Britam has paid Sh20.5 million in flood insurance claims to 3,038 households in Tana River County, following flooding during the 2026 long-rains season, in a payout announced on October 21 by its inclusive insurance arm, Britam Connect.
The payments cover households in Sala, Chewele and Madogo wards, and were made under Britam Mafuriko, an index-based flood cover. Unlike traditional insurance, the product pays out automatically when river flows pass a set threshold, so households do not need to submit claims or wait for assessors.
During the long rains, river flows in the insured wards rose to nearly four times their normal levels, which activated compensation. The floods displaced 3,127 families, submerged homes and farms, and disrupted access to essential services. On average, each household received about Sh6,750.
Britam Head of Operations Connect Norman Gitu said the programme shows the role insurance can play in cushioning vulnerable households against climate-related financial losses. The programme is run with development partners and the county government, and Gitu said it will keep covering eligible households until February next year. If river flows pass the thresholds again, eligible households may qualify for a further payout, subject to policy terms.
The cover is delivered through the Index-Based Flood Insurance project, which brings together Britam, actuarial firm Risk Shield, the Arid Lands Development Focus (ALDEF), Oxfam in Kenya and the Tana River County government, with support from the InsuResilience Solutions Fund.
The product has grown significantly since it started. Britam piloted it in 2023, paying out Sh14.1 million to 300 households in Madogo ward after the floods that hit the county, and said it aimed to reach up to 20,000 households.
Tana River County is highly flood-prone, and the Kenya Red Cross said more than 10,200 households were affected when the river flooded twice in late 2023 and early 2024. Many families who received earlier payouts used them to rebuild homes, restart businesses and buy essentials.
Index-based insurance is seen as a practical way to protect low-income households in regions where traditional claims assessment is costly and slow. It is still a small part of the market, as insurance penetration in Kenya remains low.
