By 
Why SME Health Insurance Makes Business Sense
By Sylvester Ouma, General Manager, Retail and SME, Jubilee Health Insurance
SMEs Are Kenya’s Backbone, But Workers Remain Unprotected
Small and medium-sized enterprises (SMEs) created 90% of the 782,300 new jobs in 2024, according to the Kenya National Bureau of Statistics (KNBS). Kenya has over 7.4 million micro, small, and medium-sized enterprises, employing about 14.9 million people. That’s nearly 40% of the country’s GDP.
This sector is the engine of Kenya’s economy. Still, most SMEs are informal. As a result, millions of employees lack basic benefits, like insurance, despite global standards set by the International Labour Organization (ILO).
The ILO advocates for employment injury insurance (EII) and broader voluntary coverage. Yet, only 33.9% of the global workforce is protected. Expanded policies would cover 39.4%, offering greater safety nets.
In Kenya, health insurance remains low, with only 2.4% penetration. Many people see it as expensive or complicated. Only 19% of the population is insured, leaving many SME workers without a safety net. When illness strikes, it hurts both the worker and the business.
Why SME Health Insurance Makes Business Sense
Health Cover: From Extra Cost to Competitive Edge
Many SMEs view health insurance as a luxury. But the cost of not having it can be even higher. Businesses lose money when workers are sick through lost productivity, delayed projects, and the cost of temporary replacements.
In some cases, companies still pay sick leave, adding more pressure. Research shows that good workplace wellness programs can reduce absenteeism by up to 26% and boost job satisfaction by 15%.
Health insurance is not just a human resource issue it’s a business strategy. Resilience isn’t just about finances. It’s also about people.
At Jubilee Insurance, we’re working to make insurance simple, affordable, and accessible. We use mobile tools, SACCOs, community partners, and telcos to reach gig workers, MSMEs, and low-income earners. People can now get insurance when buying data, fueling motorbikes, or taking rides seamlessly.
Affordable SME health plans now allow businesses to start with as few as three employees. Others offer flexible, monthly payment plans tailored to cashflow.
We must drop the idea that insurance is only for corporates. It’s now within reach and it’s becoming a competitive advantage. Globally, the SME insurance market is growing. It’s expected to rise from $19.27 billion in 2024 to $25.65 billion by 2033.
SMEs need protection from financial, legal, and operational risks. Health insurance helps build that resilience. And protecting employees is one of the smartest business moves a company can make.
Comments