Kenya, 22 October 2025 - The draft Insurance (Amendment) Regulations, 2025 seek to establish a legal framework for insurers to offer cover against losses linked to virtual assets, including hacking, employee theft, fraud, and system failures.
This marks the first time Kenya’s insurance sector is formally venturing into cryptocurrency risk coverage, a move seen as a milestone in integrating digital finance into the country’s regulated economy.
Under the proposed rules, the IRA introduces “virtual assets insurance” as a new business class, officially designated as class number 142 among Kenya’s 34 existing insurance sub-classes.
The regulator says this inclusion will promote innovation in insurance products, strengthen consumer protection, and modernize the industry to align with emerging technologies.
“The Kenyan insurance market has adopted the use of technology such as AI chatbots and digital claims platforms,” the IRA notes in the draft regulations.
“However, there are little to no regulations governing such technologies despite the threat of cybersecurity and invasion of privacy.”
The proposal comes at a time when Kenya is among Africa’s leading players in the cryptocurrency market. Data from blockchain analytics firm Chainalysis shows that Kenyans transacted KSh426.4 billion worth of stablecoins in the year ending June 2024, ranking the country fourth globally behind Nigeria, South Africa, and Ghana.
Stablecoins, digital currencies pegged to stable assets such as the US dollar, are increasingly being used for cross-border payments, remittances, and business transactions due to their speed and low transfer costs.
Sending stablecoins costs between 0.5 and 1 percent, compared to 4 to 7 percent charged by banks and traditional remittance services.
From local traders paying for imports to multinationals repatriating profits, digital assets are steadily reshaping Kenya’s financial landscape.
Even companies like Elon Musk’s Starlink reportedly convert Kenyan shilling payments into stablecoins for repatriation to the United States.
Globally, the digital asset insurance market is growing fast, valued at about $2.3 billion in 2023 and projected to reach $3.5 billion by 2032.
Yet, only about 11 percent of crypto holders are insured, according to AM Best, highlighting a vast opportunity for insurers.
By introducing crypto insurance, the IRA aims to position Kenya’s insurance industry at the forefront of digital transformation while safeguarding investors from emerging technological risks.
