In 2010, conservative estimates of the voluntary microinsurance market was 150,000-200,000 policyholders, but if formal credit life insurance policies are added to this number, the estimate increases to 650,000-700,000 users (3% of the Kenyan adult population). If only 1 million M-PESA users and 1 million Kenyans with bank accounts who are uninsured buy insurance through these channels, the market size would increase by more than three-fold from 3% to 10% of Kenyan adults.

This 2010 diagnostic study reviewed the opportunities and challenges facing the Kenyan microinsurance market and was intended to catalyse a process through which all Kenyan stakeholders could realise the market’s full potential. It includes a demand-side analysis, overview of supply and distribution, as well as a review of the regulatory framework.