Britam pays 300 Tana River families Kshs.15 million flood insurance: The first ever in Kenya
Kenyans were displaced by floods during OctoberâDecember 2023, with 170 fatalities recorded.
Of Tana River Countyâs 350,000 population lives below the poverty line, necessitating subsidised solutions.
Total insurance payouts distributed to 300 families in Tana River County.
Total insurance payouts distributed to 300 families in Tana River County.
Total insurance payouts distributed to 300 families in Tana River County.
The annual range that families showed readiness to pay in premiums
Discover how Britam Insurance, supported by FSD Africa, transformed the lives of 300 flood-affected families in Tana River County through Kenya’s first flood insurance initiative. This impactful story shares insights from beneficiaries like Sailencer Rukia Kale, local leaders, and innovators behind the project, showcasing how insurance can mitigate climate risks and empower vulnerable communities.
When torrential rains swept through Kenya between October and December 2023, Tana River County bore the brunt of the devastation. Over 546,000 Kenyans were displaced, 170 lives were tragically lost, and entire communities were left grappling with the aftermath of unrelenting floods. Among these were 300 families in Tana River who, for the first time, received financial relief through an innovative flood insurance programme. This lifeline, a partnership between Britam Insurance Kenya and FSD Africa, marked a turning point for communities historically overlooked by private-sector solutions.
Flooding in the Tana River is a cyclical catastrophe, with swollen rivers like the Tana bursting their banks every two to three years. Britam, supported by FSD Africa, spent over two years designing and piloting Kenyaâs first-ever flood insurance product to address this chronic risk. The journey began with an extensive feasibility study across Tana River, Kilifi, and Kisumu counties, involving 251 households and 16 stakeholders from humanitarian, government, and private sectors.
The findings were staggering: 70% of respondents expressed a willingness to invest in an insurance product, despite their average household income barely exceeding Kshs. 11,700 a month. Many families had suffered irreplaceable lossesâhomes swept away, livestock drowned, and crops obliterated. With this data in hand, Britam crafted a tailored insurance solution that would compensate families for flood damage and restore their dignity and sense of security.
For Sailencer Rukia Kale, a 29-year-old widowed mother of three from Mororo Village, the flood insurance was nothing short of a miracle. âThe Britam payments came when we needed them most,â she shares. Sailencer used the Kshs. 47,000 she received in multiple pay-outs to replace bedding while in a rescue camp, cover her daughterâs school fees, and repair her home after returning to the village. As the guardian of her two sisters and a niece, the funds gave her a fighting chance to rebuild her life. Her story mirrors the experiences of many others who benefited from the programme. Out of the 300 households insured, 75% were headed by women, youth, or persons with disabilitiesâgroups disproportionately affected by climate shocks. The pilot’s subsidised premiums, funded in part by Oxfam Kenya, ensured that even the most vulnerable had access to this groundbreaking financial safety net.
The success of the pilot has paved the way for a more ambitious vision. Britam, in partnership with the Tana River County Government, aims to enrol up to 20,000 families in flood-prone areas. Beyond insurance, the initiative includes measures such as strengthening riverbanks, constructing reservoirs, and introducing sustainable land-use practices. By integrating infrastructure development with financial products, the programme seeks to mitigate the root causes of flooding while offering a safety net for residual risks. Statistics reveal the urgency of this effort: Tana River County, home to 350,000 people, experiences peak floods in April and November. Over 62% of its population lives in poverty, and frequent flooding exacerbates their vulnerabilities. Despite these challenges, the willingness of many residents to pay annual premiums of up to Kshs. 3,000 underscores their recognition of the productâs value.
Britamâs flood insurance programme represents more than just financial aidâitâs a model for how innovative solutions can bridge the gap between humanitarian relief and sustainable development. FSD Africaâs catalytic funding played a vital role in de-risking the pilot phase, enabling Britam to partner with global reinsurer Swiss Re to cover 80% of the claims. This partnership illustrates the potential for scaling such interventions to other flood-prone areas, including urban regions like Kisumu, where risk profiles differ significantly. As Kenya braces for the uncertainties of climate change, the flood insurance programme offers a glimmer of hope. For families like Sailencerâs, it is more than a policyâit is a promise of resilience, a chance to rebuild, and a testament to the power of partnerships. By blending storytelling, data, and human-centred design, this initiative demonstrates that even in the face of devastation, recovery is possible with the right support. The journey doesnât end here. To scale and integrate climate adaptation measures, Britam and FSD Africa are rewriting the narrative of disaster response in Kenya, proving that even the most vulnerable can weather the storm and emerge stronger.
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