Despite the increasing frequency and severity of climate change impacts like droughts and floods in Kenya, climate insurance penetration remains critically low, leaving vulnerable populations exposed. While the insurance market is growing in value, it fails to reach those most affected by climate volatility, with climate-linked products accounting for less than one percent of total premiums.

• Kenya's insurance penetration stands at approximately 2.3 to 2.4 percent of GDP, significantly below the global average of about 7 percent.
• The Insurance Regulatory Authority (IRA) is pushing for innovation and broader access, with microinsurance showing growth momentum.
• Major insurers like CIC Insurance Group and ICEA LION General Insurance Company acknowledge climate risk as a material business concern, reporting on climate-related financial risks and opportunities.
• According to Regional Director Phocas Nyandwi of Africa Re, Africa contributes barely 2 percent of global agricultural insurance premiums, despite agriculture accounting for about 30 percent of Sub-Saharan Africa's GDP.