The Association of Kenya Insurers (AKI) has officially released the 2023 Insurance Industry Market Report, adopting the IFRS-17 reporting standard to enhance transparency and provide globally standardized financial indicators for investors, analysts, and rating agencies.

Speaking at the report’s dissemination, AKI Chairman, Mr. Tom Gitogo, acknowledged the delay in its release, citing the challenges of transitioning to IFRS-17. “2023 being the first year of IFRS-17 implementation, there were significant delays as members realigned their financial reporting,” he noted.

The report highlights strong industry performance, with insurance service revenue rising 17% to KES 255.96 billion from KES 219.40 billion in 2022. Insurance service expenses increased by 11.6% to KES 220.0 billion. As a result, the industry’s insurance service result surged by 62% to KES 35.97 billion.

Net investment income grew by 11.6% to KES 67.43 billion. Overall, profit before tax saw a 48% increase to KES 24.40 billion, with tax expenses rising 44% to KES 6.2 billion, resulting in a profit after tax of KES 18.2 billion, up from KES 12.2 billion in 2022.

In the non-life insurance sector, medical insurance led with KES 64.34 billion in revenue, followed by motor insurance (KES 55.6 billion), fire insurance (KES 21.4 billion), and Work Injury Benefits Act (WIBA) insurance (KES 15.45 billion).

In Life insurance business, pension registered the highest insurance revenue at KES 66.20 billion followed by group life at KES 39.35 billion and ordinary life at KES 19.33 billion.

Insurance penetration in Kenya increased marginally to 2.41% in 2023, up from 2.33% in 2022. Global penetration levels averaged 7% in 2023, while in Africa, the average was 3.5%. Kenya is ranked 4th in Africa after South Africa, Namibia and Morocco.

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