Nairobi Dominates Kenya’s Insurance Business With 81.1pc of Premiums

Nairobi emerged as the dominant force in Kenya's insurance sector in 2025, securing an overwhelming 81.1% of the country's insurance premiums, according to data released by the Insurance Regulatory Authority (IRA). The capital's overwhelming dominance far surpassed other regions, with Mombasa trailing at a mere 3.3%, Kiambu at 2.7% and Nakuru at 1.8%.

The concentration of major businesses, banks, financial institutions, government agencies and formal employers in Nairobi has contributed to this trend, alongside the headquarters of most of Kenya's major insurers. Despite efforts to expand their reach across the country, Nairobi continues to account for the bulk of premiums. Nationally, the insurance industry experienced robust growth in 2025, with gross direct premiums rising by 16.5% to Sh466.58 billion from Sh400.59 billion in 2024.

This increase translated into an additional Sh66 billion in premiums collected by insurers. Insurance penetration also improved to 2.63% from 2.45%, marking the highest level in recent years. The growth was primarily driven by the long-term insurance segment, with premiums surging 23.2% to Sh236.29 billion. Life funds expanded by 22.9% to Sh990.27 billion, Deposit Administration funds stood at Sh81.22 billion, and Personal Pensions reached Sh24.54 billion.

While general insurance also grew, its expansion was slower, with premiums increasing by 9.37% to Sh224.24 billion. Medical insurance premiums, meanwhile, rose by 22.3% to Sh93.20 billion due to rising healthcare costs and increased demand for medical protection. Microinsurance showed the fastest growth, with premiums increasing nearly tenfold to Sh2.17 billion.

Despite the strong growth in premiums, insurers faced higher claims obligations, with long-term insurance claims increasing by 15.69% to Sh122.81 billion and general insurance and microinsurance claims rising by 14.31% to Sh104.47 billion. The sector's balance sheet also strengthened, with total insurance industry assets growing by 20.45% to Sh1.51 trillion and investments increasing by 18.87% to Sh1.31 trillion.

Direct insurers recorded a combined profit of Sh22.37 billion, while reinsurers posted profits of Sh5.28 billion during the year.