Government securities consistently dominate Kenya's insurance assets, holding over 69% of the total share

  • Government securities consistently dominate, holding between 69% and 71% of total insurance assets.
  • In 2022, government securities reached their peak share at 71.4%.
  • Investments in subsidiaries fell steadily from 11.9% in 2021 to 8.4% in 2024.
  • Ordinary shares and investment property grew slightly, reaching 9.4% and 9.2% respectively, in 2024 and 2023.
  • Term deposits declined from 8.6% in 2021 to around 6.7% in 2024.
  • The sector made gradual diversification moves but remained highly concentrated in government securities.
  • The consistent focus on low-risk assets highlights insurers’ preference for stability and capital preservation.

Kenya’s insurance sector has remained heavily reliant on government securities, which consistently make up more than two-thirds of the industry’s total assets between 2021 and 2024. This dominance underscores insurers’ preference for safe and stable investment options, particularly in a market where risk management is paramount. In 2024, government securities accounted for 71.1% of assets, maintaining their stronghold despite fluctuations in other investment classes.

While government securities dominate, other asset classes show shifting dynamics. Investments in subsidiaries, for example, declined from 11.9% in 2021 to 8.4% in 2024, suggesting insurers may be scaling back exposure to company-linked risks. Conversely, investment property and ordinary shares have maintained relatively stable shares, with property investment gradually rising to 9.4% in 2024, indicating diversification efforts. Term deposits, however, fell slightly from 8.6% in 2021 to 6.7% in 2024.

Source:

Insurance Regulatory Authority (IRA), Kenya

Period:

2021-2024
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