20,000 Tana River Households To Get An Expanded Flood Cover From Britam

Britam Connect is scaling up its pioneering Index-Based flood insurance programme to protect 20,000 vulnerable households in Tana River County, following a successful pilot that paid out KSh15 million to 300 families affected by devastating floods in 2023.

The expansion comes as Kenya grapples with increasing climate volatility, with the Kenya Meteorological Department warning of above-average rainfall across several counties during the ongoing short rains season.

Insurance penetration in Kenya remains below 3 per cent, according to the Insurance Regulatory Authority’s (IRA) latest sector report, with climate-related coverage even lower among low-income households.

The initiative is supported by the InsuResilience Solutions Fund and brings together Britam Connect as lead insurer, Arid Lands Development Focus (ALDEF) on community engagement, and Zambian consultancy Risk Shield on technical design.

Evah Kimani, Britam Connect CEO, said the expansion demonstrates how inclusive insurance can build resilience among communities most exposed to climate shocks. “Behind every cover is a person seeking dignity and security in moments of uncertainty,” she said. “The success of our pilot proved that parametric insurance can provide swift, dignified support to families when floods strike, without the delays of traditional claims processes.”

The insurance product uses satellite rainfall data and river-gauge measurements to trigger automatic payouts when flooding thresholds are breached, eliminating paperwork and enabling rapid financial relief. Coverage will be bundled with a mobile-based early warning system that leverages existing infrastructure and local women’s groups to deliver timely flood alerts.

Tana River County experienced devastating floods in late 2023 and early 2024 when the river overflowed twice, affecting more than 10,200 households according to the Kenya Red Cross Society. The region remains highly vulnerable, with predominantly Muslim and women-led households facing limited access to financial protection mechanisms.

The 2023 pilot demonstrated the model’s viability, with participating households using payouts to rebuild homes, restart businesses, and purchase essential supplies. This success led to the signing of a Memorandum of Understanding (MoU) between Britam and the Tana River County Government to expand the programme’s reach and impact.

Liza Maru, Head of Innovation at Britam Connect, said the approach represents a fundamental shift in disaster response. “This is a game-changer because it offers swift, dignified support rather than reactive humanitarian aid,” she said. “By combining clinical data, supportive services, and digital innovation, we’re demonstrating that value-based protection can work for insured families whilst remaining commercially viable.”

Britam Connect, which holds approximately 60 per cent of Kenya’s microinsurance market and protects more than 5 million lives, has emerged as a leader in climate risk products. The company’s climate portfolio includes weather index and area yield crop insurance alongside livestock coverage, protecting a cumulative 560,000 farmers and pastoralists.

The expansion aligns with Kenya’s National Climate Change Action Plan and the government’s efforts to scale up disaster risk financing mechanisms. The Central Bank of Kenya has identified climate risk insurance as a priority area for financial sector development, particularly for vulnerable populations in arid and semi-arid lands.

ALDEF will identify implementation areas, facilitate community engagement, and ensure adherence to safe programming standards, whilst Risk Shield supports product refinement and risk modelling. Britam Connect will handle underwriting and regulatory compliance.

The programme targets predominantly low-income households with limited access to formal financial services, focusing on women-led families who bear disproportionate impacts from climate shocks. Premium structures have been designed to align with irregular income patterns common in agricultural and pastoral communities.

Britam Connect achieved full regulatory licensing as Britam Microinsurance Company (K) Limited in 2025, reinforcing its capacity to deliver inclusive insurance solutions on a scale. The company processes claims in approximately 10 minutes on average and maintains an 80 per cent client satisfaction score.

The Tana River initiative forms part of Britam’s broader climate resilience strategy, which includes partnerships with development institutions, mobile network operators, and grassroots organisations to embed protection into everyday financial ecosystems.

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