Local or international life insurance?
Local life insurance from an IRA-licensed Kenyan insurer pays in shillings, qualifies for 15% tax relief and is covered by Kenya's compensation fund. International life insurance pays in US dollars, pounds or euros, offers much higher limits and moves with you abroad, but gives up the relief. Choose by where your family's costs are, how much cover you need and whether you may move.
Local and international life cover side by side
| Local (Kenyan insurer, KES) | International (USD, GBP, EUR) | |
|---|---|---|
| Regulated by | Insurance Regulatory Authority (Kenya) | The insurer's home regulator |
| Currency | Kenya shillings | US dollars, pounds or euros |
| Published maximum | KES 80 – 100 million (about USD 616,000 – 770,000) | USD 5 million; USD 20 million+ for high-value cases |
| Terms | 1 – 30 years; cover to age 75 – 80 | 1 – 35 years, or renewed every year |
| Premium basis | Usually level for the term | Level for the term, or repriced every year |
| If you move abroad | Depends on the policy's territory terms | Built to move with you, apart from listed countries |
| Medicals | Above set limits, e.g. KES 5 – 15 million | Often none under about USD 750,000 and age 50 |
| Claims | Kenyan documents, paid in shillings | Authenticated documents, paid in the policy currency |
| If the insurer fails | Policyholders Compensation Fund, up to KES 500,000 | The home-country scheme, e.g. Isle of Man up to 90% |
| Tax relief | 15% of premiums, up to KES 60,000 a year | Not available |
- Local (Kenyan insurer, KES)
- Insurance Regulatory Authority (Kenya)
- International (USD, GBP, EUR)
- The insurer's home regulator
- Local (Kenyan insurer, KES)
- Kenya shillings
- International (USD, GBP, EUR)
- US dollars, pounds or euros
- Local (Kenyan insurer, KES)
- KES 80 – 100 million (about USD 616,000 – 770,000)
- International (USD, GBP, EUR)
- USD 5 million; USD 20 million+ for high-value cases
- Local (Kenyan insurer, KES)
- 1 – 30 years; cover to age 75 – 80
- International (USD, GBP, EUR)
- 1 – 35 years, or renewed every year
- Local (Kenyan insurer, KES)
- Usually level for the term
- International (USD, GBP, EUR)
- Level for the term, or repriced every year
- Local (Kenyan insurer, KES)
- Depends on the policy's territory terms
- International (USD, GBP, EUR)
- Built to move with you, apart from listed countries
- Local (Kenyan insurer, KES)
- Above set limits, e.g. KES 5 – 15 million
- International (USD, GBP, EUR)
- Often none under about USD 750,000 and age 50
- Local (Kenyan insurer, KES)
- Kenyan documents, paid in shillings
- International (USD, GBP, EUR)
- Authenticated documents, paid in the policy currency
- Local (Kenyan insurer, KES)
- Policyholders Compensation Fund, up to KES 500,000
- International (USD, GBP, EUR)
- The home-country scheme, e.g. Isle of Man up to 90%
- Local (Kenyan insurer, KES)
- 15% of premiums, up to KES 60,000 a year
- International (USD, GBP, EUR)
- Not available
Both kinds of insurer pay claims
In the first quarter of 2024 Kenyan life insurers paid 116,981 claims worth KES 20.66 billion and declined 198.
International insurers pay claims in the policy currency into a bank account, often one in the beneficiary's country of tax residence; one reports an average of 72 hours to pay life claims.
Source: International life insurers' published product terms, checked 29 Oct 2026
The case for international cover is currency, limits and portability, not that Kenyan insurers do not pay.
Who should choose local, international or both
| Your situation | Our usual suggestion |
|---|---|
| Earn and spend in shillings; cover under KES 50 million | Local |
| Want the 15% tax relief and the Kenyan complaints route | Local |
| Children to educate abroad, or dollar loans or savings | International |
| Expatriate in Kenya, or a Kenyan living abroad | International |
| Need more than about KES 100 million | International |
| Mortgage in Kenya and a family that may move | Both: local for the loan, international for the family |
- Our usual suggestion
- Local
- Our usual suggestion
- Local
- Our usual suggestion
- International
- Our usual suggestion
- International
- Our usual suggestion
- International
- Our usual suggestion
- Both: local for the loan, international for the family
What the protection schemes cover
The Policyholders Compensation Fund pays policyholders of a failed licensed insurer up to KES 500,000 per claimant (raised from KES 250,000 in 2026). It covers Kenyan policies only, funded by a 0.25% levy on premiums.
Source: PCF Regulations (LN 86/2010); The Star (24 Jun 2026)
Under the Isle of Man's Life Assurance (Compensation of Policyholders) Regulations 1991, policyholders of an Isle of Man life company are protected for up to 90% of the insurer's liability, wherever they live.
Source: Isle of Man Life Assurance (Compensation of Policyholders) Regulations 1991
The UK's Financial Services Compensation Scheme pays 100% of long-term insurance claims, but only where the risk is in the UK, Gibraltar, the Channel Islands or the Isle of Man, so not for people living in Kenya.
Source: FSCS: what we cover; PRA Rulebook, Policyholder Protection
Whole life or term, local or international?
- Term buys the most cover for the money in either currency
- Whole life always pays out and suits estate planning; international whole of life runs to about USD 7.5 million
- Many families combine term for the working years with a smaller whole life policy
Frequently asked questions
Should I buy local or international life insurance?
Local shilling cover suits costs in Kenya, a budget in shillings and the 15% tax relief. International cover suits anyone who wants the payout in dollars, needs more than about KES 100 million, may move abroad, or has family or school fees abroad. Many families hold both.
What does international life cover not pay for?
Each plan lists its exclusions. The usual ones are:
- Suicide in the first year, or two on some plans
- Death from a condition you did not disclose
- War or terrorism in countries your home government advises against visiting
- Death while living in or visiting a country the plan excludes
- Alcohol or drug misuse, and criminal acts
Read the country list and exclusions before you buy, and tell us about any risky job or travel.
Can I have both local and international life cover?
Yes, and many families do: a shilling policy for costs in Kenya and the 15% tax relief, and a dollar policy for larger sums, costs abroad and cover that moves with you.
Do Kenyan insurers pay claims?
Yes. In the first quarter of 2024 Kenyan life insurers paid 116,981 claims and declined 198. The case for international cover is currency, limits and portability, not that local insurers do not pay.
Do I lose anything by choosing international cover?
Three things: the 15% insurance relief (it needs a shilling policy payable in Kenya), the Policyholders Compensation Fund (it covers Kenyan insurers only) and the IRA complaints route. Your protection then comes from the insurer's home-country rules, which can be stronger for large sums.
Is a dollar policy always better?
Not always. The shilling lost about a quarter of its dollar value between 2015 and 2026, but it also strengthened by about 7.5% from 2023 to 2025, and your premiums are in dollars too. Dollar cover matters most when your family's costs are in dollars.
Is international life insurance legal in Kenya?
Insurance on someone living in Kenya with an insurer outside Kenya needs the Commissioner of Insurance's written approval under the Insurance Act; a policy is not void just because that step was missed. We explain how your cover is arranged before you apply.
See both side by side for you
Tell us where you live, your age and the cover you want. We quote a Kenyan plan and an international plan so you can compare real figures.
Licensed by IRA · No obligation · We reply within 1 hour
Sources (12)
- Prudential Life Kenya: PRUTerm; Britam Life: Tegemeo
- International life insurers' published product terms, checked 29 Oct 2026
- Kenya Ministry of Foreign Affairs: authentication; HCCH status table
- PCF Regulations (LN 86/2010); The Star (24 Jun 2026)
- Isle of Man Life Assurance (Compensation of Policyholders) Regulations 1991
- KRA; PwC Worldwide Tax Summaries (Kenya)
- The Star (19 Jun 2024), citing the IRA
- FSCS: what we cover; PRA Rulebook, Policyholder Protection
- Calculated from World Bank and Central Bank of Kenya rates
- World Bank (IMF IFS) annual averages
- Insurance Act Cap 487, s.20 (Kenya Law)
- Insurance Act Cap 487, s.2 (Kenya Law)
Facts and published prices checked 28 Oct 2026; last reviewed October 2026 by Naveah Capital. Prices shown are insurers' published starting prices and planning estimates in Kenya shillings; they are not a quote. Naveah Capital Insurance Agency is an IRA-licensed insurance agency in Nairobi; this page is general information, and your policy wording decides your cover.
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