MICROCAPITAL BRIEF: Safaricom, Britam, Changmka Microinsurance to Offer Mobile Health Insurance in Kenya

Safaricom, a telecommunications provider in Kenya, reportedly has announced that it will be partnering with Britam, a Kenya-based investment firm, and Changmka Microinsurance, a Kenyan health insurance provider to offer new health microinsurance services in Kenya. Following on a pilot program that attracted 8,000 customers during 2013, the companies aim to attract 1 million customers by 2014 out of the 39 million Kenyans that do not currently have health insurance.  The companies offer insurance for medical coverage worth KES 290,000 (USD 3,400) at a cost of KES 12,000 (USD 140) per year. Policyholders will pay premiums via Safaricom’s M-Pesa Mobile Money Service, which was developed by UK-based mobile network operator Vodaphone.

As of December 2013, Safaricom has 17 million subscribers.  As of July 2013, Britam has total assets of KES 2.3 billion (USD 26.6 million). Financial information for Changmka Microinsurance is not available.

By Megan McGowan, Research Associate

About M-Pesa: M-Pesa is a mobile money service that was launched in Kenya in 2007 and has since been replicated elsewhere in Africa and Asia. The “M” stands for “mobile,” and “pesa” means “cash” in Swahili. Launched in Kenya by Safaricom Limited, a Kenya-based cell phone service provider, M-Pesa was developed by Vodafone Group Private Limited Corporation, a British multinational mobile network operator. As of September 2012, M-Pesa serves approximately 17 million clients through 45,500 agent outlets in Kenya. As of 2013, Safaricom reported 17 million subscribers. South-Africa based Vodacom, a unit of Vodafone, operates the M-Pesa service in India and Mozambique.

Sources and Additional Resources

[1] Standard Media: “Safaricom Wades into Insurance to Boost Revenues,” http://www.standardmedia.co.ke/business/article/2000103001/safaricom-wades-into-insurance-to-boost-revenues

MicroCapital: “Kenya Commercial Bank, Safaricom’s M-Pesa Launch Mobile App KCB M-Benki to Increase Financial Inclusion,” November 15, 2013, https://www.microcapital.org/microcapital-brief-kenya-commercial-bank-safaricoms-m-pesa-launch-mobile-app-kcb-m-benki-to-increase-financial-inclusion/

MicroCapital: “ICICI Bank, Vodafone Bring M-Pesa Mobile Money Service to India,” June 12, 2013, https://www.microcapital.org/microcapital-brief-icici-bank-vodafone-bring-m-pesa-mobile-money-service-to-india/

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