NAIROBI, Kenya, Jan 30 – Kenya’s low insurance penetration received a boost on Thursday following a tripartite agreement between digital taxi company Little, Minet, and Pioneer Insurance.
The partnership aims to onboard over 200,000 Public Service Vehicle (PSV) drivers on the app, offering them financial protection in case of accidents.
Under the new arrangement, drivers will receive Sh3,000 per day for up to ten days if their vehicle is involved in an accident, compensating for lost income while the car is under repair.
“We recognize that many Kenyans are turning to gig work as traditional jobs become harder to come by. The taxi-hailing business has proven to be a stable source of income in Kenya’s gig economy, employing thousands,” said Minet CEO Sammy Mudhui.
“The partnership will address income disruption, particularly in cases of accidents and other incidents that may keep drivers off the road for extended periods,” he added.
The insurance product is integrated into the Little app, allowing drivers to select payment options in flexible installments. In the event of an accident, drivers receive cash to expedite repairs at a mechanic of their choice.
Additional benefits include a complimentary valuation voucher, free political violence and terrorism cover, digitized onboarding, and instant certificate issuance.
Speaking at the launch, Pioneer Insurance CEO Milka Kinyua highlighted Kenya’s low insurance uptake, noting that it leaves many financially vulnerable to unforeseen events.
“Historically, underwriters and brokers have developed insurance products without direct collaboration. This initiative is different because we have brought together three partners to ensure a seamless process,” she said.
Kenya’s insurance penetration remains low compared to other economies, standing at 2.4 percent as of fiscal year 2023, according to the Insurance Regulatory Authority and the Kenya National Bureau of Statistics 2024 Economic Survey.
This is significantly below the global average of 6.8 percent, according to the Swiss Re Institute.
The low penetration rate is largely attributed to the perception of insurance as a luxury rather than a necessity, with many only purchasing coverage when required by law.
