Over the years, I have seen how fintech and insurtech have transformed financial access across Kenya and Africa. Indeed, in Kenya, where insurance has less than 3% penetration, one of the biggest challenges many Kenyans face is financial vulnerability due to unexpected medical expenses. A medical emergency can wipe out savings, push families into debt, and derail financial progress.

This is why the partnership between M-KOPA Kenya and Turaco Insurance is a real game-changer from this perspective. In just one year, they have provided over 1 million Kenyans with free hospital cash insurance, seamlessly embedded into M-KOPA smartphones as part of the “More Than a Phone” digital financial services offering.

Who are M-KOPA and Turaco?

For those unfamiliar with these two companies, here’s some context:

M-KOPA: Financing Progress for Every Day Earners

M-KOPA is one of Africa’s leading fintech innovators, pioneering asset financing solutions for underserved consumers. Since launching in Kenya in 2011, M-KOPA has expanded to Nigeria, Ghana, Uganda, and South Africa, providing more than $1.5 billion in credit to over 5 million customers.

Their unique model allows customers to own essential products like smartphones, solar power systems, and electric motorbikes through an affordable pay-as-you-go financing system. By having daily, weekly, or monthly repayment plans, M-KOPA enables low-income earners to build a digital credit profile, unlocking access to additional financial services like insurance, digital loans, and data subscriptions.

Turaco: Insurtech for the Underserved

Turaco is an insurance technology company (insurtech) on a mission to make insurance affordable and accessible for low-income earners across Africa. Founded in 2018, Turaco operates in Kenya, Uganda, Ghana, and Nigeria, partnering with mobile network operators (MNOs), fintech companies, and financial institutions to distribute affordable health and life insurance to underserved consumers.

By using technology-driven automation, Turaco streamlines policy activation, premium payments, and claims processing, making insurance fast, simple, and affordable. As of this writing, Turaco has over 3.5 million people insured and aims to double the number of insured people worldwide, bringing financial security to those who need it most.

A Safety Net for Every Day Earners

As healthcare costs rise and millions of Kenyans lack medical insurance, this initiative provides a crucial safety net. According to statistics, over 5% of Kenyan households face catastrophic health expenses yearly, and across Africa, 14 million low-income households fall into poverty due to out-of-pocket healthcare costs.

M-KOPA and Turaco launched Hospital Cash insurance in January 2024 as a pilot, fully rolling it out in June 2024 with the launch of the M-KOPA X-20 smartphone. Now, every M-KOPA smartphone includes 12 months of hospital cash coverage, ensuring that customers receive Ksh 1,000 per day if admitted overnight at any Ministry of Health registered hospital — whether public or private.

This benefit is already making a difference, as Boniface Mutiso, an M-KOPA customer, shared:

“Insurance was the biggest reason why I picked my phone… I received Ksh 7,000 two days after my claim, straight to my mobile money. This cover helped me cater for my family needs after I was discharged.”

The Numbers Speak for Themselves

A recent impact report from Turaco and M-KOPA clearly demonstrates the significance of this initiative:

• 75% of customers had no prior health insurance before enrolling in M-KOPA’s “More Than a Phone” offering.
• 50% of customers — including those who haven’t made claims — report investing more in their businesses, thanks to the financial security of having insurance.
• More than 50% of women customers say their financial anxiety has reduced due to the coverage.
• Over 75% of claimants report that the insurance eased their daily financial obligations during hospitalization.

Embedded Insurance: The Future of Digital Financial Inclusion In Africa & Beyond?

Speaking on this milestone, M-KOPA Kenya’s General Manager, Martin Kingori, highlighted the importance of listening to customer needs:

“By listening to our customers, we understand how unexpected medical expenses can derail their progress. Insurance provides that crucial safety net, keeping them on track toward their goals. This aligns perfectly with our mission to finance progress for ‘Every Day Earners.’”

Similarly, Ted Pantone, CEO of Turaco, emphasized the bigger vision:

“Our mission is to make insurance more accessible and affordable. Our vision is to insure the next billion people, doubling the number of insured individuals globally. This partnership with M-KOPA is a powerful example of how embedded insurance can drive impact and financial resilience.”

Scaling to More Markets

Building on this success, M-KOPA and Turaco are now expanding the “More Than a Phone” insurance offering beyond Kenya, with Ghana being the next market on their roadmap.

This partnership shows that embedded insurance in everyday products can unlock new possibilities for financial inclusion. By having affordable access to digital financial services, underserved communities in Kenya and the rest of Africa can build resilience and secure their financial futures.