What is dollar life insurance?
Dollar life insurance is life cover written and paid out in US dollars, so its value does not fall when the shilling does. Kenyan insurers sell term and whole life only in shillings; dollar cover comes from international insurers and suits families with costs, savings or plans in dollars.
What the shilling has done since 2015
The shilling averaged KES 98.18 to the US dollar in 2015 and KES 129.30 in 2025, and fell as far as KES 160.18 in January 2024.
Source: World Bank (IMF IFS) annual averages; Central Bank of Kenya
A KES 10 million sum assured bought in 2015 was worth about USD 102,000 then; at the October 2026 rate of KES 129.91 it is worth about USD 77,000, nearly a quarter less.
Source: Calculated from World Bank and Central Bank of Kenya rates
The shilling is not a one-way bet: it strengthened by about 7.5% between its 2023 average and 2025.
Worked example: shillings against dollars
Worked example
- KES 10 million of cover, valued at 2015's rate (98.18)
- About USD 101,900
- The same KES 10 million at October 2026's rate (129.91)
- About USD 77,000
- USD 100,000 of cover at 2015's rate
- About KES 9.8 million
- USD 100,000 of cover at October 2026's rate
- About KES 13.0 million
Past exchange rates do not predict future ones, and premiums for dollar cover are in dollars too.
Dollar cover and Kenyan insurers
Kenyan-licensed insurers sell term and whole life cover in shillings; the only dollar-priced life-type product found was a diaspora funeral plan.
Source: Kenyan life insurers' product pages, checked 29 Oct 2026
Money in Kenyan dollar unit trusts grew from KES 5.1 billion in September 2022 to KES 12.3 billion by late 2023 as savers hedged against the shilling.
Source: The EastAfrican (2024)
Kenya has no exchange controls: residents can buy foreign currency and pay premiums abroad through their bank, which keeps supporting documents for transfers above USD 10,000.
Source: Central Bank of Kenya: Guidelines on Foreign Exchange
When dollar cover makes sense
- School or university fees abroad
- A loan, mortgage or business costs in dollars
- Family living abroad
- Savings or income already in dollars
- A large sum you want protected from the shilling for decades
When shilling cover is enough
- Your family's costs are all in Kenya and in shillings
- You want the 15% insurance relief
- The cover is for a Kenyan loan the lender wants assigned in shillings
More on Local vs international
Frequently asked questions
Do Kenyan insurers sell life cover in dollars?
Not term or whole life: Kenyan-licensed insurers sell those in shillings. The only dollar-priced product we found was a diaspora funeral plan. Dollar life cover comes from international insurers.
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.
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.
Can I pay a dollar premium from Kenya?
Yes. Kenya has no exchange controls, so you can pay by bank transfer or card in dollars; banks keep supporting documents for transfers above USD 10,000.
Will my family receive dollars?
The policy pays in its own currency into a bank account; your family can keep the dollars or convert them when they choose.
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 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.
Protect your family's payout from the shilling
Tell us your age and the cover you want in dollars. We compare dollar life plans and send your options within the hour.
Licensed by IRA · No obligation · We reply within 1 hour
Sources (12)
- World Bank (IMF IFS) annual averages; Central Bank of Kenya
- Calculated from World Bank and Central Bank of Kenya rates
- World Bank (IMF IFS) annual averages
- Kenyan life insurers' product pages, checked 29 Oct 2026
- The EastAfrican (2024)
- Central Bank of Kenya: Guidelines on Foreign Exchange
- KRA; PwC Worldwide Tax Summaries (Kenya)
- International life insurers' published product terms, checked 29 Oct 2026
- PCF Regulations (LN 86/2010); The Star (24 Jun 2026)
- Isle of Man Life Assurance (Compensation of Policyholders) Regulations 1991
- 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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