Kenyan insurtech firms raise Sh8.5bn in five years as investor interest grows

Kenyan insurance technology (insurtech) companies have raised Sh8.5 billion over the past five years, reflecting growing investor confidence in digital insurance solutions, a new report by Pan-African investment firm AfricInvest shows.

The report says Kenya has emerged as one of Africa’s leading insurtech hubs, supported by initiatives such as the BimaLab accelerator programme and the regulatory sandbox, which have helped startups develop and test innovative insurance products.

According to the report, Kenya ranked second in Africa for insurtech funding over the five-year period, behind South Africa, whose firms attracted Sh18.37 billion in investments.

“African insurtech companies raised over $300 million over the last five years, with funding peaking in 2025 at $80.6 million,” the report states.

It added that the largest funding deal in 2025 was South African startup Naked’s $38 million Series B investment, making it the continent’s most heavily funded insurtech company.

The report highlights increasing investor appetite for technology-driven insurance solutions across Africa, as startups leverage digital platforms, mobile technology and data analytics to improve insurance access, affordability and customer experience.

The findings come as Kenya continues to strengthen its position as one of Africa’s leading startup ecosystems. According to data from Africa: The Big Deal, Kenyan startups raised Sh16.3 billion during the first half of 2026, slightly lower than the Sh17 billion raised during the corresponding period last year.

Despite the marginal decline, Kenya remained among the continent’s top destinations for startup investment, ranking third after Egypt, which attracted Sh42.3 billion, and Nigeria, which raised Sh32.8 billion during the same period.

Industry analysts say continued investment in insurtech is expected to support financial inclusion by expanding insurance coverage to underserved individuals and businesses while accelerating the adoption of digital financial services across the region.