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Why Young Kenyans Need to Start Retirement Planning Today

by Patience Muvea
written by Patience Muvea
Financial independence feels incredible when it first arrives. Landing that dream job, closing your first big deal, or watching your business take off brings a natural desire to celebrate and upgrade your lifestyle.
That better apartment, reliable car, or smartphone you’ve been eyeing suddenly becomes achievable. This excitement is completely understandable and well-deserved.
However, there’s an important conversation that often gets overshadowed by immediate success: planning for the future version of yourself. Most retirees in Kenya currently live on less than Sh20,000 per month, according to the Retirement Benefits Authority (RBA). These aren’t people who made poor choices, they’re individuals who simply didn’t have access to the financial tools and information that young professionals have today.
The current pension system presents challenges that weren’t necessarily obvious to previous generations. Only 19 percent of Kenya’s workforce actively contributes to a pension scheme, and even those who do can typically only replace about 34.3 percent of their previous earnings—well below the 40 percent experts recommend for comfortable retirement.
Fortunately, young professionals today have options their parents didn’t. Private pension plans offer higher returns, tax benefits, and the flexibility to build substantial wealth over time.
The advantage of starting young is remarkable: even Sh5,000 per month can grow into significant wealth over 30-40 years through compound interest. Someone starting at 25 needs to save far less monthly than someone starting at 35 to reach the same retirement goal.
This is especially relevant for Kenya’s growing number of freelancers, content creators, and entrepreneurs. These careers offer exciting opportunities and potentially high earnings, but they also require taking personal responsibility for long-term financial security. Unlike traditional employment with structured benefits, these paths require proactive planning.
The beautiful thing about starting retirement planning early is that it’s actually about creating choices. It’s about reaching a point where you work because you love what you do, not because you have to. Every month you invest in your future self is a month of freedom you’re purchasing for later. Your future self will thank you for the wisdom and foresight you show today.
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Liberty Kenya Holdings Posts 108.5% Profit Surge to KShs 1.4B in 2024
Insurance

Liberty Kenya Holdings Posts 108.5% Profit Surge to KShs 1.4B in 2024

by Brian Yatich
written by Brian Yatich

Liberty Kenya Holdings has delivered a standout performance for 2024, with profits more than doubling to KShs 1.402 billion – a remarkable 108.5% surge from the previous year’s KShs 672 million.

The impressive growth story stems from multiple strategic wins across the business.

The company’s investment portfolio emerged as the star performer, with net investment income skyrocketing 233% to KShs 4.741 billion. This dramatic increase reflects Liberty’s sharp positioning to capitalize on recovering capital markets and favorable interest rate movements in the latter part of the year.

Equally noteworthy is the insurance division’s steady growth, where revenue climbed 27% to KShs 10.95 billion. What makes this achievement particularly impressive is that it came alongside a 1.1% reduction in insurance service expenses, demonstrating Liberty’s ability to grow its top line while maintaining cost discipline.

Shareholders have particular reason to celebrate, with earnings per share more than doubling to KShs 2.59 and the board proposing a generous dividend of KShs 1.00 per share – a 168% increase from 2023. This dividend recommendation, comprising both ordinary and special components, will be put to vote at the upcoming AGM on May 23, 2025.

CEO Kieran Godden attributes this success to the company’s “consistent focus on delivering sustainable growth while protecting and growing our clients’ wealth.”

He notes that despite operating in a complex macroeconomic environment, Liberty’s teams delivered exceptional results through prudent risk management and customer-centric innovation.

The company’s strategic repositioning continues with the ongoing sale of its Tanzanian subsidiary, Heritage Insurance, which has been classified as a discontinued operation. This move, expected to conclude in the first half of 2025, represents Liberty’s focus on optimizing its portfolio, though management emphasizes it won’t materially impact future earnings.

Looking ahead, Godden strikes a balanced tone: “While the exceptional investment gains seen in 2024 may not be replicated in 2025, we remain well positioned for sustainable profitability.” The company plans to maintain momentum through operational efficiency and strategic growth initiatives, even as it acknowledges potential headwinds in replicating this year’s extraordinary investment performance.

With total assets growing 10% to KShs 48.15 billion and a strengthened balance sheet, Liberty Kenya Holdings enters 2025 from a position of financial strength, ready to navigate market uncertainties while continuing its trajectory of value creation for stakeholders.

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Insurance

OLEA Expands African Presence with Acquisition of Marsh Uganda and Botswana

by Brian Yatich
written by Brian Yatich

OLEA, the Pan African insurance broker, has announced its agreement to acquire Marsh Uganda and Marsh Botswana, pending local regulatory approval.

The move follows a successful five-year collaboration between the two companies and aims to bolster OLEA’s presence in the African insurance market.

Since entering East Africa in 2019 with a 40% stake in Kenya’s Koolridge Insurance Brokers, OLEA has positioned Nairobi as a key hub for expansion into neighboring markets, including Uganda, Rwanda, and Tanzania.

The acquisition of Marsh Botswana and the merger of Marsh Uganda with OLEA’s existing operations in Uganda represent a significant step in OLEA’s growth strategy. It underscores the company’s commitment to providing tailored insurance solutions across the continent.

“We are excited to welcome the talented teams from Marsh Uganda and Marsh Botswana into the OLEA family,” said Olivier Canuel, OLEA Group CEO. “This acquisition not only enhances our presence in Africa but will strengthen our service offerings and expand our capabilities.”

Vincent de Charnacé, OLEA CEO for East & Southern Africa, added that the company will invest in local talent and resources to ensure a smooth transition and maintain high service standards.

Guy Royston, CEO of Africa Regional Operations at Marsh McLennan, expressed confidence in the partnership, stating, “Marsh Africa has enjoyed a strong and collaborative working relationship with OLEA. Subject to regulatory approval, I am pleased that they will be the new custodians of our offices in Botswana and Uganda.”

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Insurance

Liberty Kenya Taps Rosalyn Mugoh as New MD for Insurance Arm

by Brian Yatich
written by Brian Yatich

Liberty Kenya Holdings has officially appointed Rosalyn Mugoh as the Managing Director of Heritage Insurance Company Kenya Limited, effective immediately.

The strategic move follows the completion of all necessary regulatory approvals, positioning Heritage for ongoing growth and innovation in the competitive insurance landscape.

With over 14 years of extensive executive experience in the insurance and financial services industries, Mugoh brings a robust skill set to her new role, focusing on commercial management, strategic business development, and client relations.

Her leadership track record is characterized by a strong ability to foster organizational growth, forge impactful partnerships, and enhance customer satisfaction.

Prior to her appointment at Heritage Insurance, Mugoh held significant roles, including Managing Director and Head of the Commercial Executive Committee at Zamara Kenya. Her leadership journey also includes a stint as the Divisional Head of Employee Benefits at the same firm, alongside previous roles at Aon Kenya and Trustmark Insurance Brokers. Throughout her career, she has successfully spearheaded market expansion and revenue growth initiatives.

Kieran Godden, Group Chief Executive Officer of Liberty Kenya Holdings, expressed confidence in Mugoh’s capabilities, stating, “I truly believe that Rosalyn’s leadership at Heritage Insurance signifies a pivotal moment in the company’s journey. Her vast experience in both commercial and operational leadership will seamlessly align with our strategic objectives as we continue to advance our mission.”

Mugoh holds an MBA in Strategic Management from the University of Nairobi and a Bachelor of Business Administration in Marketing from Africa Nazarene University.

Additionally, she is a Fellow of the Life Management Institute and a graduate of the prestigious Global CEO Africa Program, completed in collaboration with Strathmore Business School, Yale School of Management, and Lagos Business School.

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Data Breach Incidents Drive Increased Cyber Insurance Risks
CybersecurityInsurance

Data Breach Incidents Drive Increased Cyber Insurance Risks

by Brian Yatich
written by Brian Yatich

In recent months, the upward surge in cyber insurance claims has continued, primarily fueled by a significant increase in data and privacy breach incidents.

Allianz Commercial’s claims analysis indicates a dramatic 14% rise in large cyber claims exceeding €1 million in the first half of 2024, coupled with a 17% increase in severity. This trend follows a staggering 41% increase in the frequency of such claims in 2023, although severity levels remained relatively stable, rising by just 1%.

A common thread among these claims is the presence of data and privacy breach-related issues, which account for approximately two-thirds of the large losses reported.

Trends Fueling Growth in Cyber Claims

The escalation in data breach claims can be attributed to several critical trends. The prevalence of ransomware attacks has surged, particularly those involving data exfiltration tactics, highlighting changing strategies among cybercriminals. As businesses increasingly interconnect and share vast amounts of personal information, the risks associated with data breaches grow correspondingly.

Furthermore, a shifting legal landscape has led to a notable increase in ‘non-attack’ data privacy-related class action litigation—claims arising from issues such as wrongful data collection and processing. In fact, the value of these claims has tripled over the past two years.

The emergence of class action lawsuits surrounding privacy violations, such as consent and data usage, marks a significant shift in the legal environment. In the United States, 2023 saw over 1,300 data privacy breach claims filed—more than double the amount from the previous year, according to law firm Duane Morris.

These lawsuits can yield substantial financial implications for large corporations, with potential costs often eclipsing those associated with ransomware incidents.

A Surge in ‘Non-Attack’ Class Action Lawsuits

The increasing number of ‘non-attack’ data privacy claims stems from rapid technological advancements, heightened commercial value placed on personal data, and evolving regulations.

While the European Union’s General Data Protection Regulation (GDPR) sets a relatively stringent framework for privacy protection, U.S. regulations remain less prescriptive, creating a landscape ripe for class action litigation. This ambiguity has drawn the attention of plaintiff attorneys seeking lucrative opportunities.

Class action lawsuits have proliferated against various organizations for utilizing tracking tools like Meta Pixel, which monitor user behavior, and entertainment platforms have also faced scrutiny for potential violations of privacy rights.

Notably, one major cybersecurity incident can lead to a cascade of lawsuits; for instance, over 240 lawsuits related to the MOVEit data breach were consolidated into a single multidistrict litigation case in October 2023.

Data Exfiltration: A New Era of Cyber Extortion

The last 18 months have witnessed several high-profile mass-data exfiltration cyber-attacks involving organizations like MGM, T-Mobile, and Change Healthcare. These breaches have not only compromised the personal data of millions but have also prompted a surge in class action litigation, forcing companies to confront exorbitant extortion demands.

As attackers continue to employ data exfiltration as a technique, the nature of claims is evolving from simple ransomware incidents to complex privacy litigation cases.

The ramifications of these breaches extend beyond immediate financial losses. Companies now face potential regulatory fines, costs associated with mandatory breach notifications, and the hefty price tags that come with litigation—which can exceed what many initially estimated, reaching upwards of hundreds of millions of dollars.

The Role of AI in Cybersecurity Challenges

As reliance on artificial intelligence (AI) surges across various industries, the potential for data privacy breaches heightens. A recent McKinsey survey reveals that nearly 65% of organizations report regular use of AI, nearly double from the previous year.

While AI can enhance operational efficiency, it also relies on extensive data collection, raising concerns about the potential for unauthorized access and breaches of privacy laws.

Until regulations governing AI are established, organizations will likely navigate a landscape fraught with uncertainty, increasing the risk of data privacy-related losses.

The type of AI application significantly influences risk levels; for instance, consumer-facing applications pose greater privacy challenges than those focused on internal processes.

Investing in Cybersecurity for Future Resilience

In light of these alarming trends, businesses must intensify their cybersecurity efforts. Despite recent increases in investment, many high-profile data breaches are attributed to inadequate security measures within organizations and their supply chains.

Adopting robust cybersecurity practices—ranging from stringent access controls and database segregation to thorough audits of vendor cybersecurity—remains essential.

Furthermore, organizations must prioritize early detection and response capabilities. Alarmingly, about two-thirds of breaches are discovered through third-party notifications or the attackers themselves.

Preventing delays in detection and response can drastically reduce the financial impact of an incident.

AI technology also plays a pivotal role in cybersecurity defense. Companies leveraging AI for security reporting can reduce the costs associated with data breaches significantly, sometimes by approximately $2 million on average, as noted by IBM.

As the landscape of cybersecurity continues to shift, the insurance industry must adapt, offering resources and guidance on emerging risks associated with data privacy and breaches.

Investing in preventive measures will be crucial as companies navigate the growing complexities of cyber threats and the evolving regulatory environment.

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AAR Insurance
BusinessInsurance

AAR Insurance Opens up a New Sales Office in Meru Town

by Kwabe Ben
written by Kwabe Ben

AAR Insurance is proud to announce the grand opening of its brand new sales office in Meru town, solidifying its commitment to supporting the region’s dynamic growth and strengthening its connection with the local community. This expansion marks a significant milestone for AAR Insurance, recognizing Meru’s potential as one of the fastest-growing markets in Kenya.

Dr. Patrick Gatonga, Group CEO at AAR Insurance, said, “I would like to thank the Meru community and stakeholders for welcoming us here. We took time to study and understand  Meru County; there is a high prevalence of cancer, diabetes, and hypertension. This study necessitated the creation of unique insurance solutions for the people of Meru, including ShwAARi, a simple, non-traditional insurance product. Our efforts were to ensure that we, as AAR Insurance, are part of the growth of Meru County.

Our technology partner,  M-tiba, has ensured that our insurance solutions are easily accessed via an end-to-end digital platform. We would like to be active participants in the development of Meru in support of devolution, which has played a significant role in bringing development closer to the people. Additionally, AAR Insurance is a technology-driven insurance provider; we have my WAKALAAR platform, meaning our agents can log on and sell insurance wherever they are. We hope that the people of the Mt. Kenya region will take advantage of this and create opportunities for self-employment.

AAR Insurance recognizes the importance of accessibility and convenience. The new Meru sales office brings its comprehensive insurance solutions and exceptional customer service closer to Meru residents, ensuring a seamless and personalized experience. This move reflects the company’s dedication to building solid relationships with the local community.

Speaking during the event, the Municipality ward MCA Caleb Mutethia Kibuko said, “Meru is a growing cosmopolitan town. We continue to call upon investors to come to Meru. Through this, we can get opportunities for our young people. As your legislator, I will be here to support AAR Insurance. We welcome all stakeholders to join us as we discuss what legislation is needed to create an enabling environment for businesses in Meru.”

“We are keen to work with the community as we bring services closer to the people. Meru town is on a growth trajectory supported by the numerous economic activities in this region. We are here to ensure that we provide peace of mind and that their health and wealth are protected free from the worry of medical bills,” said Justine Kosgei, Principal Officer at AAR Insurance. “Products like our innovative ShwAARi, created specifically for the Kenyan market, demonstrate our commitment to providing relevant and accessible solutions. Recognizing that one size does not fit all, ShwAARi offers a range of customizable options catering to individuals’ and families’ diverse needs and budgets.

This allows clients to tailor their coverage to their unique requirements. For instance, clients can choose how to utilize their health coverage: whether they need outpatient care or inpatient attention, the decision is theirs. Additionally, ShwAARi offers premium payment flexibility, where clients can enjoy the freedom to pay their premium monthly or annually. We are confident that the Meru community will find immense value in our diverse offerings,’” he added.

According to the International Journal for Equity in Health, only 8% of informal workers in Kenya have health insurance, and overall insurance penetration is low at 3%. These numbers aren’t just statistics; they are human faces – families exposed to illness, businesses vulnerable to loss, and dreams crushed by unforeseen circumstances.

This is why AAR Insurance has an aggressive approach towards its technology-first operation model to ensure products and services are seamlessly accessible to its customers. By focusing on value-based insurance products from the client’s life, health, and business perspective, AAR Insurance will continue to deliver excellent products and services for its clients, evidenced by the many available customized insurance solutions.

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Climate ChangeInsurance

Insurance companies at the saving grace of climate change

by Brian Yatich
written by Brian Yatich

Let’s imagine that you’ve bought million dollar worth of property in one of the prestigious suburbs in the coastal region. The beach house looks exquisite and promises a haven of financial returns when leased.

You may choose to live there, rent out, leave it vacant, or sell it. You’re sitting pretty, and so you may ask yourself, “Why do I need property insurance?”

Then, all of a sudden, floods happen and causes severe damage. Now you have to cover the entire cost of repairing the house, and this eats into your finances. If you’d had property insurance, it would have paid, in part or in whole, for your home to be fixed or replaced, securing your peace of mind and saving you extra costs.

To prevent such ugly scenarios, home buyers are normally told to purchase an insurance cover. The chairman of real estate event, the Kenya Homes Expo, says that a home buyer should sample the options of covers available to suit the climatic risks involved when purchasing property.

Daniel Ojijo, says that insurance companies have advanced in undertaking climatic assessments to cater to the various needs of a home owner.

“The basic goal behind buying any insurance is to make you financially whole following a loss. You pay a small certain fee to an insurance company today in exchange for a guarantee from the company that it will bear the burden of uncertain loss in the property which really is a win for you,” he says

Real estate assets are at increased risk of damage from extreme weather hazards due to climate change. Property owners, investors, insurers, and asset managers are tasked to understand how climate change will impact current and future vulnerabilities of physical assets.

Insurance companies take various measures to mitigate climate risks in the real estate industry. Some strategies implemented includes risk assessment and underwriting by investing in advanced data analytics. Insurers are adjusting their premiums based on the level of risk a property faces due to climate change. Properties located in high-risk areas may see higher premiums to account for the potential for increased damages.

Overall, insurance companies are proactively taking steps to mitigate climate risks in real estate by incorporating climate data into their risk assessment processes, promoting sustainable practices, and collaborating with stakeholders to develop effective strategies.

The Kenya Homes Expo provides a platform for aspiring home owner to sample the insurance solutions suitable for their regional areas. The event is on its 34th edition which is scheduled to happen at the KICC on October 19th-22nd.

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Njeri Jomo appointed as Jubilee Insurance CEO
BusinessInsuranceWomen in Business

Njeri Jomo Appointed As Jubilee Insurance CEO

by Ndungu Brian
written by Ndungu Brian

Njeri Jomo has been appointed as the Chief Executive Officer and Principal Officer of Jubilee Health Insurance Limited.

Njeri Jomo previously served as the General Manager, Retail Business Development at Britam Group, responsible for driving the growth of the retail product portfolio and managing the distribution channels.

“Njeri is an experienced and multifaceted executive leader committed to delivering growth and profitability, organizational transformation, and strategic evolution with a career spanning over 20 years in financial services,” Jubilee Holdings Limited said in a statement.

She has also worked for Britam Asset Managers, UAP Provincial Insurance, Midstate Insurance Brokers, and Kenyan Alliance Insurance.

Njeri holds an Executive Master of Business Administration from USIU Africa and Frankfurt School of Finance and Management, a Bachelor’s degree in Business Administration (Marketing) from Kenya Methodist University, an associate, Life Management Institute (ALMI) from LL Global USA, a Diploma in Insurance and an Award in Bancassurance from the Chartered Insurance Institute — London and a Certificate of Proficiency (COP): Life & General Insurance from the College of Insurance.

 

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Bonfire Travelers To Receive Free Travel Insurance From Britam Insurance
BusinessInsurance

Bonfire Travelers To Receive Free Travel Insurance From Britam Insurance

by Ndungu Brian
written by Ndungu Brian

Tour and travel company Bonfire Adventures has inked a deal with Britam Insurance to provide Bonfire travelers will free travel insurance.

In the deal, all domestic travelers will be insured against accidental injuries, illnesses, and death during their travel. Deaths caused by an accident will see beneficiaries paid Sh100,000. A similar amount will be paid in case of a permanent disability. Additionally, customers are covered with up to Sh40,000 for medical expenses.

“This cover is a value add to our customers and aligns with our commitment to give customers memorable experiences. This partnership is also timely as we approach the holiday season,” said Bonfire’s Chief Executive Officer Simon Kabu.

Travelers can also opt into an enhanced package for Sh600, which covers evacuation and hospitalization during their trip.

Enhanced cover benefits include Sh100,000 for death and Sh100,000 for permanent disability arising from an accident during the trip. Additional benefits include Sh100,000 for inpatient medical treatment and Sh40,000 for emergency medical evaluation during the trip.

“We want to ensure that Kenyans have peace of mind when creating memories with their loved ones; both individually and collectively,” said Evah Kimani, Britam’s Director for Partnerships and Digital, while announcing the partnership.

Britam and Bonfire also have plans to introduce travel insurance coverage for international travel as well.

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BusinessInsuranceLeadership

Invesco Assurance Appoints New CEO, Board Chair

by Kwabe Ben
written by Kwabe Ben

Daniel Muriungi Mugao has been announced as the Principal Officer and Chief Executive Officer of Invesco Assurance as of 7th March 2022.

The new appointment to the Insurance Underwriter follows approval from the Insurance Regulatory Authority.

Mr. Mugao holds a Bachelor of Commerce degree (Insurance Option) from the University of Nairobi and an MBA in Marketing from Egerton University.

Mr. Mugao is a seasoned Insurance Professional with over 29 years of experience, and over 10 years spent in a management position. He has proficiency in business management, sales, underwriting, claims and service processes.

Mr. Stephen Kirubi Njoka, the chair of the board of directors at Invesco Assurance

Joining at a critical time that company is gearing around for a major turnaround, he’s expected to bring a robust business strategy meant to change the fortunes and image of the insurer, this as the sector is seeing an increase in claims fraud in the motor vehicle insurance space.

Previously, he worked as General Manager of Britam General Insurance (K) Company, as well as Head of Business Development at Jubilee Insurance Company.

Mr. Mugao joins Invesco from Pacis Insurance Company where he was a consultant offering strategic direction and supporting management to grow business.

Invesco has also appointed Mr. Stephen Kirubi Njoka as its chair of the board of directors in a move aimed at turning around the fortunes of the company which has in the past undergone business turbulence largely due to insurance fraud emanating from the Public Service Vehicle sector

Mr. Kirubi, the new board chair, is a seasoned banker, management and leadership executive, whose expertise is in change and performance management, and strategic and public sector reforms.

He holds a BA degree in economics and public administration from Punjabi University in India and a BA in psychology from Collin County Community College in USA.

“Our immediate focus will be developing and implementing a turnaround business strategy aimed at drastically reducing the level of fraud in the business while instituting measures that place the customer at the center of our business,” Mr. Mugao said.

 

 

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