Britam General Insurance has launched Kenya’s first electric-vehicle (EV) insurance product, tailored to both fully electric and hybrid vehicles, an innovative move aimed at fast-tracking green mobility and strengthening its sustainability agenda in East Africa’s largest economy.
This new product is carefully designed for the specific challenges of EV ownership:
- Battery Protect Cover Extension: Covers replacement or repair costs for the EV’s most expensive component, the battery and electric motor.
- Personal Charging Equipment Cover: Safeguards installed home or private chargers, protecting users from costly replacements.
- Out-of-Charge Recovery: Offers towing services to the nearest charge point if a vehicle runs out of power, particularly critical amid limited charging infrastructure.
Beyond EV-specific risks, the policy retains standard motor insurance benefits:
- Coverage for accidental damage, theft, fire, flooding, malicious damage
- Political violence and terrorism cover, courtesy vehicles, road-rescue services, and excess protection options
- Flexible premiums: Option to pay via lump-sum or affordable monthly instalments.
Notably, the policy extends even to privately used electric motorcycles, expanding accessibility across Kenya’s rapidly growing two-wheeled EV market.
Strategic Alignment with Kenya’s EV Agenda
Britam’s move aligns with Kenya’s draft National e-Mobility Policy, which targets making EVs account for 5% of new vehicle registrations by 2025.
This timing is strategic registration figures highlight the accelerating EV momentum:
- From 2,694 units in 2023 to 5,294 in 2024, and already at 9,047 by May 2025 a remarkable 150% year-on-year rise.
- Notably, electric motorcycles dominate, accounting for nearly 90% of Kenya’s EV fleet, with 7.1% of new motorcycle registrations in 2024 being electric (up from 3.6% in 2023).
Britam’s product thus emerges at a pivotal moment, when Kenya is transitioning toward sustainable mobility and demand for EV-friendly financial products is rising.
Britam’s Broader Green Shift
This insurance launch dovetails with other sustainability investments by Britam:
- At its Nairobi headquarters: three EV charging stations (six ports total) and a solar carport with 183 panels, demonstrating tangible action on clean energy and mobility.
These initiatives underscore Britam’s commitment to practical support for green infrastructure, not just coverage.
Opportunities and Challenges
Opportunities
- Lowering EV adoption barriers: Customized insurance for costly components like batteries could help assuage ownership fears.
- Inclusive reach: Covering electric motorcycles taps into an underserved but expanding segment of Kenya’s transport ecosystem.
- Reputation edge: Being first to market with an EV-specific product may strengthen Britam’s brand as a forward-looking insurer.
Challenges
- Infrastructure limitations: Kenya still suffers from sparse, uneven charging networks—areas where “out-of-charge” recovery helps, but systemic change is needed.
- Pricing and risk calculation: Batteries and EV repairs remain costly; Britam must balance affordability with risk sustainability.
- Competitor response: Other insurers may soon catch up, sparking pressure to enhance features or lower premiums.
Also read: Why Lauritz Knudsen Chose Kenya as Its Gateway to Africa’s Smart Energy Market
Key signals to watch in the coming months:
- Adoption trends: How many EV or hybrid owners choose Britam’s policy? High uptake would signal a market gap filled.
- Customer experience: Speed and satisfaction of claims especially battery and towing claims will be critical in building trust.
- Market responses: Will other insurers launch similar tailored EV policies? Competition could drive innovation.
- Infrastructure developments: Expansion of charging networks and service facilities will affect product attractiveness and risk models.