Business Insurance in Kenya 2025: A Complete Guide for SMEs

Running a business in is exciting — but also risky. From fire accidents to employee injuries, and even theft or lawsuits, unexpected events can wipe out years of hard work. That’s why smart entrepreneurs invest in business insurance.

In this guide, we’ll cover:

• Why every SME needs business insurance

• Types of business insurance in Kenya

• How much it costs & where to buy

• Step-by-step process to get covered

• Common FAQs about business insurance

💡 Tip: Business insurance is not just a cost — it’s protection for your income, employees, and future.

Why SMEs in Need Business Insurance

Small and medium-sized enterprises (SMEs) make up 98% of all businesses in Kenya. Yet, most operate without insurance.

Here’s why that’s risky:

1. Risk of Fire or Theft – Offices, shops, and factories can be damaged overnight.

2. Employee Injuries – Work-related accidents can result in costly medical bills.

3. Legal Liability – Customers or third parties can sue your business.

4. Business Continuity – Insurance cushions you so your business survives after losses.

Having insurance means you transfer risks to an insurer instead of carrying the burden alone.

Types of Business Insurance in Kenya

1. Property Insurance
   Covers buildings, stock, furniture, and equipment against fire, theft, or natural disasters.

2. Workers Compensation (WIBA)
   Mandatory under Kenyan law. Protects employees in case of injuries at work.

3. Public Liability Insurance
   Covers damages or injury caused to third parties during business operations.

4. Professional Indemnity Insurance
   For consultants, accountants, engineers, and other professionals — protects against claims of negligence.

5. Business Interruption Insurance
   Helps cover lost income if your business is forced to close temporarily.

6. Motor Commercial Insurance
   For company vehicles used in logistics, delivery, or transport.

7. Health & Medical Insurance for Staff
   Improves employee satisfaction while protecting against hospital bills.

📝 Smart move: Combine multiple covers into a business insurance package for lower costs.

How Much Does Business Insurance Cost in Kenya?

The cost depends on:

• Type of cover (fire, liability, health, etc.)

• Size of the business (number of employees, assets, vehicles)

• Risk profile (location, industry, safety measures)

💰 On average, SMEs pay between KSh 20,000 – KSh 200,000 annually depending on the package.

For example:

• Small retail shop (stock & fire cover) → From KSh 25,000/year

• Medium logistics company (vehicles, staff, liability) → From KSh 150,000/year

Where to Buy Business Insurance in Kenya

Several insurers offer SME-friendly packages, including:

• Jubilee Insurance

• Britam

• APA Insurance

• CIC Insurance

• ICEA Lion Group

👉 Always compare quotes from at least 3 insurers before making a decision.

Step-by-Step: How to Get Business Insurance

1. Assess Your Risks
   What assets, staff, or operations need protection?

2. Get Multiple Quotes
   Approach insurers or brokers and request package options.

3. Compare Coverage
   Don’t just look at cost — check exclusions, limits, and benefits.

4. Complete Application & Documents
   Provide business registration, PIN, payroll info (if staff), asset list, etc.

5. Pay Premiums
   Once approved, pay your premiums to activate the cover.

6. Receive Policy Document
   Review carefully to ensure all agreed terms are included.

Frequently Asked Questions (FAQs)

1. Is business insurance mandatory in Kenya?
Not all covers, but WIBA (Workers Injury Benefits Act) is mandatory for employers.

2. Can startups get business insurance?
Yes, insurers have packages tailored for small businesses, even with 1–2 employees.

3. How long does it take to get covered?
Most insurers process policies within 2–7 days.

4. What happens if I don’t have insurance?
You risk paying huge bills out-of-pocket for accidents, lawsuits, or damages.

5. Can I claim multiple times in one year?
Yes, as long as the total claim is within your policy limits.

6. Do SMEs in Kenya legally need business insurance?
Not all types are mandatory, but some—like Work Injury Benefits Act (WIBA) insurance and motor vehicle insurance—are required by law. Others, like property and liability insurance, are optional but highly recommended.

7. How much does SME business insurance cost in Kenya?
It depends on the type of coverage, business size, and risk level. On average, SMEs pay between KES 20,000 – KES 150,000 annually for common policies.

8. Which is the best insurance company for SMEs in Kenya?
Top providers include Britam, Jubilee Insurance, APA Insurance, CIC Insurance, and UAP Old Mutual, each offering SME-focused packages.

9. Can I get business insurance without collateral?
Yes. Business insurance is not like a loan—it’s a premium-based service. No collateral is required.

10. Is business interruption insurance worth it for SMEs?
Yes, especially for businesses that rely on tender contracts, supply chains, or physical premises. It protects income in case of unexpected disruptions.

Keep this in Mind

Business insurance might feel like an extra cost, but it’s actually an investment in stability and growth. Without it, one unexpected incident could shut your business down permanently.

👉 Whether you run a small shop in Nairobi, a factory in Thika, or a consulting firm, insurance gives you the peace of mind to focus on scaling.