It is often said that knowledge is power. In the world of finance, this could not be more true. Across East Africa, access to financial products has grown over the years, yet insurance penetration remains low.

In Kenya, for instance, insurance penetration remains relatively low at just under 2.5 per cent, highlighting the untapped potential for financial protection and risk management. Some of the barriers to uptake are affordability and understanding. 

Without a clear grasp of how insurance works, its benefits, and how it fits into a broader financial plan, many individuals and households remain exposed to risk and unable to make informed decisions for the future.

Financial literacy goes beyond knowing how to save or invest. It is about understanding the tools available to protect and grow wealth. It enables individuals to plan for retirement, safeguard their families against unexpected events, and make choices that lead to long-term stability.

For businesses, financial literacy improves decision-making, strengthens resource management, and enhances risk planning, all of which are essential for sustainable growth.

The consequences of financial illiteracy are real. Families without adequate insurance can face devastating setbacks in the event of illness, accidents, or death. 

Entrepreneurs who lack knowledge of financial management may struggle to grow their businesses or withstand economic challenges. In contrast, individuals and organizations with financial knowledge are better equipped to navigate uncertainty, invest wisely, and secure their futures.

Closing the knowledge gap requires deliberate and sustained effort. Education should begin early, in schools and communities, and extend to workplaces where employees can access training on financial planning, savings, and insurance. 

Technology can play a key role by providing accessible platforms that offer guidance, resources, and support to help people make informed choices.

At Jubilee Life Insurance, our financial literacy programs target everyone, from the young to adults, helping people across all stages of life to make informed financial decisions. For this article, we would like to highlight our work with children.

We are particularly proud of our financial literacy work with the younger generation. By supporting initiatives such as the Art Competition and the Kenya Music Festival, we introduce young learners to practical financial concepts in engaging ways, simultaneously promoting creativity and artistic talent.

Focusing on the younger generation has a broader impact on families and communities. When the next generation understands the value of savings, insurance, and planning, they become agents of change, helping to foster a culture of financial responsibility that benefits everyone. 

By equipping young people with these skills, we contribute to a more financially aware, resilient, and prosperous society. Sustainable growth at the household, business, and national level depends on a foundation of knowledge. 

When people understand the instruments that protect and grow wealth, they can make informed decisions that reduce vulnerability and drive progress. Financial literacy is not only a critical skill but also the cornerstone of a stable, empowered, and resilient society.

The writer, Asman Mugambi, is the CEO, Jubilee Life Insurance