More Than Half Of Kenyan SMEs Do Not Have An Insurance Cover

In a landmark gathering that blended vision with action, AAR Insurance made history by hosting the inaugural East Africa Sales Conference 2025 under the theme, “Business Unusual.”

Held at the Safari Park Hotel in Nairobi, the event united over 200 delegates—agents, industry leaders, policymakers, and stakeholders—from across the region, all united by a shared mission: reimagining the future of insurance in East Africa.

The conference served as a unique platform for participants to recalibrate, reimagine, and redefine their sales and customer engagement approach in today’s ever-evolving landscape. It underscored the critical need for the insurance industry to embrace a forward-thinking mindset and leverage collaboration and innovation to address emerging challenges and opportunities. AAR Insurance highlighted the urgency for the industry to break free from traditional molds, embrace collaborative thinking, and harness technology to meet evolving customer needs.

During the conference, AAR Insurance, in partnership with WYLDE International, launched the pivotal ‘Insurance Usage & Awareness Report 2024.’ This report, a significant contribution to the industry, shares key insights on the SME subsector while highlighting substantial gaps and opportunities. The report reveals that 53% of SMEs remain uninsured, while 52% rely on just one provider for coverage. This presents an opportunity for insurers to diversify their offerings and address the critical need for greater awareness and education about insurance solutions.

AAR Insurance Kenya Group CEO Justine Kosgei commented on the findings, saying, “Many small businesses are still finding it challenging to protect themselves from the risks they face fully. To address this, we must raise awareness about the variety of insurance products available and engage more closely with SMEs to understand their unique needs. By developing tailored solutions, we can help these businesses build the resilience and confidence they need to grow. Insurers, policymakers, and SMEs must work together to create a sustainable environment where businesses are equipped to face challenges, unlock new opportunities, and contribute to economic growth in the region.”

The report also reveals a growing demand within the SME sector: Over 70% of SMEs expressed interest in insurance, provided solutions are tailored to their needs and focus on affordability and accessibility. This highlights an opportunity for insurers to innovate with products and invest in educational initiatives and advisory services that empower SMEs to understand and navigate their insurance options more effectively.

On his part, WYLDE International CEO Christopher Odongo said, “Misinformation has long made it difficult for business owners to access reliable information about insurance solutions. Risk management is often misunderstood, and the complexity of insurance can be overwhelming. However, the growing adoption of digital platforms presents a significant opportunity to bridge this gap. By leveraging technology, we can engage more effectively with SMEs, simplify the insurance process, and provide more accessible information that empowers business owners to make informed decisions and confidently protect their businesses.”

Despite the traditionally low insurance uptake in East Africa, there is a significant potential for growth and innovation. With Kenya’s penetration at just three per cent, challenges such as limited awareness, cost concerns, and prevalent misconceptions about the value of risk management have impeded the sector’s growth. However, with increasing access to mobile technology and digital platforms, insurers can innovate, offer more accessible products, and simplify the process, helping to drive greater coverage and close the regional gap. This presents a promising future for the insurance sector in East Africa.

AAR Insurance remains steadfast in its commitment to advancing the insurance sector across East Africa, positioning itself as a vital catalyst for resilience and innovation. By leveraging the insights shared at the conference, the company is dedicated to offering accessible and customized insurance solutions that contribute to a more robust, sustainable ecosystem in the region.

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