The Association of Kenya Insurers (AKI) is urging collaboration by schools and universities, the Ministry of Education and other stakeholders, on a joint strategy to tackle the lack of insurance and risk management in educational institutions.
Proposals include creating insurance packages that bundle fire, theft, accident, and public liability coverage, increasing awareness among leaders in the educational field, and using digital platforms to reach rural schools. Insurers could offer flexible pricing models, including premium payment options aligned with school calendars and simplify proposal forms and insurance documents.
Despite the availability of insurance solutions, many schools remain uninsured or underinsured, leaving parents, school communities and the government to bear the burden of rebuilding. AKI said in a recent report that only 14.6% of schools in the country have non-motor insurance coverage. The report was released following a series of school fires that have claimed lives and destroyed property throughout the country.
Out of 46,322 schools registered at the end of 2023, only 6,784 had non-motor insurance cover, representing just 14.6%. The report is based on data from all Kenyan insurance companies between January and December 2024. Motor insurance for vehicles used by schools was not factored in by AKI in the report.
“Improving insurance uptake among schools will require deliberate and coordinated multi-stakeholder action. Our recommendations are based on a collaborative approach with the Ministry of Education and other relevant stakeholders,” AKI said.
The association attributed the low uptake of insurance to several key factors, including poor risk management, where many schools lack basic safety measures like fire extinguishers and proper emergency exits, and failure to maintain updated records, which complicates the underwriting process.
Lack of awareness is another factor, with school administrators and boards of management often underestimating the value of insurance, viewing it as a non-essential cost. Moreover, they assume that in the event of a crisis, the government or parents will bear the cost of rebuilding, the report said.