Accessing quality healthcare is becoming increasingly challenging for many Kenyans, particularly those at the lower end of the income spectrum, due to the rising cost of living.
A study by African Health Business indicates that nearly half of Kenyans do not seek medical care when ill, citing insufficient resources and high treatment costs as major barriers.
As inflation rises and household disposable income declines, health insurance is seen as a potential tool to improve access to care for underserved populations.
However, only about 25 per cent of Kenyans currently have health insurance, either through private providers or public schemes under the Social Health Authority (SHA).
Experts say more innovative strategies are needed to increase insurance uptake among low-income communities.
Stephen Lokonyo, managing director at First Assurance, notes that insurance providers need to develop products with low premiums and flexible payment options that suit the irregular cash flows of low-income individuals.
“Increasing insurance uptake in underserved communities requires a multi-pronged approach that addresses core barriers such as high costs, lack of trust, and complex processes,” Lokonyo said. “Effective strategies focus on affordable products, digital innovation, community engagement, and strong government support.”
First Assurance recently launched ‘First Afya Biashara,’ a health plan targeting small and medium-sized enterprises (SMEs) with three to 19 employees.
The plan covers annual health check-ups and preventive services, helping to reduce extended absenteeism due to health issues. It also provides coverage for conditions often excluded by traditional insurance, including mental health management, substance abuse treatment, fertility treatments, and chronic disease management.
Jesca Karegua, marketing manager at First Assurance, highlighted the role of community outreach initiatives, such as free medical camps, in reaching uninsured populations.
Insurance penetration in Kenya remains low at 2.3 per cent, below the global average of 7.2 per cent. Most insurance companies are headquartered in Nairobi, with limited presence across the 47 counties.
According to the Insurance Regulatory Authority (IRA), many insurance products do not resonate with the public, contributing to low uptake.
The regulator advocates for targeted products, including plans for affluent clients that cover financial risk, wealth protection, and legacy planning.
