Nairobi and Kiambu lead Kenya in insurance uptake while rural counties continue to lag far behind

Nairobi and Kiambu counties lead Kenya in individual insurance coverage, while many rural counties continue to lag, a recent Financial Sector Deepening (FSD) survey shows.

In 2024, 12% of residents in Nairobi and Kiambu held at least one insurance policy in their own name, excluding social health coverage. Murang’a followed at 11.3%, Nyeri at 10%, and Kirinyaga at 9.5%, while Kisumu, Siaya, and Meru recorded below 1.5% each.

The report links higher uptake to formal employment, thriving businesses, better literacy, and stable household incomes. Counties dominated by informal economies, such as Kitui, Taita-Taveta, Marsabit, West Pokot, Lamu, Homa Bay, and Kilifi, showed significantly lower coverage.

Limited insurance leaves households exposed to health emergencies, accidents, and income shocks, deepening poverty. Globally, insurance is a key indicator of financial literacy and economic stability.

The survey highlights that affordability remains the main barrier, cited by 76% of uninsured respondents, with women disproportionately affected. Other obstacles include lack of awareness, national IDs, and trust in providers. Previous policyholders cited high premiums and loss of income as reasons for dropping coverage.

Education also plays a crucial role: tertiary-educated Kenyans recorded 18.9% coverage, while those without formal education had just 1%. The findings underline the urgent need to expand financial literacy, make policies affordable, and strengthen insurance access for Kenya’s underserved rural communities.