New KRA Law on Car Import Taxes: What Changes July 1, 2025
Starting July 1, 2025, the Kenya Revenue Authority (KRA) will implement a new law that significantly changes how import taxes on used vehicles are calculated. This update involves a revised Current Retail Selling Price (CRSP) schedule, which directly affects the taxable value of imported cars. The new CRSP aims to better reflect actual market prices, ensuring fair taxation and closing revenue gaps. However, it also means higher import taxes for many car buyers and importers in Kenya.
This article explains the new KRA law, its impact on car import taxes, and what you should do to prepare.
🔑 Key Takeaways
- New CRSP schedule takes effect July 1, 2025
- Import taxes will increase for many vehicle models, especially hybrids
- Maximum depreciation capped at 65% for vehicles up to 8 years old
- Some popular models may see tax increases up to 145%
- Importers must consult updated CRSP list before purchasing vehicles
- Proper car insurance becomes even more critical for protecting your investment
📋 Table of Contents
- What Is the New KRA Law About?
- How Does the New CRSP Affect Import Taxes?
- Why Did KRA Update the CRSP?
- Implications for Importers and Buyers
- How to Access and Use the New CRSP List
- Frequently Asked Questions
- Case Studies and Examples
- Tips for Importers
- Protect Your Investment with Insurance
- Conclusion
🏛️ What Is the New KRA Law About?
The Current Retail Selling Price (CRSP) is a valuation list used by KRA to determine the taxable value of imported vehicles. It sets benchmark prices for different car models and years, which customs officials use to calculate import duty, excise duty, VAT, and other taxes.
Previously, the CRSP was based on fixed retail prices that often did not match actual market values, leading to disputes and legal challenges. The new law introduces an updated CRSP schedule effective from July 1, 2025, replacing the old fixed prices with a more accurate list that reflects real market prices and exchange rates.
This change aims to:
- Align vehicle valuations with current market realities
- Address legal concerns over the previous valuation method
- Ensure consistent and fair taxation across all imported vehicles
💰 How Does the New CRSP Affect Import Taxes on Used Cars?
Import taxes in Kenya are calculated cumulatively based on the vehicle’s declared value or the CRSP, whichever is higher. The main tax components include:
| Tax Component | Rate | Description |
|---|---|---|
| Import Duty | 25-35% | Based on vehicle’s value |
| Excise Duty | 25-35% | Depends on engine size and type |
| Value Added Tax (VAT) | 16% | Fixed rate on cumulative value |
| Import Declaration Fee (IDF) | 3.5% | Typically 3.5% of vehicle value |
| Other Levies | Variable | Including Railway Development Levy |
With the new CRSP, the taxable value of many vehicles will increase, leading to higher import taxes. Some popular models like the Toyota Vitz Hybrid and Mazda CX-5 could see tax increases of up to 145%.
Additionally, the law enforces a maximum depreciation of 65% for vehicles up to 8 years old. This means that when calculating taxable value, the vehicle’s price cannot be depreciated beyond 35% of its original price, limiting how much importers can reduce their tax liability based on vehicle age.
🔍 Why Did KRA Update the CRSP?
Several reasons prompted the update:
Market Alignment
The previous CRSP list was outdated and did not reflect actual international prices, causing undervaluation or overvaluation.
Legal Compliance
Court rulings challenged the constitutionality of the old fixed prices, requiring revision.
Revenue Protection
The update helps close tax revenue gaps by ensuring vehicles are valued fairly.
Transparency
The new CRSP is based on thorough market research and stakeholder consultations, making it more transparent and defensible.
🔗 Related Insurance Resources
| Resource | Description | Link |
|---|---|---|
| Cheapest Car Insurance | Get third-party insurance from KSH 4,999/year | Learn More |
| CIC Easy Bima | Flexible monthly motor insurance options | Discover Options |
| Top Motor Insurance Companies | Best motor insurance providers in Kenya 2025 | View Rankings |
📊 What Does This Mean for Car Importers and Buyers in Kenya?
The new law brings several implications:
Higher Import Costs
Increased taxable values mean importers will pay more in duties and taxes, raising the overall cost of imported vehicles.
Model-Specific Impact
Some car models, especially hybrids and newer vehicles, will face steeper tax hikes.
Budget Adjustments
Buyers and importers need to factor in these higher taxes when planning purchases.
Market Changes
Increased costs may shift demand toward older or alternative vehicle models.
Compliance Importance
Accurate customs declarations aligned with the new CRSP are essential to avoid penalties or delays.
📋 How to Access and Use the New CRSP List
KRA has published the updated CRSP list on its official website. Importers and clearing agents should:
- Consult the CRSP list before purchasing vehicles abroad to estimate likely taxes
- Use the list to declare vehicle values accurately during customs clearance
- Verify exact model, variant, and year to find the correct CRSP value
- Utilize online calculators and tools offered by KRA or third parties to estimate import duties
Being proactive and informed will help avoid surprises and ensure smooth importation.
❓ Frequently Asked Questions (FAQs)
📈 Case Studies and Examples
🚗 Toyota Vitz Hybrid F
Previously taxed at a lower value, the new CRSP increases its taxable value significantly, resulting in an estimated tax increase of up to 145%. Importers will pay substantially more in duties and VAT.
🚙 Mazda CX-5 20S
The updated valuation reflects current market prices, increasing import taxes and potentially affecting resale prices.
These examples illustrate how the new CRSP impacts import costs and pricing strategies.
| Vehicle Model | Previous Tax Estimate | New Tax Estimate | Percentage Increase | Impact Level |
|---|---|---|---|---|
| Toyota Vitz Hybrid F | KSH 200,000 | KSH 490,000 | 145% | High |
| Mazda CX-5 20S | KSH 350,000 | KSH 525,000 | 50% | Medium |
| Toyota Fielder | KSH 180,000 | KSH 234,000 | 30% | Low |
| Nissan Note | KSH 160,000 | KSH 224,000 | 40% | Medium |
💡 Tips for Importers to Prepare for the New Tax Regime
- 📋Review the updated CRSP list carefully before purchasing vehicles
- 💰Adjust budgets and pricing strategies to accommodate higher taxes
- 🤝Work with experienced clearing agents knowledgeable about the new rules
- 🔄Consider alternative models or vehicle ages to optimize costs
- 📢Stay updated on KRA notices and regulatory changes
🛡️Protect Your Investment with Reliable Car Insurance
Importing a vehicle under the new KRA tax regime is just the first step. To safeguard your investment and comply with Kenyan law, securing comprehensive car insurance is essential. Whether you need cover for personal use, commercial purposes, or fleet management, we offer tailored insurance solutions designed to meet your unique needs.
Get peace of mind knowing you’re protected against accidents, theft, and unforeseen damages with competitive premiums and excellent customer support.
🎯 Conclusion
The new KRA law revising the Current Retail Selling Price for imported vehicles marks a major change in Kenya’s customs valuation and taxation system. While it promotes fairness and transparency, it also increases the cost of importing used cars, especially popular and hybrid models. Importers and buyers must
Mandatory Travel Health Insurance for Foreigners in Kenya: What You Need to Know in 2025
Kenya is set to introduce a mandatory travel health insurance requirement for foreigners staying in the country for less than 12 months. This new policy, enforced under the Social Health Authority (SHA), aims to ensure that all non-Kenyan residents have valid health insurance coverage during their stay. The move is part of Kenya’s broader strategy to enhance health insurance uptake, improve healthcare access, and increase revenue collection within the health sector.
This directive follows a series of high-level discussions between Kenya’s Ministry of Health and the Ministry of Interior and Coordination of National Government, reflecting President William Ruto’s commitment to achieving Universal Health Coverage (UHC) by expanding insurance coverage to all people within Kenya’s borders. The Social Health Authority, launched in October 2024, replaces the older National Health Insurance Fund (NHIF) framework and introduces a more inclusive and regulated system for health insurance in Kenya.
Key Takeaways
- All foreigners staying in Kenya for less than 12 months must register for travel health insurance under SHA
- The policy aims to improve healthcare access and boost health sector revenue
- Insurance covers medical emergencies, hospitalization, and COVID-19 treatment
- Failure to comply may result in entry denial or legal penalties
- Insurance costs vary by age, duration of stay, and coverage limits
Table of Contents
- What is Mandatory Travel Health Insurance for Foreigners in Kenya?
- Who Must Register Under the SHA?
- How Does the Registration Process Work?
- Why is Kenya Requiring Mandatory Travel Health Insurance for Foreigners?
- What Does Travel Health Insurance Cover in Kenya?
- How Much Does Mandatory Travel Health Insurance Cost in Kenya?
- What Happens If You Don’t Register Your Travel Health Insurance?
- How to Choose the Right Travel Health Insurance for Kenya
- Frequently Asked Questions
- Tips for a Smooth Registration and Stay in Kenya
- Conclusion
- Related Resources
What is Mandatory Travel Health Insurance for Foreigners in Kenya?
Mandatory travel health insurance for foreigners in Kenya refers to the legal requirement that all non-Kenyan residents staying in Kenya for less than 12 months must register and maintain valid travel health insurance under the SHA. This insurance covers medical expenses incurred during their stay, protecting both the individual and the Kenyan healthcare system.
The Social Health Authority (SHA) is the regulatory body responsible for overseeing this insurance scheme. It ensures that insurance providers meet quality standards and that foreigners comply with registration and coverage requirements. This policy is designed to safeguard visitors from unexpected medical costs while promoting the uptake of health insurance products tailored to short-term residents.
Who Must Register Under the SHA?
The mandatory registration applies to:
- Non-Kenyan residents who plan to stay in Kenya for less than 12 months. This includes tourists, business travelers, students, expatriates on short-term assignments, and other foreign nationals.
- The requirement excludes Kenyan citizens and possibly diplomats or government officials under specific exemptions (though official exemptions remain to be clarified by the SHA).
- Visitors staying longer than 12 months may be subject to different insurance or residency requirements, often involving more comprehensive health insurance coverage.
This broad scope ensures that the majority of foreign visitors and short-term residents are covered, reducing the burden on public health facilities and improving financial protection for both visitors and the healthcare system.
How Does the Registration Process Work?
The government is currently establishing an administrative framework to operationalize this policy. The registration process is expected to involve the following steps:
- Purchase a travel health insurance policy from an SHA-approved insurance provider. The Insurance Regulatory Authority (IRA) has compiled a list of licensed insurers authorized to offer these policies.
- Submit registration details to the Social Health Authority, either online or at designated offices, including proof of insurance and personal identification.
- Receive a registration confirmation or certificate, which may be required for immigration clearance or other official processes.
- Maintain valid coverage throughout the stay in Kenya, with renewal options available for extended visits.
Applicants will need to provide documents such as passports, visas, and insurance certificates. The government is working to streamline the process to avoid delays at entry points and ensure compliance without inconveniencing travelers.
Why is Kenya Requiring Mandatory Travel Health Insurance for Foreigners?
Several key reasons underpin this new requirement:
- Enhancing Insurance Uptake: Kenya aims to increase the number of insured individuals to support its Universal Health Coverage goals. Foreign visitors represent a significant uninsured population that can benefit from coverage.
- Improving Healthcare Access: With insurance, foreigners can access timely medical care without financial hardship, reducing the risk of unpaid medical bills and strain on public hospitals.
- Boosting Revenue Collection: The government expects that mandatory insurance will generate additional revenue for the healthcare sector, supporting infrastructure and service improvements.
- Aligning with Global Best Practices: Many countries, including Schengen states in Europe, require travelers to have valid travel health insurance. Kenya’s policy aligns it with these international standards, enhancing visitor safety and confidence.
What Does Travel Health Insurance Cover in Kenya?
Travel health insurance policies compliant with SHA requirements typically cover:
- Medical emergencies and hospitalisation: Including accidents, sudden illnesses, and urgent care.
- COVID-19 and infectious diseases: Testing, treatment, and quarantine costs related to pandemics.
- Repatriation and medical evacuation: Transport back to the home country or to specialized facilities.
- Outpatient and inpatient services: Doctor visits, diagnostic tests, surgeries, and medications.
- Exclusions: Routine check-ups, pre-existing conditions (depending on policy), cosmetic procedures, and non-medical expenses.
This comprehensive coverage ensures that foreigners can access essential healthcare services without incurring prohibitive costs during their stay.
How Much Does Mandatory Travel Health Insurance Cost in Kenya?
The cost of travel health insurance varies depending on several factors:
| Factor | Impact on Cost |
|---|---|
| Duration of stay | Longer stays generally cost more |
| Age of the insured | Older travelers may pay higher premiums |
| Coverage limits | Higher coverage limits increase premiums |
| Medical history | Pre-existing conditions may raise costs |
| Insurance provider | Prices vary between providers |
Typical premiums for short-term travel health insurance in Kenya start from a few thousand Kenyan shillings (Kshs 2,500 and above), making it affordable for most visitors.
Travel Insurance Options Comparison
| Features | Basic Plan | Standard Plan | Premium Plan |
|---|---|---|---|
| Starting Price | Kshs 2,000 | Kshs 3,500 | Kshs 5,000 |
| Medical Coverage | Up to $10,000 | Up to $50,000 | Up to $100,000 |
| Evacuation | |||
| Pre-existing Conditions | Limited | ||
| COVID-19 Coverage | Basic | Standard | Comprehensive |
| More Information | Learn More | Learn More | Learn More |
What Happens If You Don’t Register Your Travel Health Insurance?
Failure to comply with the mandatory travel health insurance requirement can lead to:
- Legal penalties: Fines or other sanctions as stipulated by Kenyan law.
- Denial of entry or visa issuance: Immigration authorities may refuse entry to travelers without valid insurance.
- Restricted access to healthcare: Without insurance, foreigners may face high out-of-pocket costs or be denied non-emergency medical services.
- Potential deportation: In extreme cases, non-compliance could result in removal from the country.
Therefore, registering and maintaining valid travel health insurance is crucial for all foreigners planning to visit or stay in Kenya for less than 12 months.
How to Choose the Right Travel Health Insurance for Kenya
When selecting a travel health insurance policy for Kenya, consider the following:
- Compliance with SHA regulations: Ensure the insurer is approved by the Insurance Regulatory Authority and the policy meets SHA standards.
- Coverage scope: Look for policies that cover emergencies, COVID-19, evacuation, and repatriation.
- Cost-effectiveness: Compare premiums, deductibles, and coverage limits.
- Claims process: Choose insurers with a reputation for fast and fair claims handling.
- Customer support: Availability of 24/7 assistance and multilingual support.
Many local and international insurers now offer SHA-compliant products tailored to Kenya’s requirements. Consulting with a trusted insurance broker or agency can help you find the best option.
Need Help Finding the Right Travel Insurance for Kenya?
Get expert advice and compare quotes from approved providers.
GET A QUOTE NOW REQUEST CONSULTATIONFrequently Asked Questions about Mandatory Travel Health Insurance for Foreigners in Kenya
Can I use my home country’s insurance policy?
Only if the policy is registered and approved under the SHA framework. Otherwise, you must purchase local or SHA-recognized insurance.
How do I prove my insurance is registered under SHA?
You will receive a registration certificate or digital confirmation that you can present at immigration or healthcare facilities.
What if my stay extends beyond 12 months?
You may need to transition to a different insurance scheme, possibly under Kenya’s broader health insurance programs.
Are tourists required to register?
Yes, all non-Kenyan residents staying less than 12 months, including tourists, must register.
Can I renew or extend my insurance while in Kenya?
Yes, most providers offer renewal options to cover extended stays.
Tips for a Smooth Registration and Stay in Kenya
- Prepare your documents before arrival, including passport, visa, and proof of insurance.
- Purchase insurance early to avoid delays at entry points.
- Keep digital and printed copies of your insurance certificate.
- Familiarize yourself with emergency contacts and SHA support channels.
- Consult with your insurance provider about coverage specifics and claims procedures.
Conclusion: Stay Protected and Compliant with Mandatory Travel Health Insurance in Kenya
Kenya’s new mandatory travel health insurance for foreigners policy marks a significant step toward universal health coverage and improved healthcare access for all within its borders. By requiring non-Kenyan residents staying less than 12 months to register their travel health insurance under the SHA, Kenya protects visitors from unexpected medical costs while strengthening its healthcare system.
Foreign visitors should prioritize obtaining SHA-compliant travel health insurance before arrival to ensure a hassle-free entry and stay. This policy not only safeguards your health but also contributes to Kenya’s vision of a healthier, more inclusive nation.
Related Resources
- Visit the Social Health Authority (SHA) official website for registration guidelines.
- Contact Step by Step Insurance for expert advice and assistance with travel health insurance.
- Read more about Kenya’s Universal Health Coverage initiatives and healthcare reforms.
By understanding and complying with Kenya’s mandatory travel health insurance requirements, foreigners can enjoy their stay with peace of mind, knowing they are protected and contributing to Kenya’s health sector sustainability.
More Resources on Travel Insurance in Kenya
External References
Old Mutual Elimika Education Plan – Everything You Need to Know About Securing Your Child’s Education
Planning for your child’s education is one of the most important financial decisions you’ll ever make. In Kenya, where the costs of quality schooling continue to rise, parents are increasingly seeking solutions that offer both disciplined savings and financial protection. The Old Mutual Elimika Education Plan is designed with these needs in mind, providing a structured way to save for your child’s future while ensuring their education remains uninterrupted, even if life takes an unexpected turn. Old Mutual, a trusted name in Kenya’s financial sector, brings decades of experience and reliability to this education insurance product, making it a top choice for families who want to secure their children’s academic journey.
Key Takeaways
- The Old Mutual Elimika Education Plan combines savings with life insurance protection
- Premiums start from as little as KShs 2,500 per month with flexible terms up to 21 years
- Benefits include staggered payouts at key education milestones and continued coverage if the policyholder passes away
- Step by Step Insurance acts as your intermediary, providing personalized guidance and support
- Education insurance offers advantages over traditional savings, including discipline, protection, and tax benefits
Table of Contents
- Understanding Education Insurance in Kenya
- Features of Old Mutual Elimika Education Plan
- Benefits of Old Mutual Elimika Education Plan
- How Step by Step Insurance Acts as Your Trusted Intermediary
- Comparing Old Mutual Elimika with Other Options
- Frequently Asked Questions
- Step-by-Step Guide to Applying
- Tips for Maximizing the Value
- Case Studies and Real-Life Scenarios
- Alternatives to Old Mutual Elimika
- Conclusion
Understanding Education Insurance in Kenya
Education insurance is more than just a savings plan—it’s a financial safety net. Unlike ordinary savings accounts, education insurance combines regular savings with life insurance, guaranteeing that your child’s school fees and educational needs are covered, no matter what happens to you as the policyholder. In Kenya, where inflation and rising tuition fees can make education planning challenging, education insurance policies like the Elimika Education Plan are invaluable. They ensure that funds are available for critical academic milestones, such as primary, secondary, or university education, even in the event of the parent’s death or disability.
Key benefits of education insurance:
- Provides guaranteed payouts for tuition and school expenses at various stages.
- Includes life cover, so premiums are waived and benefits paid if the insured passes away.
- Offers flexible payment options and can be tailored to your budget.
- Protects against inflation, ensuring your savings retain value over time.
- Some policies, including Elimika, offer tax-free benefits or tax relief on premiums.
Education insurance is ideal for any parent or guardian who wants to protect their child’s educational future and avoid the risk of interrupted schooling due to unforeseen circumstances.
Features of Old Mutual Elimika Education Plan
The Old Mutual Elimika Education Plan stands out for its flexibility, affordability, and comprehensive protection. Here’s what makes it unique:
- Affordable Premiums: Start saving from as little as KShs 2,500 or KShs 3,000 per month, making it accessible for most Kenyan families.
- Flexible Term: Choose a savings period of up to 21 years, allowing you to align the plan with your child’s education milestones—whether you’re planning for primary, secondary, or university fees.
- Staggered Payouts: Upon maturity, the plan pays out in staggered installments, so you receive funds at different stages of your child’s education, ensuring school fees are always covered when needed.
- Life Cover: The plan includes a life insurance component, so if the policyholder passes away during the savings term, the child’s education is still protected.
- Eligibility: Available to all lives eligible, subject to underwriting and age limits, and insurable interest in the nominated child.
- Premium Flexibility: You can adjust your premium and term to suit your financial situation.
- Maturity Benefit: At the end of the policy, you receive a lump sum or staggered payments to help cover education expenses.
| Feature | Details |
|---|---|
| Minimum Monthly Premium | KShs 2,500 or KShs 3,000 |
| Maximum Term | Up to 21 years |
| Payment Structure | Staggered payouts at key education stages |
| Life Cover | Included |
| Eligibility | Subject to underwriting and age limits |
| Flexibility | Adjustable premium and term |
This structure ensures that your savings grow over time and are available exactly when your child needs them most.
Benefits of Old Mutual Elimika Education Plan
Disciplined and Structured Saving:
The Elimika Plan encourages regular, structured savings, making it easier for parents to build up a substantial education fund over time. This disciplined approach is crucial in meeting the rising costs of education in Kenya.
Affordable and Accessible:
With low minimum premiums, the plan is within reach for most families, allowing more parents to start saving early and consistently.
Financial Security:
The life cover ensures that, in the event of the policyholder’s death, your child’s education is not disrupted. Premiums are waived, and the plan continues to provide the intended benefits, giving peace of mind to parents and guardians.
Flexibility:
You can choose the savings term and adjust your premium to match your child’s age and your financial goals. This makes the plan suitable for families saving for primary, secondary, or university education.
Peace of Mind:
Knowing that your child’s education is protected, no matter what happens, allows you to focus on supporting their dreams and aspirations.
Tax Benefits:
Premiums paid towards the Elimika Education Plan may be eligible for tax relief, making it a cost-effective way to save for education.
How Step by Step Insurance Acts as Your Trusted Intermediary for Old Mutual Elimika Education Plan
Why use Step by Step Insurance as your intermediary?
Step by Step Insurance is a leading education insurance agency in Kenya, partnering with top providers like Old Mutual to help parents find the best solutions for their children’s education. As your trusted intermediary, we make the process of securing the Elimika Education Plan simple and stress-free.
Our role includes:
- Personalized Consultation: We assess your family’s needs and recommend the right plan structure.
- Application Assistance: Our experts help you gather documents and complete the application accurately, speeding up approval.
- Policy Customization: We help you choose the most suitable term, premium, and payout structure for your child’s education milestones.
- Ongoing Support: From policy management to claims assistance, we remain your point of contact, liaising with Old Mutual on your behalf.
- Advocacy: If you ever face challenges, we advocate for you to ensure your needs are met.
- Education and Updates: We keep you informed about policy changes, new benefits, or updates that could affect your plan.
How to get started:
Contact Step by Step Insurance for a free consultation. Our team will guide you through every step, from needs assessment to policy activation, and provide continuous support throughout your education savings journey.
Related Articles
Comparing Old Mutual Elimika Education Plan with Other Education Insurance Options
With multiple education insurance products available in Kenya, it’s important to compare Elimika with other leading plans:
| Provider | Minimum Premium | Max Term | Payout Structure | Life Cover | Unique Feature |
|---|---|---|---|---|---|
| Old Mutual Elimika | KShs 2,500/3,000 | 21 yrs | Staggered at milestones | Yes | Longest term, staggered payouts |
| Britam Boresha Elimu | KShs 3,000 | 18 yrs | 3 lump sums at end | Yes | Premium holiday, 3 payouts |
| Jubilee Career Life Plus | KShs 3,000 | 20 yrs | Lump sum or annual | Yes | Multiple beneficiaries, bonuses |
| CIC Academia | KShs 3,000 | 18 yrs | Lump sum or annual | Yes | Waived premiums on demise |
Key similarities and differences:
- All plans offer life cover and flexible terms.
- Elimika stands out for its long savings term (up to 21 years) and staggered payouts, which align with key education milestones.
- Britam’s Boresha Elimu Plan offers a unique “premium holiday” feature in the last two years.
- Jubilee’s Career Life Plus allows for multiple beneficiaries and offers bonuses at maturity.
When to choose Elimika:
If you want the flexibility of up to 21 years of savings, staggered payouts for different education stages, and affordable entry premiums, Elimika is an excellent choice.
Frequently Asked Questions About Old Mutual Elimika Education Plan
Who is eligible for the Elimika Education Plan?
Any parent or guardian with an insurable interest in a child, subject to age and underwriting limits, can apply.
What happens if I miss a premium payment?
Old Mutual typically offers a grace period. If you miss payments beyond this, the policy may lapse, but you may be able to reinstate it by paying arrears.
Can I change my premium or policy term after starting?
Yes, you may adjust your premium or term, subject to Old Mutual’s terms and conditions.
What if the policyholder passes away during the term?
The life cover ensures that premiums are waived, and the plan continues, providing the intended education benefits to the child.
How are staggered payments structured?
Payouts are made at key milestones, such as entry to secondary school, high school, or university, ensuring funds are available when needed most.
Can I withdraw funds early if needed?
Early withdrawals may be possible, but could reduce your final benefits. It’s best to discuss this with your intermediary.
What documents are required to apply?
You’ll need your ID, child’s birth certificate, proof of income, and completed application forms.
Step-by-Step Guide to Applying for Old Mutual Elimika Education Plan
- Needs Assessment: Consult with Step by Step Insurance to determine your savings goals and the right term for your child’s education.
- Document Preparation: Gather your ID, child’s birth certificate, and proof of income.
- Application Completion: Complete the application with guidance from our experts.
- Submission and Review: We review and submit your application to Old Mutual, tracking progress for you.
- Policy Issuance: Once approved, you’ll receive your policy documents and payment schedule.
- Ongoing Support: Step by Step Insurance will help with any future policy changes or claims.
Tips for Maximizing the Value of Your Elimika Education Plan
- Start Early: The earlier you start, the more your savings will grow, and the easier it is to meet your goals.
- Choose the Right Term: Align your savings term with your child’s education milestones for maximum benefit.
- Manage Premiums Efficiently: Set up automatic payments to avoid missed premiums and lapses.
- Review Regularly: As your child grows, review your plan to ensure it still meets your needs.
Case Studies and Real-Life Scenarios
Scenario 1: Young Parent Starting Early
Sarah, age 28, starts an Elimika Plan for her 2-year-old son, saving KShs 3,000 per month. By the time her son is ready for secondary school, she receives the first payout, with further installments available for high school and university.
Scenario 2: Family Saving for Secondary and University
The Mwangi family wants to ensure their daughter’s transition from secondary to university is smooth. They choose a 15-year term, aligning payouts with these key stages.
Scenario 3: Guardian Seeking Flexible, Long-Term Savings
John, a guardian to his niece, wants a plan that grows over time and pays out at different stages. He selects the 21-year option, ensuring funds are available for every major educational milestone.
Alternatives to Old Mutual Elimika Education Plan
Other education insurance policies in Kenya:
- Britam Boresha Elimu Plan
- Jubilee Career Life Plus
- CIC Academia Policy
Direct savings and investment options:
- Money market funds
- Fixed deposits
- Education unit trusts
Pros and cons:
| Option | Pros | Cons |
|---|---|---|
| Education Insurance | Guaranteed benefits, life cover | Less flexible, early withdrawal penalties |
| Direct Savings | Flexible, potentially higher returns | No life cover, requires discipline |
Choose what best fits your family’s financial goals and risk tolerance.
Conclusion – Is Old Mutual Elimika Education Plan Right for You?
The Old Mutual Elimika Education Plan is a robust, flexible, and affordable way to secure your child’s educational future. With its long savings term, staggered payouts, and built-in life cover, it offers peace of mind and financial security for Kenyan families. Whether you’re saving for primary, secondary, or university education, Elimika can be tailored to your needs. If you value disciplined savings, protection against life’s uncertainties, and the guidance of a trusted intermediary like Step by Step Insurance, this plan is an excellent choice for your family.
Call to Action
Ready to secure your child’s future with the Old Mutual Elimika Education Plan?
Contact Step by Step Insurance today for a free consultation and expert guidance. Our team will help you compare options, customize your plan, and support you every step of the way.
GET QUOTE REQUEST CONSULTATIONExternal Resources
Top Money Market Funds in Kenya 2025 – Updated May 2025
In today’s dynamic financial landscape, Money Market Funds (MMFs) have become a popular choice for Kenyans seeking stable returns with minimal risk. They serve as an attractive alternative to traditional savings accounts, offering higher yields alongside excellent liquidity. This guide provides a comprehensive look at Kenya’s top Money Market Fund providers in 2025, based on the latest performance metrics as of May 7th, 2025.
Market Update – May 2025
Recent data shows Money Market Fund yields have experienced a slight decline across the industry since March 2025. Despite this trend, MMFs continue to outperform traditional savings accounts and remain competitive against inflation rates, currently at 4.1% as of March 2025.
Key Takeaway
MMFs continue to be a game-changer for both new and experienced investors, providing short-term security, higher returns than bank savings (averaging 11.02% before tax), and the flexibility of accessing your funds when needed. The current average after-tax return of 9.37% remains well above the inflation rate of 4.1%.
Table of Contents
Understanding Money Market Funds
Money Market Funds are relatively low-risk investment vehicles that focus on short-term, interest-bearing assets. Examples include:
- Treasury bills (T-bills)
- Fixed deposits
- Short-term bonds
- Commercial paper
- Corporate instruments
They’re ideal for investors aiming for:
- Capital preservation
- Regular monthly income
- Easy access to funds
- Returns above inflation rates
It’s worth noting that current Treasury Bill rates are at 8.4% (91-day), 8.6% (182-day), and 10.0% (364-day), with most Money Market Funds outperforming these government securities.
For a practical way to see potential returns, check out our Money Market Funds Calculator in Kenya .
Our Ranking Criteria
We evaluated each MMF on:
- Historical returns and performance
- Minimum investment requirements
- Accessibility and digital platforms
- Management fees and other costs
- Additional features and benefits
- Assets under management
- Customer service and withdrawal process
If you’re unsure about picking the right fund, consider reading how to choose the best money market fund in Kenya for more detailed insights.
Top Money Market Fund Providers in Kenya (May 2025)
Below are the top MMFs, arranged by current annual rate (highest to lowest). Note that these rates fluctuate daily as per fund managers and business daily. The data provided is as of May 7th, 2025.
| Provider | Annual Rate (%) | Net Return (%) | Features | Best For |
|---|---|---|---|---|
| Gulfcap Money Market Fund | 13.87% | 11.79% | Top performer, Daily interest accrual, consistent leadership position. | High-yield seekers with a high-risk tolerance |
| Cytonn Money Market Fund | 13.74% | 11.68% | Offers competitive returns, known for strong investment strategies. | Investors looking for reliable performance and solid reputation |
| Kuza Money Market Fund | 13.50% | 11.48% | Rising performer, stable returns and reliable fund management. | Investors seeking a balanced approach to risk and return |
| Orient Money Market Fund | 13.06% | 11.10% | Consistent yields, transparent fund operations. | Safety-conscious investors |
| Etica Money Market Fund | 13.01% | 11.06% | Consistently delivers strong returns with ethical investment focus. | Investors prioritizing consistent growth and stability |
| Gen Africa Money Market Fund | 12.90% | 10.97% | Consistent yields, transparent fund operations, improved performance. | Safety-conscious investors |
| Lofty Corban Money Market Fund | 12.89% | 10.96% | Solid performance track record. | Investors who appreciate fund consistency |
| Enwealth Money Market Fund | 12.33% | 10.48% | Competitive yields, transparent fund operations. | Safety-conscious investors |
| Old Mutual Money Market Fund | 12.21% | 10.38% | Wide range of investment options; well-regulated, provides digital access, collateral loan facility and flexible contributions. Offers zero or low entry fees and low risk profile. | New investors, min KES 1,000 |
| Britam Money Market Fund | 12.17% | 10.34% | Seamless mobile integration, quick withdrawals, user-friendly platform. Daily compounding. | Mobile-first users, min KES 1,000 |
| Madison Money Market Fund | 11.81% | 10.04% | Known for strong track record with transparent reporting. Offers professional oversight and diversified portfolio. | Return-focused, min KES 5,000 |
| ArvoCap Money Market Fund | 11.61% | 9.87% | Strong performance, reputable fund manager, good risk management. | Investors seeking steady growth with managed risk |
| Apollo Money Market Fund | 11.61% | 9.87% | Offers competitive returns and is known for its brand presence and digital integration. | Mid-range investors, min KES 3,000 |
| Nabo Money Market Fund | 11.39% | 9.68% | Known for stable returns and reliable fund management. | Investors seeking a balanced approach to risk and return |
| Jubilee Money Market Fund | 11.38% | 9.67% | Offers potential tax-efficient structures and invests in high-quality instruments. Known for conservative approach and strong brand. | Trusted provider, min KES 5,000 |
| Faulu Money Market Fund | 11.32% | 9.62% | Solid performance track record and provides a good option for investors. | Investors who appreciate fund consistency |
| Sanlam Money Market Fund | 11.23% | 9.55% | Competitive returns, Strong institutional backing and robust risk management; Established presence. | Balance-seeking investors, min KES 2,500 |
| Dry Associates MMF | 11.21% | 9.53% | Offers competitive yields and is known for its transparent fund operations. | Safety-conscious investors |
| CIC Money Market Fund | 10.47% | 8.90% | Strong track record with professional management, transparent reporting, and well-diversified portfolio. | Return-focused investors, min KES 5,000 |
| Co-op Money Market Fund | 10.37% | 8.81% | Consistent yields, transparent fund operations. | Safety-conscious investors |
| KCB Money Market Fund | 10.21% | 8.68% | Known for transparency. | Investors seeking stability and a trusted financial institution |
| ICEA Money Market Fund | 10.20% | 8.67% | Offers the lowest minimum investment (KES 500) and provides an advanced digital platform with goal-tracking features. | First-time investors, min KES 500 |
| Mali Money Market Fund | 10.04% | 8.53% | Steady performance, transparent fund operations. | Conservative investors looking for stable returns |
| Gencap Money Market Fund | 9.95% | 8.46% | Consistent yields, transparent fund operations. | Safety-conscious investors |
| Absa Money Market Fund | 9.70% | 8.25% | Competitive yields, transparent fund operations. | Safety-conscious investors |
| Mayfair Money Market Fund | 9.43% | 8.02% | Offers unique investment options and is tailored for specific financial goals. | Goal-oriented investors who appreciate personalized solutions |
| African Alliance MMF | 8.48% | 7.21% | Provides a balance between risk and return with reliable performance. | Risk-averse investors who seek steady growth |
| Stanbic Money Market Fund | 7.70% | 6.55% | Stable and reliable, strong risk management framework. | Investors prioritizing capital preservation |
| Ziidi Money Market Fund | 7.28% | 6.19% | Convenient access through mobile platform. | Tech-savvy investors who value ease of use |
| Equity Money Market Fund | 5.47% | 4.65% | Stable and low-risk, part of a well-established banking group. | Conservative investors looking for a secure investment |
Market Average: 11.02% (Before tax), 9.37% (After tax)
Key Market Insights
Kenya’s Money Market Fund rates now range from 5.47% to 13.87% for local currency (KES) offerings, reflecting a modest decline since earlier in 2025. Some providers also feature USD-denominated options, though these typically yield lower percentages.
- Gulfcap Money Market Fund continues to offer the highest rate, maintaining its leadership position.
- Kuza Money Market Fund has shown significant improvement, rising to the third position.
- The average market return stands at 11.02% (before tax) and 9.37% (after tax).
- All funds significantly outperform the current inflation rate of 4.1% (March 2025).
- The spread between top performers and lowest performers has narrowed slightly compared to earlier in the year.
When choosing a Money Market Fund, consider your investment goals, preferred currency, digital requirements, and minimum deposit. Each provider has unique strengths, so align your choice with your personal objectives and comfort level.
For more insights on Kenya’s growing MMF sector, read Money Market Funds Boom in Kenya: Investors Earning Up to 16% .
Why These Rankings Matter
Investment Accessibility
- Lower minimum investments make certain funds more approachable.
- Digital platforms simplify deposits, tracking, and withdrawals.
Performance Metrics
- Consistent returns above benchmarks indicate good management.
- Historical data offers insights into fund stability.
Customer Experience
- Efficient withdrawal processes matter for liquidity.
- Strong customer service supports smoother operations.
Value-Added Services
- Additional features like loan collateral, mobile apps, or multiple currency options can enhance convenience.
Investment Strategy Recommendations
For New Investors
- Consider Old Mutual or ICEA for low entry barriers.
- Automate monthly contributions and use digital platforms for easy management.
- Start with established providers that offer good educational resources.
For Experienced Investors
- Gulfcap, Cytonn and Kuza stand out for high returns in the current market.
- Diversify across multiple providers to balance risk, especially in a declining rate environment.
- Look into potential tax benefits (e.g., Jubilee).
For Institutional Investors
- Gulfcap and Cytonn for robust risk management, strong institutional backing and consistent yield.
- Diversify across multiple providers to balance risk.
- Consider Old Mutual for corporate solutions and comprehensive reporting.
If you’d like to learn about newer entrants like Safaricom’s fund, see how to register for Safaricom’s Ziidi Money Market Fund .
Factors to Consider When Choosing a Money Market Fund
Performance Metrics
- Historical returns and consistency
- Benchmark comparisons (T-bills and inflation)
- Risk-adjusted performance
Accessibility
- Minimum investment amounts
- Flexible top-up options
- Withdrawal process and digital platform availability
Costs and Fees
- Management fees
- Entry or exit fees
- Potential hidden charges
Fund Management
- Experience of fund managers
- Risk management practices
- Regulatory compliance and corporate governance
Investment Strategy Tips
Short-Term Goals
- Emergency funds
- School fees planning
- Working capital for a business
- Home improvement projects
Risk Management
- Diversify across different providers
- Monitor returns regularly – especially important in the current declining rate environment
- Stay aware of changing market conditions
- Maintain adequate liquidity
Market Outlook 2025
As we move through 2025, several factors are influencing the Money Market Fund landscape in Kenya:
- Interest Rate Environment: The Central Bank Rate (CBR) remains at 10.00% as of April 2025, providing a stable benchmark for MMF returns.
- Inflation Trends: With inflation at 4.1% (March 2025), MMFs continue to provide substantial real returns.
- Market Consolidation: We’re seeing increased competition among fund managers, benefiting investors through enhanced services and features.
- Digital Transformation: More providers are improving their mobile and online platforms to enhance accessibility and user experience.
- Yield Compression: The slight decline in rates across all providers suggests a maturing market with potential for further stabilization.
Despite the recent modest decline in yields, Money Market Funds remain an attractive option for both short and medium-term investment goals in the Kenyan market.
Conclusion
Kenya’s Highest Paying Money Market Fund in 2025: Gulfcap Money Market Fund
For Kenyan investors seeking a safe, liquid, and high-yield investment vehicle in 2025, the Gulfcap Money Market Fund stands out as the top performer. According to the latest data published on April 22, 2025, Gulfcap leads the pack with an impressive annualized net return of 11.79%, after management fees and withholding tax. This makes it the highest paying money market fund in Kenya, offering investors an excellent opportunity to grow their savings with minimal risk.
Key Takeaways
- Gulfcap Money Market Fund offers 11.79% annual returns, the highest in Kenya
- Low risk profile with high liquidity (access funds within 24-48 hours)
- Significantly outperforms treasury bills and average money market funds
- Managed by experienced professionals with rigorous credit analysis
- Accessible to both individual and institutional investors
Table of Contents
What is a Money Market Fund?
A money market fund (MMF) is a type of mutual fund that invests in short-term, highly liquid, and low-risk financial instruments such as government treasury bills, commercial paper, and corporate bonds. MMFs are designed to provide investors with steady income, capital preservation, and easy access to their funds, making them ideal for conservative investors or those needing short-term parking of cash.
Why Gulfcap Money Market Fund is the Best Choice in 2025
1. Superior Returns
Gulfcap Money Market Fund offers the highest net return among its peers, with an annualized yield of 11.79%. This return significantly outperforms the average money market fund return of 9.67% and beats the yields on government treasury bills, which range between 7.2% and 8.6% depending on maturity.
This high yield is particularly attractive in an environment where inflation is currently at 3.6% (March 2025), ensuring that investors’ returns not only preserve but also grow their purchasing power.
2. Low Risk and High Liquidity
The fund invests primarily in short-term, high-quality securities, which minimizes credit risk and interest rate volatility. Investors can access their funds quickly, usually within 24 to 48 hours, making Gulfcap an excellent option for emergency funds or short-term financial goals.
3. Professional Fund Management
Gulfcap is managed by experienced professionals who actively monitor market conditions to optimize returns while maintaining safety. The fund’s management team applies rigorous credit analysis and portfolio diversification to protect investors’ capital.
4. Accessibility
With a relatively low minimum investment, the fund is accessible to a broad range of investors, from individuals to institutions. The subscription and redemption processes are straightforward, often facilitated through digital platforms, enhancing convenience.
How Does Gulfcap Compare to Other Investment Options?
| Investment Type | Annual Net Return (%) | Risk Level | Liquidity |
|---|---|---|---|
| Gulfcap Money Market Fund | 11.79 | Low | High (24-48 hours) |
| Average Money Market Fund | 9.67 | Low | High |
| 91-Day Treasury Bill | 7.2 | Very Low | Depends on maturity |
| 364-Day Treasury Bill | 8.6 | Very Low | Depends on maturity |
| Bank Fixed Deposits | 7-9 | Low | Locked term |
| Equities (Stocks) | Variable | High | Variable |
Gulfcap’s returns provide a compelling alternative to government securities and bank deposits, especially for investors prioritizing liquidity and capital safety.
How to Invest in Gulfcap Money Market Fund
- Open an Account: Visit the fund manager’s website or authorized agent to open an investment account.
- Submit KYC Documentation: Provide identification documents such as a national ID or passport.
- Deposit Funds: Transfer your investment amount via mobile money (e.g., M-Pesa), bank transfer, or other accepted methods.
- Start Earning: Your funds will be pooled with other investors and professionally managed to generate returns.
- Monitor Your Investment: Access online portals or receive periodic statements to track your earnings.
Who Should Consider Gulfcap Money Market Fund?
- Conservative Investors: Those seeking stable returns with minimal risk.
- Short-Term Savers: Individuals or businesses needing quick access to funds.
- Emergency Funds: Investors wanting liquidity in case of unforeseen expenses.
- New Investors: People starting their investment journey with low-risk options.
- Institutional Investors: Companies and organizations looking for safe cash management.
Final Thoughts
In 2025, the Gulfcap Money Market Fund offers Kenyan investors an outstanding opportunity to earn high, stable returns with the flexibility to access their funds quickly. Its market-leading net return of 11.79% makes it the top choice among money market funds, outperforming government securities and traditional bank products.
Whether you are building an emergency fund, saving for short-term goals, or seeking a low-risk investment, Gulfcap provides a reliable and rewarding avenue to grow your money safely.
Related Resources
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CS Aden Duale Urges Kenyans to Join the SHA Despite Concerns Over Implementation Challenges
Kenya’s Health Cabinet Secretary, Aden Duale, has strongly urged all Kenyans to enroll in the newly established Social Health Alliance (SHA) under the government’s Universal Health Coverage (UHC) program, dismissing critics who have raised concerns about the initiative. His call comes amid ongoing nationwide efforts to expand equitable access to quality healthcare and reduce financial barriers for millions of citizens.
Key Takeaways
- Kenya’s Social Health Alliance (SHA) is the new social health insurance scheme under Universal Health Coverage (UHC).
- Over 17.8 million Kenyans are registered with SHA as of early 2025.
- Health Cabinet Secretary Aden Duale urges all Kenyans to enroll, dismissing critics as growing pains.
- SHA replaces the old NHIF with three funds focusing on primary care, social health insurance, and critical illness.
- Innovations include biometric enrollment, digital claims processing, and a Health Provider Portal.
- Challenges exist but are being addressed through reforms and partnerships with counties and providers.
- The government aims for 80% health insurance coverage by 2025 and universal coverage by 2035.
Table of Contents
The Social Health Alliance and UHC Progress
The SHA, launched as part of Kenya’s ambitious UHC reforms, replaces the older National Health Insurance Fund (NHIF) system with a more comprehensive and efficient social health insurance framework. The SHA operates through three specialized funds: the Primary Healthcare Fund (PHCF), the Social Health Insurance Fund (SHIF), and the Emergency, Chronic, and Critical Illness Fund (ECCIF). Together, these funds aim to cover promotive, preventive, curative, and critical care services for all Kenyans.
As of January 2025, over 17.8 million Kenyans have registered with SHA, including 13.2 million new members and 4.6 million who transitioned from NHIF. This rapid uptake demonstrates growing public acceptance of the program despite some operational challenges.
Cabinet Secretary Aden Duale’s Position
Speaking publicly, CS Aden Duale emphasized that the SHA is a transformative step toward achieving UHC, a flagship priority of the Kenya Kwanza administration aligned with the country’s Vision 2030 and Sustainable Development Goals. He acknowledged that while the program has faced some technical and service delivery issues, these are “growing pains” typical of large-scale reforms and do not undermine the scheme’s long-term benefits.
Duale dismissed critics who question the SHA’s viability, stating that the old NHIF system was collapsing after 60 years of operation and that the new SHA model is designed to be more sustainable, transparent, and inclusive. He urged Kenyans to embrace the scheme to ensure they can access affordable and quality healthcare without facing financial hardship.
Key Features and Innovations of SHA
The SHA incorporates several innovations to improve healthcare delivery and user experience:
Digital Enrollment and Biometric Identification
SHA uses biometric data linked to the National Registration Bureau to ensure accurate member identification and reduce fraud.
Electronic Claims Processing and AI-Based Fraud Detection
These technologies accelerate claims settlement and protect the scheme’s financial integrity.
Health Information Exchange System
Over 8,500 health facilities have enrolled in the Health Provider Portal, facilitating seamless data sharing and improved decision-making.
Focus on Primary Healthcare
The PHCF prioritizes promotive and preventive services, community-centered care, and increased immunization coverage, which reached 93% for fully immunized children by October 2024.
Comprehensive Coverage
The three funds collectively cover outpatient visits, inpatient admissions, and critical illness care, with monthly outpatient visits averaging 4.6 million.
Addressing Challenges and Public Concerns
While the SHA has faced challenges such as system downtimes and some providers failing to meet service expectations, government officials maintain that these issues are being addressed through continuous reforms and stakeholder engagement. Principal Secretary for Public Health Mary Muthoni highlighted that restructuring NHIF into three distinct funds was necessary to build a stronger, more responsive health insurance system.
The Ministry of Health and SHA leadership continue to engage with counties and healthcare providers to expand service availability and improve quality. Forty-five counties have signed Implementation Partner Agreements to support UHC rollout, with 35 counties requisitioning services for nearly 600 health facilities.
The Path Forward
The government’s multi-pronged approach to UHC includes strengthening healthcare financing, improving service delivery, investing in human resources, and leveraging digital health solutions. The aim is to increase health insurance coverage from about 20% in 2019 to 80% by 2025 and achieve universal coverage by 2035.
CS Aden Duale’s call for enrollment underscores the critical role of citizen participation in realizing these goals. By joining SHA, Kenyans can protect themselves and their families against catastrophic health expenses while contributing to a sustainable healthcare system that leaves no one behind.
Useful Resources
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Bancassurance Market Growth in Kenya: A Local Perspective on a Global Trend
Kenya’s bancassurance market is mirroring global growth trends, with the sector expanding rapidly and playing a pivotal role in deepening insurance penetration across the country. While the global bancassurance market is projected to reach a premium volume of $2.4 trillion by 2025, growing at an annual rate of 5.5%, Kenya’s own bancassurance sector has demonstrated remarkable momentum in recent years.
Key Takeaways
- Bancassurance premiums in Kenya grew by 79.4% over five years (2019-2023)
- Market share increased from 8.4% to 10% of total insurance premiums
- Banking network reach, SME segment focus, digital transformation, and regulatory support are driving growth
- Despite growth, overall insurance penetration remains below 3%, indicating significant potential
Table of Contents
Kenya’s Bancassurance Performance
Gross written premiums from bancassurance channels in Kenya surged from KES 19.5 billion in 2019 to KES 35 billion in 2023, representing a 79.4% growth over five years.
The market share of bancassurance in total insurance premiums increased from 8.4% to 10% during the same period, underscoring its growing importance in the insurance landscape.
In 2023, bancassurance accounted for nearly 10% of all insurance premiums written in Kenya, with non-life premiums reaching KES 18.5 billion and life premiums at KES 16.5 billion.
| Metric | 2019 | 2023 | Change |
|---|---|---|---|
| Gross Written Premiums | KES 19.5 billion | KES 35 billion | +79.4% |
| Market Share | 8.4% | 10.0% | +1.6% |
| Non-life Premiums (2023) | – | KES 18.5 billion | – |
| Life Premiums (2023) | – | KES 16.5 billion | – |
Key Drivers of Growth
Banking Network Reach
Kenya’s banking sector, with over 40 licensed commercial banks and more than 1,500 branches nationwide, provides an extensive distribution network for insurance products, making bancassurance a natural fit for expanding access.
SME Segment
Small and medium-sized enterprises (SMEs) are emerging as a key growth segment, with tailored insurance solutions distributed through banks helping to address the unique risks faced by these businesses.
Digital Transformation
The adoption of digital platforms and data-driven solutions is streamlining product offerings, improving customer experience, and driving further uptake of bancassurance products.
Regulatory Support
High compliance rates (over 90%) among bancassurance agencies and ongoing engagement with regulators are fostering a transparent and trustworthy environment, which is essential for sustained growth.
Challenges and Opportunities
Penetration Remains Low
Despite robust growth, insurance penetration in Kenya remains below 3%, indicating significant untapped potential for bancassurance to reach new customer segments.
Claims and Loss Ratios
As premiums have grown, so have claims, with incurred losses rising from KES 6.5 billion to KES 14 billion between 2019 and 2023. Non-life loss ratios increased from 43.9% to 52%, though still better than the industry average of 67%.
Market Concentration
Nine out of 24 licensed bancassurance agencies contributed over 83% of the gross written premium, suggesting room for more players to innovate and compete.
Looking Ahead
The outlook for Kenya’s bancassurance market is positive, with continued growth expected as banks and insurers deepen collaboration, digital solutions mature, and regulatory frameworks evolve to support innovation. As the global market surges toward the $2.4 trillion mark, Kenya’s experience demonstrates how local adaptation of global trends can drive both financial inclusion and sectoral growth.
In summary, Kenya’s bancassurance market is a dynamic and growing segment, well-positioned to play a central role in the country’s evolving financial services ecosystem, and to contribute meaningfully to the broader global expansion of bancassurance.
Related Resources
Source: AKI Releases State of the Bancassurance Market in Kenya 2024
Data Protection in Kenya: Insurance Sector Analysis
Kenya has emerged as a regional leader in data protection, particularly within the insurance sector, thanks to its robust legal framework and active regulatory oversight. The enactment of the Data Protection Act (DPA) in 2019 marked a significant milestone, positioning Kenya ahead of many East African countries in safeguarding personal data processed by private sector entities, including insurance companies. However, despite these advancements, state agencies remain a notable weak link in fully securing citizens’ data, exposing gaps that require urgent attention.
Key Takeaways
- Kenya’s Data Protection Act 2019 establishes a comprehensive framework for safeguarding personal data
- The insurance sector has demonstrated strong compliance with data protection regulations
- State agencies lag behind the private sector in implementing data protection measures
- Public-private gap in data protection compliance poses risks to citizens’ privacy
- Capacity building and infrastructure investment are needed to strengthen public sector compliance
Table of Contents
Kenya’s Data Protection Legal Framework and Insurance Sector Compliance
The Kenyan Data Protection Act, which came into effect on November 25, 2019, governs the processing of personal data-defined as information relating to an identified or identifiable individual. The Act established the Office of the Data Protection Commissioner (ODPC) to oversee enforcement and compliance. This office is empowered to conduct inspections, audits, and coordinate data protection impact assessments across sectors.
In the insurance industry, personal data is critical to underwriting and risk assessment. The DPA restricts data processing to lawful bases, such as obtaining explicit consent or legal authorization, and mandates that only necessary data be collected and processed. Insurance companies, brokers, and intermediaries are classified as data controllers or processors and must ensure compliance with the Act’s provisions, including safeguarding data against misuse or unauthorized access.
The Insurance Regulatory Authority (IRA) supplements the DPA with sector-specific guidelines, such as the Market Conduct Guidelines for Insurers and Intermediaries, which emphasize data privacy and protection. These regulations require insurance firms to implement robust data governance frameworks, ensure transparency with data subjects, and restrict cross-border data transfers unless adequate safeguards are in place. If you’re interested in how this affects health insurance, check out our guide on how to register for SHA in Kenya.
Private Sector Compliance: A Success Story
Kenya’s private sector, especially insurance companies, has made significant strides in aligning with data protection requirements. Many firms have registered with the ODPC, adopted data protection policies, and invested in staff training and technological safeguards. The ODPC’s Compliance Directorate actively monitors these entities through audits and impact assessments, fostering a culture of accountability.
This compliance has been driven not only by legal obligations but also by the recognition that data privacy is essential for maintaining customer trust in an increasingly digital insurance market. The sector’s proactive approach contrasts with many regional peers, placing Kenya at the forefront of data protection in East Africa. For those looking to invest securely, our article on top money market funds in Kenya for 2025 provides valuable insights.
Leading Insurance Companies and Data Protection
Many of Kenya’s top 10 insurance companies have implemented comprehensive data protection measures, setting industry standards for handling sensitive customer information. These practices not only ensure regulatory compliance but also build trust with policyholders concerned about their personal data security.
| Useful Resources | Description |
|---|---|
| SHA Registration Guide | Complete guide to registering for Social Health Authority in Kenya |
| SHA Packages Guide | Detailed breakdown of available SHA packages and benefits |
| Afya Yangu Registration | Step-by-step guide for Afya Yangu platform registration |
| Money Market Funds Calculator | Tool to calculate potential returns on money market investments |
| Insurance Products | Overview of available insurance products in Kenya |
| SHA FAQs | Answers to common questions about Social Health Authority |
The Weak Link: State Agencies and Public Sector Challenges
Despite private sector progress, state agencies remain a critical vulnerability in Kenya’s data protection landscape. Many government departments and public institutions are yet to fully implement the DPA’s requirements. Challenges include inadequate infrastructure, limited capacity, and insufficient awareness of data protection obligations among public officers.
The government’s digitization initiatives, such as the Integrated Population Registration Services (IPRS) and biometric databases managed by agencies like the Independent Electoral and Boundaries Commission (IEBC), have centralized vast amounts of personal data. However, concerns persist about the security and privacy of this data, given the weak enforcement of data protection standards in the public sector.
Reports and studies have highlighted instances of data breaches, unauthorized data sharing, and lack of transparency in how citizens’ data is used by state agencies. This situation undermines public confidence and exposes individuals to risks such as identity theft, discrimination, and privacy violations. Recent news has even highlighted conflicts between TSC and SHA over teachers’ health coverage, further complicating the data protection landscape.
Bridging the Gap: Recommendations and the Way Forward
To address these challenges, experts advocate for:
Strategic Approaches to Enhance Data Protection
- Capacity Building: Training government officials on data protection principles and best practices to enhance compliance.
- Infrastructure Investment: Upgrading IT systems in public agencies to ensure secure data storage and processing.
- Public Awareness: Educating citizens on their data privacy rights and mechanisms to report violations.
- Stronger Enforcement: Empowering the ODPC to conduct more rigorous audits and impose sanctions on non-compliant state entities.
- Policy Integration: Embedding data protection requirements into all government digitalization projects from inception.
The establishment of a National Data Literacy Training and Capacity Building Framework (NADACA) has been proposed to systematically enhance data governance skills across sectors, including public institutions. For individuals concerned about healthcare data protection, our FAQ on Social Health Authority addresses many common concerns.
Conclusion
Kenya’s leadership in data protection within the insurance industry reflects a mature regulatory environment and a commitment by private entities to uphold privacy rights. However, the full promise of data protection for Kenyan citizens can only be realized if state agencies also strengthen their compliance and safeguard personal data effectively. Closing this gap is essential for protecting citizens’ privacy, enhancing trust in public institutions, and supporting Kenya’s broader digital economy ambitions.
Summary
- Kenya’s Data Protection Act 2019 and the ODPC provide a strong regulatory framework, especially impacting the insurance sector.
- Private sector data processors, including insurance companies, largely comply with data protection laws, ensuring customer data privacy.
- State agencies lag behind in data protection compliance, posing risks to citizens’ personal information.
- Government digitization projects centralize large data sets but face challenges in securing data adequately.
- Capacity building, infrastructure upgrades, public education, and stronger enforcement are critical to improving public sector data protection.
- Kenya leads East Africa in data protection, but bridging public-private gaps is vital for comprehensive citizen data security.
For more information on financial services in Kenya, check out our guide to the best money market funds or use our money market funds calculator to plan your investments.
TSC Seeking Additional Funding for Teacher Health Cover
The Teachers Service Commission (TSC) in Kenya is actively seeking additional funding to enroll over 360,000 teachers into the government’s new medical insurance scheme, amid ongoing challenges and debates over the best way to provide comprehensive health coverage for educators nationwide.
Key Takeaways
- TSC is seeking funds to enroll 360,000+ teachers into the SHA health scheme
- Teachers currently have private coverage through Minet Kenya but face access challenges
- SHA declined mass enrollment citing infrastructure limitations and requesting Ksh 37 billion
- The government confirms teachers’ eligibility under SHA’s three main funds
- Resolution is crucial for improving healthcare access for Kenya’s educators
Table of Contents
Background: Current Medical Insurance for Teachers
Currently, all teachers in Kenya are eligible for coverage under the Social Health Authority (SHA), the government-backed health insurance scheme that covers all Kenyan workers contributing 2.75% of their salaries. The SHA benefits package includes access to three key funds: the Primary Healthcare Fund (PHC), the Social Health Insurance Fund (SHIF), and the Emergency, Critical and Chronic Illness Fund (ECCIF). Teachers and their dependents are entitled to these benefits just like other public servants and informal sector workers.
However, teachers do not receive special treatment under SHA except that the Teachers Service Commission has, since 2015, contracted a private insurance consortium through the broker Minet Kenya to provide a superior medical cover. This private scheme, managed by Medical Administrator Kenya Limited (MAKL), is financed by deducting teachers’ medical allowances and statutory contributions to purchase enhanced benefits beyond what SHA offers.
Challenges and the Push for Enrollment in SHA
Despite the existing private cover, many teachers have faced difficulties accessing timely and quality healthcare. Complaints include delays in payments, high pre-authorisation requirements, drug shortages, and outright denial of services in some hospitals, especially those affiliated with the Rural-Urban and Private Hospitals Association (RUPHA), which suspended services for MAKL patients including teachers.
In early 2025, TSC CEO Nancy Macharia revealed to the National Assembly Education Committee that efforts to onboard teachers en masse into SHA had failed. SHA reportedly declined to enroll over 360,000 teachers citing insufficient nationwide infrastructure to support such a large group and demanding Ksh 37 billion, a figure TSC considered too high compared to the Ksh 20 billion allocated for the current scheme.
This stalemate has caused frustration among teachers and education stakeholders, who continue to suffer from limited access to medical services despite the costly private insurance contract with Minet.
SHA’s Position and Call for Change
The Social Health Authority has urged TSC to terminate its contract with Minet Kenya and instead enroll teachers under the Public Officers Medical Scheme Fund, which is part of SHA’s broader health insurance framework. SHA emphasizes that while employers like TSC can provide complementary private insurance for additional benefits, the core coverage should be under the public scheme to ensure wider access and efficiency.
SHA currently covers over 21.6 million Kenyans and has partnered with more than 8,000 healthcare facilities nationwide, aiming to improve service accessibility. The Authority argues that enrolling teachers into this system would not only enhance healthcare access but also reduce costs for TSC.
Government Clarifications and Future Prospects
Health Cabinet Secretary Aden Duale confirmed that all teachers and their dependents are eligible for medical care under SHA’s three main funds and that TSC can still offer complementary insurance for extra benefits through private underwriters. He clarified that SHA does not manage TSC’s private medical cover, which remains under the Minet contract.
Meanwhile, TSC is reportedly seeking additional funding to facilitate the enrollment of all teachers into the government scheme, aiming to resolve the current impasse and improve healthcare delivery for educators. The Commission has also invited tenders for medical insurance cover for its commissioners and secretariat staff for the 2024/2025 period, signaling ongoing efforts to secure comprehensive health benefits for its workforce.
External Coverage
For more information on this issue, you can read Standard Media’s coverage of the TSC-SHA clash over teachers’ health cover and the limited access to services.
Conclusion
The medical insurance landscape for Kenyan teachers in 2025 is at a crossroads. While teachers are entitled to government-backed health coverage under SHA, infrastructural limitations and cost concerns have delayed full enrollment of over 360,000 teachers into the scheme. The Teachers Service Commission is pushing for additional funding to integrate teachers into the public health insurance system, which promises broader access and potentially better service delivery. Meanwhile, SHA encourages TSC to drop costly private insurance arrangements in favor of public schemes that cover millions of Kenyans nationwide.
Resolving these challenges is critical to ensuring that Kenya’s educators receive timely, affordable, and quality medical care, reflecting their vital role in the country’s development.
Summary
- Over 360,000 Kenyan teachers await enrollment into the government’s medical insurance scheme under SHA.
- Teachers currently have private cover via Minet Kenya, funded by their medical allowances and statutory deductions, but face service access challenges.
- SHA declined to enroll teachers citing insufficient infrastructure and high costs (Ksh 37 billion).
- SHA urges TSC to drop Minet and enroll teachers under the Public Officers Medical Scheme Fund.
- Health CS Aden Duale confirmed teachers’ eligibility under SHA’s three main funds and the possibility of complementary private insurance.
- TSC seeks additional funding and continues tendering for medical insurance for its staff.
- The resolution of this issue is crucial for improved healthcare access for Kenyan teachers.
- This ongoing debate highlights the complexities of providing equitable and efficient health insurance coverage for a large public sector workforce in Kenya.
M-KOPA and Turaco Deliver Hospital Cash Insurance to Over 1 Million Kenyans in One Year: A Model for Financial Inclusion
In a landmark achievement for financial inclusion, M-KOPA and Turaco Insurance have provided Hospital Cash insurance to over 1 million Kenyans in just 12 months. This partnership, which embeds microinsurance into M-KOPA’s smartphones at no extra cost, represents a breakthrough in addressing Kenya’s low insurance penetration-currently at 3.1% outside the Social Health Insurance Fund (SHIF). By combining fintech innovation with insurtech accessibility, the collaboration has created a safety net for low-income earners, transforming how underserved communities manage healthcare costs.
This in-depth analysis explores the mechanics of the partnership, its socioeconomic impact, customer stories, and lessons for scaling similar models across Africa.
Key Takeaways
- M-KOPA and Turaco have insured over 1 million Kenyans with Hospital Cash coverage in just 12 months
- The embedded insurance model provides Ksh 1,000 per night for hospital stays with no additional cost
- 75% of beneficiaries had no prior health insurance coverage
- Ksh 1.2 billion has been paid out to claimants, averaging Ksh 1,200 per claim
- The partnership addresses Kenya’s low insurance penetration rate by leveraging smartphone technology
Table of Contents
- How the M-KOPA and Turaco Partnership Works
- Impact on Financial Resilience and Healthcare Access
- Overcoming Traditional Insurance Barriers
- The Technology Engine: Seamless Integration
- Challenges and Lessons Learned
- Expanding the Model: Next Steps for 2025–2026
- Conclusion: A Blueprint for Inclusive Insurance
How the M-KOPA and Turaco Partnership Works
Embedded Insurance: A Tech-Driven Solution
The initiative integrates Hospital Cash insurance into M-KOPA’s smartphone financing model:
- Product Offering: Customers receive Ksh 1,000 per night for hospital admissions in Ministry of Health-registered facilities.
- Activation: Coverage is automatically enabled upon purchasing an M-KOPA smartphone, requiring no additional sign-up.
- Claims Process: Policyholders submit documents via WhatsApp and receive payouts within 3–14 days.
Key Features
| Aspect | Detail |
|---|---|
| Coverage Duration | 12 months per smartphone purchase |
| Eligibility | All M-KOPA smartphone buyers |
| Payout Speed | 75% of claims processed within 72 hours |
The “More Than a Phone” Strategy
M-KOPA’s smartphones-assembled locally in Nairobi-are sold via pay-as-you-go financing, requiring a deposit as low as Ksh 999. The devices accounted for 20% of all new smartphones sold in Kenya in 2024. By bundling insurance, M-KOPA enhances the value proposition for its core demographic: “Every Day Earners” like motorbike riders, salon workers, and small-scale traders.
Impact on Financial Resilience and Healthcare Access
Breaking Down the Numbers
- 1 million insured: 75% had no prior health coverage.
- Ksh 1.2 billion paid out: Averaging Ksh 1,200 per claimant.
- Gender impact: 50% of women customers reported reduced financial stress.
Case Studies: Real-Life Transformations
1. Douglas Mauti – Motorbike Delivery Rider (Nairobi)
After a pneumonia diagnosis, Douglas received Ksh 5,000 from Turaco.
“The payout helped me buy medicine and cover rent. I now ride with confidence knowing I’m insured.”
2. Sharon Owuor – Salon Owner (Dandora)
Sharon claimed Ksh 8,000 over two hospital stays:
“This insurance saved me from borrowing money. I could focus on recovery.”
3. Esidor Ongolo – Security Guard (Ruai)
Esidor used his Ksh 2,000 payout to offset lost wages during a two-day admission:
“Without this, I’d have sold my phone to pay bills.”
Overcoming Traditional Insurance Barriers
Why Traditional Models Failed in Kenya
- High premiums: Average private insurance costs Ksh 6,000–10,000 monthly-unaffordable for daily earners.
- Complex onboarding: Lengthy paperwork and eligibility checks.
- Slow claims: Payouts often took 30+ days, eroding trust.
How M-KOPA and Turaco Disrupted the Status Quo
- Affordability: Zero extra cost-insurance is baked into device pricing.
- Simplicity: No medical checks or forms; claims via WhatsApp.
- Speed: 80% of claims processed within 72 hours.
| Related Resources | Description |
|---|---|
| How to Register for SHA in Kenya | Learn about Social Health Authority registration process |
| Top Money Market Funds in Kenya 2025 | Compare the best money market fund providers |
| Comprehensive Guide to SHA Packages | Detailed breakdown of Social Health Authority packages |
| Afya Yangu Registration Guide | Step-by-step process for Afya Yangu registration |
| Money Market Funds Calculator | Tool to calculate potential returns on investments |
| FAQ on Social Health Authority | Answers to common questions about SHA |
| Top 10 Insurance Companies in Kenya | Comprehensive guide to leading insurers |
| Insurance Products Overview | Browse all available insurance products |
The Technology Engine: Seamless Integration
Behind the Scenes: Systems and Partnerships
- API Integration: M-KOPA’s sales data syncs with Turaco’s systems for automatic policy activation.
- WhatsApp Bots: Customers file claims by sending admission documents to Turaco’s chatbot.
- Mobile Money Payouts: Funds are disbursed via M-Pesa, ensuring accessibility even in rural areas.
Quote from Ted Pantone, Turaco Co-Founder: “We’ve reimagined insurance as a frictionless digital product. By meeting customers where they are-on their phones-we’ve eliminated decades-old barriers.”
Challenges and Lessons Learned
Navigating Roadblocks
- Awareness: Initial skepticism required aggressive agent training and customer education.
- Fraud Prevention: Implementing AI-powered document verification to curb false claims.
- Scalability: Ensuring systems handle 12,000+ monthly claims without delays.
Key Success Factors
- Strategic Alignment: Both companies share a mission to serve low-income earners.
- Local Assembly: M-KOPA’s Nairobi plant reduced smartphone costs by 40%, enabling mass adoption.
- Regulatory Support: Collaboration with the Insurance Regulatory Authority (IRA) to streamline compliance.
Expanding the Model: Next Steps for 2025–2026
Scaling Across Africa
- Ghana Launch: The partnership will debut in Accra in Q3 2025, targeting 500,000 users.
- New Products: Maternity cover and accident insurance are in pilot stages.
Long-Term Vision
- 5 million insured: Goal for Kenya by 2027.
- Government Partnerships: Advocating for tax incentives on insured devices.
Quote from Martin Kingori, M-KOPA Kenya GM: “This isn’t just about insurance-it’s about building ecosystems that uplift entire communities. Our next phase will integrate savings and credit tools.”
Conclusion: A Blueprint for Inclusive Insurance
The M-KOPA and Turaco partnership demonstrates how embedding microinsurance into everyday products can bridge systemic gaps in healthcare access. By combining fintech distribution with insurtech innovation, the model has protected 1 million Kenyans from medical poverty while proving commercially sustainable.
As Africa’s insurtech sector grows, this case study offers critical lessons: prioritize accessibility over premiums, leverage mobile tech for scale, and design products that align with customers’ daily realities. With plans to expand into Ghana and beyond, M-KOPA and Turaco are pioneering a future where insurance isn’t a luxury-it’s a default feature of financial life.
Quick Facts & Milestones
- 1 million+ insured in Kenya (2024–2025).
- Ksh 1,000 daily payout for hospital stays.
- 75% of claimants had no prior health coverage.
- 20% market share of Kenya’s smartphone sales via M-KOPA.
Impact of Hospital Cash Insurance on M-KOPA Customers
| Metric | Percentage |
|---|---|
| Reduced financial stress | 50% |
| Increased business investment | 50% |
| No prior insurance coverage | 75% |
| Claims processed within 72 hrs | 80% |
Data sourced from Turaco Impact Report 2025
Final Word
The success of M-KOPA and Turaco’s Hospital Cash insurance initiative underscores a vital truth: financial inclusion requires rethinking traditional models. By turning smartphones into vehicles for health security, this partnership hasn’t just insured millions-it’s redefined what’s possible in emerging markets.
For more information about healthcare coverage options in Kenya, visit the comprehensive guide to SHA packages or learn about Afya Yangu registration.
