(Nairobi, Kenya) – Gross premium income for Kenya’s life insurance sector surged by 36.3 percent in the first quarter of 2026, driven mainly by a sharp increase in retirement savings channelled through private schemes from the National Social Security Fund. Data from the Insurance Regulatory Authority shows the industry collected KES 72.87 billion ($562.7 million / £449.4 million) in the three months to March, compared to KES 53.44 billion ($412.7 million / £329.6 million) a year earlier.
The jump was heavily concentrated in deposit administration and investment linked business. Together these two classes accounted for 63 percent of the overall increase in long term underwriter income. Deposit administration contributed KES 5.19 billion of the expansion, while the investments class added KES 7.05 billion, making it the fastest growing segment.
Deposit administration involves plans managed by a life company where pension funds accumulate in a master group annuity policy until a participant retires. The product includes contracted out tier II NSSF contributions, and it represented 29.7 percent of total premiums. Life assurance followed with a 19.7 percent share, indicating sustained demand for traditional savings and protection covers.
The IRA said the expansion in deposit administration was primarily linked to employers opting to contract out tier II NSSF savings to privately managed schemes. Under the NSSF Act of 2013, tier II contributions are set at six percent of pensionable earnings. For 2026, the lower limit of pensionable pay is KES 9,000 and the upper limit is KES 108,000. That translates to a maximum monthly contribution of KES 5,940 each from the employer and the employee, driving fresh inflows into life insurers.
Performance within the investment class was largely attributed to two firms. APA Life Assurance and Britam Life Assurance generated 65.9 percent of the segment’s increase, with premium growth of KES 2.53 billion and KES 2.12 billion respectively. The rise pointed to aggressive accumulation of funds under investment linked policies.
Deposit administration growth was concentrated even more narrowly. Kenindia Assurance Company and Pioneer Assurance Company together delivered 97.8 percent of the rise in that segment. Their premiums grew by KES 2.87 billion and KES 2.21 billion respectively.
Other long term insurance lines also recorded gains. Personal pension business grew 29 percent to KES 6.51 billion ($50.3 million / £40.2 million). Group life rose 21.7 percent to KES 8.72 billion ($67.3 million / £53.8 million), reflecting continued employer demand for staff benefits.
Some segments contracted. Group credit business fell 7.7 percent to KES 5.12 billion ($39.5 million / £31.6 million), mirroring slower lending activity. Annuities dipped 6.1 percent to KES 5.33 billion ($41.2 million / £32.9 million), suggesting caution among retirees.
The results show how NSSF reforms are reshaping the life insurance market, with underwriters positioning themselves as key managers of long term savings. Firms with strong distribution in pension linked products and investment solutions are emerging as the biggest beneficiaries, potentially widening gaps in market share.
Market concentration remained high. Britam Life Assurance kept the lead with a 20.1 percent share, followed by ICEA Lion at 15.7 percent and Jubilee Life at 11.5 percent. APA Life nearly doubled its share to 7.7 percent on the back of investment linked business growth. Kenindia expanded its footprint to six percent from 3.6 percent, boosted by deposit administration inflows.
Overall, seven insurers, Britam Life, ICEA Lion Life, Jubilee Life, APA Life, CIC Life, Kenindia Assurance and Absa Life, controlled 73.1 percent of premiums. The remaining 15 life underwriters held a combined market share of 26.9 percent. Market share is measured by gross premium income against total industry premiums.
The 36.3 percent growth pace in life insurance outpaced the general insurance segment. General premiums rose 8.4 percent to KES 81.88 billion ($632.3 million / £505.1 million) from KES 72.86 billion ($562.7 million / £449.4 million). In the first quarter, general business remained larger than life in absolute premiums. However, for the full year ended December 2025, life insurance had overtaken short term covers for the first time, signalling a shift in household focus towards long term financial planning products.