Insurance in Kenya is often misunderstood. Many people avoid it because of hearsay, misconceptions, or half-truths. Unfortunately, these myths can leave families vulnerable when disaster strikes.
In this article, we bust 10 common insurance myths in Kenya—so you can make smarter financial decisions and protect what matters most.
1. “Insurance is Only for the Rich”
Truth: Insurance is for everyone. NHIF contributions start from as low as KSh 500 per month, and third-party car insurance is legally required for all motorists.
2. “It’s Too Expensive”
Truth: Compared to the cost of medical bills or repairing a car after an accident, premiums are far cheaper. Insurance saves you money in the long run.
3. “NHIF is Enough for My Health Needs”
Truth: NHIF is a great foundation, but it doesn’t cover everything (like specialized treatment in private hospitals). Combining NHIF with private insurance offers better protection.
4. “My Car Insurance Covers Everything”
Truth: Not always. Comprehensive insurance has exclusions (like terrorism, riots, or using your car for Uber without declaring it). Always read the fine print.
5. “Life Insurance is a Waste of Money”
Truth: Life insurance provides financial security for your family in case of death or disability. It’s one of the most important covers you can buy.
6. “Insurance Companies Never Pay”
Truth: Most insurers pay—when claims are valid. Rejections usually happen due to late reporting, missing documents, or undisclosed facts.
7. “I Don’t Need Insurance, I’m Healthy/Young”
Truth: Accidents and illnesses don’t discriminate. Getting cover while young is actually cheaper and easier.
8. “Third-Party Car Insurance Covers My Vehicle Too”
Truth: No—it only covers damage/injury caused to third parties. If you want cover for your own car, you need comprehensive or third-party fire & theft insurance.
9. “Insurance is Too Complicated”
Truth: Insurance terms may seem complex, but with the right advice (like from Bima Mtaani 😉), it’s simple. The key is asking questions before signing.
10. “It’s Better to Save Money Than Buy Insurance”
Truth: Savings are important, but they can’t cover major losses like hospital bills of KSh 1 million or rebuilding after a house fire. Insurance gives financial protection beyond savings.
Conclusion
Don’t let myths stop you from protecting yourself and your family. Insurance in Kenya is not only affordable but also essential for financial security.
👉 The next time someone tells you “insurance doesn’t work”, you’ll know the truth—and you might just help them make a smarter decision too.
