NAIROBI, Kenya, Sep 2 – Nairobi accounted for 81.1 per cent of Kenya’s insurance premiums in 2025, taking the largest share of the country’s insurance business.
Data from the Insurance Regulatory Authority (IRA) shows that Mombasa followed with 3.3 per cent of premiums, while Kiambu accounted for 2.7 per cent and Nakuru 1.8 per cent.
Nairobi’s dominance reflects the concentration of major businesses, banks, financial institutions, government agencies and formal employers in the capital.
Nationally, Kenya’s insurance industry recorded strong growth in 2025, with gross direct premiums rising 16.5 per cent to Sh466.58 billion, from Sh400.59 billion in 2024.
Insurers collected nearly Sh66 billion more in premiums during the year, while insurance penetration rose to 2.63 per cent from 2.45 per cent, its highest level since 2016.
Insurance density, which measures the average premium paid per person, also increased to Sh8,675 from Sh7,573.
Long-term insurance was the biggest contributor to premium growth, with premiums rising 23.2 per cent to Sh236.29 billion.
The life fund carried forward grew by 22.9 per cent to Sh990.27 billion, while Deposit Administration and Personal Pensions stood at Sh81.22 billion and Sh24.54 billion respectively.
General insurance premiums increased by 9.37 per cent to Sh224.24 billion, with medical insurance remaining the largest class. Medical premiums rose 22.3 per cent to Sh93.20 billion.
Motor insurance also remained a major source of premiums, with private motor premiums reaching Sh32.82 billion and commercial motor premiums standing at Sh29.78 billion.
Microinsurance recorded the fastest growth, with premiums rising nearly tenfold to Sh2.17 billion from Sh234.23 million in 2024.
The growth in premiums was accompanied by higher claims payments. Long-term insurance claims and benefits rose 15.69 per cent to Sh122.81 billion, while claims under general and microinsurance increased 14.31 per cent to Sh104.47 billion.
The sector’s total assets increased 20.45 per cent to Sh1.51 trillion, while investments grew 18.87 per cent to Sh1.31 trillion.
Direct insurers recorded a combined profit of Sh22.37 billion, while reinsurers posted Sh5.28 billion, although profitability moderated from the previous year due to higher finance and service expenses.
