Access to financial security remains a challenge for many low-income earners in Kenya, particularly when unexpected life events threaten their livelihoods.

Recognizing this gap, Rafiki Microfinance Bank and Turaco Microinsurance Kenya recently joined forces to provide affordable and accessible insurance solutions tailored for underserved communities.

This strategic partnership integrates microinsurance directly into Rafiki’s loan products, ensuring that borrowers are protected from financial hardships arising from death, disability, and job loss.

A Comprehensive Approach to Financial Security

Through Rafiki Microfinance Bancassurance Intermediary, this partnership eliminates the need for borrowers to purchase separate insurance policies by including a comprehensive insurance package within their loan agreements.

This bundled approach offers two key coverage options:

Hospital Cash Cover – Provides financial relief by covering daily expenses incurred during hospitalisation, ensuring that policyholders can focus on recovery without the added stress of financial burdens.
Last Expense Cover – Offers crucial support for bereaved families by covering funeral costs, easing the economic strain of losing a loved one.

This integration not only makes insurance more accessible but also strengthens financial resilience among microfinance clients, who form a significant portion of Kenya’s informal economy.

Turaco Marks a Milestone as Kenya’s First Insurtech Underwriter

Affordable Protection for All

One of the standout features of this initiative is its affordability. With premiums starting as low as Ksh20, borrowers can secure coverage that protects their outstanding loan balances and provides additional financial support during emergencies.

This cost-effective model ensures that even low-income individuals can access essential insurance benefits, reducing the financial shock associated with unforeseen events.

“At Rafiki Microfinance Bank, we are committed to empowering our customers with financial solutions that go beyond banking,” said Joseph Njuguna, Managing Director of Rafiki Microfinance Bank.

“Through this partnership, we are not only protecting our clients from financial shocks but also ensuring their peace of mind. By embedding microinsurance into our loan products, we are making insurance more accessible and affordable for underserved communities.”

Strengthening Kenya’s Financial Ecosystem

Microfinance institutions (MFIs) play a key role in Kenya’s financial landscape, acting as a lifeline for individuals and small businesses that may lack access to traditional banking services.

With thousands of Kenyans depending on MFIs for credit and financial support, integrating microinsurance into loan products is a crucial step toward strengthening financial resilience at the grassroots level.

“Rafiki Microfinance Bank is an ideal partner for Turaco because of its deep commitment to financial inclusion and its strong relationship with underserved communities,” said Ted Pantone, CEO of Turaco.

“By working together, we can scale our impact and ensure that more Kenyans have access to affordable insurance solutions that provide real financial security when they need it most.”

10 Million Smallholder Farmers to Get Insurance Coverage Through PULA Foundation Recent Funding

A Future of Financial Inclusion and Resilience

This collaboration is more than just a business initiative; it represents a shared vision of a financially secure Kenya where every individual, regardless of their income level, can weather financial storms without falling into debt.

By bundling insurance with microfinance loans, Rafiki Microfinance Bank and Turaco are setting a precedent for how financial institutions can innovate to address real-life challenges faced by the communities they serve.

As Kenya continues to push for greater financial inclusion, partnerships like these serve as a symbol of progress, demonstrating that financial services can be both accessible and impactful.

Together, Rafiki Microfinance Bank and Turaco are taking significant strides toward a future where every Kenyan can borrow with confidence, knowing they are protected against life’s uncertainties.