mTek Partners with and Fin Africa to provide Insurance Covers to Over 100K Small-Scale Vendors 

mTek Partners with and Fin Africa to provide Insurance Covers to Over 100K Small-Scale Vendors 

Like most African countries, insurance penetration in Kenya is about 2.23%, compared to a global average of 7%, making Kenya the third lowest insurance penetration rate country in Sub-Saharan Africa, with South Africa leading at 17%, according to data from the Insurance Regulatory Authority, (IRA). Despite the low penetration rate, Africa’s insurance market was worth $75.3 billion in 2017 and is expected to grow to $115.9 billion by 2027, according to an IMARC report.

Life insurance premiums in Kenya increased by 21.51%, rising from  $825.5 million to over $1 billion. Non-life insurance premiums increased by 13.26% during the same period, from $1 billion to $1.2 billion in 2021. Total insurance premiums increased by 16.86% between 2020 and 2021, rising from $1.8 billion to $2.2 billion. This was supported by a redesigned operating model, increased consumer awareness, and economic recovery from COVID-19’s effects.

Source: Statista

Given the low penetration of insurance coverage among Kenyans and the obvious neglect of the informal sector of the economy, mTek, a digital insurance platform, has formed a strategic partnership with Kyosk. app and Fin Africa to provide insurance coverage to over 100,000 small-scale corner shops in the East African country known as Dukas.

How mTek Plans to provide Insurance to Over 100K Small-Scale Vendors in Kenya

Britam will provide the insurance through mTek’s digital system, which allows for paperless transactions, while will facilitate a direct and seamless link to its network of 100,000 informal retailers, and Fin Africa will provide affordable financing for insurance services.

This is another attempt by digital and traditional insurers to expand a market whose growth has been nearly stagnant over the years by reaching out to the often overlooked informal sector, which employs approximately 80% of Kenya’s working population and is underinsured although there are several insurable risks such as business interruption, theft, property damage, cyber-attacks, and stock loss.

Commenting on the partnership, Bente Krogmann, CEO of mTek said, “We have come together to become enablers and protectors of the informal retail sector through insurance products, contributing to the growth of Kenya’s economy.”

While Elijah Maina, the Head of Innovations at said that ensuring the informal sector ensures business continuity. “Every day, informal retailers are exposed to risks that could negatively impact their businesses from loss of inventory due to fire or theft or loss of profit due to hospitalization, Through this partnership, we have a bespoke insurance product that caters to all these risks under one cover, facilitating business continuity for the informal retailers, more so Dukas.”

With approximately 58 insurers and reinsurers currently in operation throughout the country, CIC, Jubilee, Britam, ICEA, Lion General, and APA Insurance dominate the market. Although general insurance dominates the industry, accounting for 60% of gross written premiums, the country has remained largely untapped over the years due to poverty, unemployment, neglect of the informal sector, complex insurance products, high costs of living and doing business, and ignorance.

However, while this is a very positive development, particularly for the Kenyan informal sector, the authorities must act now as a matter of necessity to improve the nation’s socioeconomic status by increasing literacy levels, providing employment, and creating an enabling environment for businesses to thrive to aid in raising insurance penetration levels, which have remained for a long time below global averages, indicating a large, uninsured populace.