Over half of small scale businesses in Kenya remain uninsured, leaving millions of jobs and investments vulnerable in the face of disasters and or financial hardships. 

According to AAR Insurance’s Insurance Usage & Awareness Report 2024, about 53 percent of SMEs lack insurance coverage, while 52 percent depend on a single provider. This finding exposes a critical gap in the market, which offers insurers an opportunity to innovate and diversify their offerings to address the need for greater awareness about their service offerings.

“Many small businesses are still finding it challenging to protect themselves from the risks they face fully. To address this, we must raise awareness about the variety of insurance products available and engage more closely with SMEs to understand their unique needs,” said Justine Kosgei, Group CEO, AAR Insurance Kenya. 

He added, “By developing tailored solutions, we can help these businesses build the resilience and confidence they need to grow. Insurers, policymakers, and SMEs must work together to create a sustainable environment where businesses are equipped to face challenges, unlock new opportunities, and contribute to economic growth in the region.” 

The Insurance Usage & Awareness Report 2024–which shares key insights on the SME subsector while highlighting substantial gaps and opportunities–was launched by an alliance of the AAR Insurance and WYLDE International during the inaugural East Africa Sales Conference 2025.

According to the survey, there is a growing demand within the SME sector for cover services with over 70 percent of SMEs expressing interest in insurance. This offers players in the industry an opportunity to provide solutions that are tailored to SME’s needs, especially affordability and accessibility. 

As a result, insurance firms have been challenged to innovate with products, invest in educational initiatives, and advisory services that empower SMEs to understand and navigate their insurance options more effectively.

WYLDE International CEO Christopher Odongo stated, "Misinformation has long made it difficult for business owners to access reliable information about insurance solutions. Risk management is often misunderstood, and the complexity of insurance can be overwhelming.”

“However, the growing adoption of digital platforms presents a significant opportunity to bridge this gap. By leveraging technology, we can engage more effectively with SMEs, simplify the insurance process, and provide more accessible information that empowers business owners to make informed decisions and confidently protect their businesses,” he explained.

Limited awareness

Despite the traditionally low insurance uptake in East Africa, there is potential for growth and innovation. With Kenya's penetration at just three per cent, challenges such as limited awareness, cost concerns, and misconceptions about the value of risk management keep slowing growth in the industry. 

However, with increasing access to mobile technology and digital platforms, insurers can innovate, offer more accessible products, and simplify the process, helping to drive greater coverage and close the regional gap. This presents a promising future for the insurance sector in East Africa.

The report launch attracted over 200 delegates and agents, industry leaders, policymakers, and stakeholders from across East Africa.

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