion strategies are becoming more prominent among startups seeking scale.

→ palushula@ke.nationmedia.com

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