1 Million More Kenyans Insured Through M-KOPA-Turaco Partnership

One million Kenyans have received insurance protection over the past year, through an innovation insurance product offered between pay as you go smartphone provider M-KOPA - and Turaco, a Kenyan-based insurtech. 

Kenya continues to grapple with low insurance penetration, with only 3.1% of the population covered outside of social health insurance, according to a 2022 report by the Insurance Regulatory Authority (IRA). 

This leaves 70.5% of households unprotected, exposing millions to financial vulnerability in the event of medical emergencies. However, a new wave of innovation in digital financial services is helping to bridge this gap—by embedding health insurance into everyday products.

One of the most notable developments is the integration of health insurance into smartphones through M-KOPA’s “More Than a Phone” offering. By bundling a year of inpatient health cover with its smartphones, M-KOPA and Turaco extend financial protection for many Kenyans who might otherwise go uninsured. 

Burden of Medical Bills

Martin King’ori, M-KOPA General Manager, said the success of the initiative can be credited to embedding a medical insurance product on M-KOPA smartphones. Any Kenyan who purchases an M-KOPA smartphone gets free inpatient medical cover of Ksh1,000 per day.

King’ori added that the product had helped and uplifted many families given the financial risks that medical bills pose to many Kenyans.

“By embedding health insurance into our smartphones through our ‘More Than a Phone’ offering, we’ve transformed how everyday earners access financial protection. We understand that traditional insurance models often fail to serve our customers – with high premiums, complex processes, and delayed payouts,” the manager said. 

“By making insurance both accessible and affordable, we’re helping our customers build resilience against financial setbacks, keeping their progress on track,” King’ori added. 

Read also: All You Need to Know About the New M-KOPA X20 Smartphone

Equally, M-KOPA credited the success of the health insurance product to Turaco, its partner, for facilitating the timely response and payment of insurance claims.

Turaco CEO Ted Pantone noted that the Free Hospital Cash Cover was intentionally designed to be simple and accessible to the majority of Kenyans. 

"This product is built on our belief that insurance should be accessible, affordable, and impactful. By embedding health cover into M-KOPA smartphones, we’ve made health insurance available to underserved families in a way that is simple and easy to use," Pantone observed.

Real-Life Impact

The impact of income protection is confirmed by beneficiaries who detailed how the insurance cover was effective and efficient when they became sick.

Douglas Mauti, a boda boda rider in Nairobi, revealed that he received Ksh5,000 after he was hospitalized for a cold-related illness.

“When I was admitted, I quickly contacted Turaco and was amazed at how simple the process was. I received my payment of Ksh5,000, which helped me buy food, get medicine, and manage my daily expenses while I couldn’t work,” he stated.

Likewise, Sharon Owuor, a salon owner in Dandora detailed that she received Ksh5,000 after her treatment in hospital. She used the money to pay rent and take care of other household needs.

“I bought the M-KOPA X2 because an agent explained I could put down a deposit and also get insurance. I contacted Turaco on WhatsApp after being hospitalized, submitted the required documents, and received Ksh5,000 which I used to cover rent and essentials,” Sharon added.

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Free Hospital Cash Cover in Numbers 

• More customers have been covered - Three-quarters of customers did not have health insurance
• Over 60 per cent of customers feel that the insurance has relieved them of financial burden and they can now attain their financial goals.
• 50 per cent of customers who have made claims on the platform have put the money towards medical bills while 20 per cent of customers have used the money to invest in their businesses. Another 20 have used it on household expenses.

Read also: Smart Money. Smart Choice: Is the M-KOPA X20 Really Value for Money?

Benefits M-KOPA Free Hospital Cash product

• Beneficiaries get inpatient coverage of Ksh1,000 per day.
• Kenyans who purchase M-KOPA smartphones are automatically onboarded to the service once they purchase a phone.
• Cash claimed by the patients is sent straight to the customers’ mobile money account.