NAIROBI, Kenya, Oct 13 – Small and medium-sized enterprises (SMEs) across East Africa are set to benefit from a new embedded insurance model launched through a partnership between Mastercard and insurtech firm Hillcroft (mTek).
The initiative integrates affordable insurance products directly into digital payment systems, enabling businesses and consumers to automatically access coverage at the point of transaction — whether paying for goods, services, or business supplies.
It is designed to boost financial protection and resilience, particularly among small enterprises that make up more than 90 percent of businesses in East Africa but remain largely uninsured.
“By bringing insurance directly into the payment experience, we are removing friction and making protective cover accessible to millions,” said Shehryar Ali, Senior Vice President and Country Manager for East Africa and the Indian Ocean Islands at Mastercard. “From consumers buying daily goods to farmers selling their harvest, this initiative is about building resilience and supporting economic growth across East Africa.”
The embedded model will form part of Mastercard’s consumer and SME card offerings, providing real-time access to insurance through familiar payment channels. Coverage options will protect against risks such as theft, fire, and business interruption, removing the need for lengthy applications and reducing costs.
Under the collaboration, Hillcroft (mTek) will provide API integration with underwriters and co-develop new digital insurance products with local insurers tailored to regional needs.
“Collaborating with Mastercard allows us to scale our technology and connect with millions through trusted payment channels,” said Bente Krogmann, CEO of Hillcroft (mTek). “Together, we aim to deliver solutions that are simple, affordable, and life-changing for underserved communities.”
With insurance penetration across the region still below 3 percent, the partnership represents a major step toward embedding insurance in Africa’s fast-growing digital economy — linking protection with everyday financial activity and helping SMEs build long-term resilience.
