CIC insurance, Microfinance institution ECLOF Kenya and Noble Strides Insurance have announced plans to ride on cash rewards to hospitalised business owners to attract more SMEs to cover their businesses.
The product targeting low- and middle-income earners, aims to cushion small business owners from income loss during periods of hospitalisation.
Kenya has experienced an entrepreneurship boom across several sectors over the years.
But behind all the hustle and grind, experts say most SMEs are living dangerously close to disaster.
No insurance, no safety nets. One small problem, be it a health scare or a cyber-attack, and the whole thing can come crashing down.
“We know most of our clients are sole proprietors. If they are hospitalized, they lose income and sometimes their families go without food. Afya Cash puts money directly in their pocket, giving them financial stability during recovery,” said CEO of ECLOF Kenya Esther Moi.
Under its Afya Cash product—developed in jointly with CIC Insurance Group and Noble Strides Insurance Agency— the firm will offer direct cash payouts to clients admitted to hospital for at least two nights.
“Unlike Social Health Authority (SHA) which pays hospitals directly, Afya Cash provides direct compensation to individuals, helping them bridge the income gap caused by business interruptions,” added Moi.
For every night spent in hospital from day two, the insured receives Sh1,000, up to a maximum of Sh50,000 at an annual premium of Sh1,200.
CIC Group, Head of Microinsurance Michael Mugo, expressed hope that the product will drive more businesses towards safeguarding their operations through insurance.
“We are targeting the mama mboga, boda boda riders, small traders, and rural farmers. These are people who’ve been largely ignored by mainstream insurance. We want to change that,” said Mugo.
Despite a majority od SMEs remaining uninsured, a 2023 study by the Association of Kenya Insurers (AKI) found that about two-thirds of SMEs are now taking risk seriously.
They're buying proper insurance covers, not just fire and theft, but also for business interruption, stock loss, and even equipment breakdown.
Some insurance companies are now tailoring products to fit small businesses, allowing flexible monthly payments depending on businesses sales cycle.
Managing Director of Noble Strides, Maxwell Bosire, said that the role of partnerships and distribution in scaling insurance access.
“We work with ECLOF’s extensive network and staff to ensure this product reaches the grassroots. By embedding the insurance into existing loan products, we make it seamless and accessible,” he said.
With over 55,000 clients—60 per cent of them women—ECLOF aims to scale its reach to over 200,000 in the next five to seven years, leveraging its 40 branches spread across the country.
Kenya’s insurance penetration remains below three per cent, largely driven by mandatory policies.
The launch comes at a time when many small businesses have suffered losses due to recent protests, further highlighting the need for accessible financial safety nets.
