Singapore unicorn acquires Kenyan insurance platform

Singapore-based insurtech unicorn Bolttech has acquired mTek, a Kenyan digital insurance platform, in a move designed to further tap into East Africa’s rapidly evolving but under-insured market. The acquisition positions Bolttech to capitalise on a region where insurance penetration remains significantly below the global average, offering substantial scope for providers capable of driving affordability through digital innovation.

mTek operates as a digital aggregator, allowing customers to compare, purchase, and manage policies – ranging from vehicle to medical and device insurance – directly via its app. The company also offers embedded insurance solutions. Unlike traditional insurance sold as a standalone product, this model allows consumers to purchase coverage seamlessly at the point of sale for other goods. Much like adding travel cover when booking a flight, mTek’s technology allows a user buying a smartphone to add theft and damage protection with a single click at checkout, without needing to fill out separate paperwork. In September 2025, mTek strengthened this vertical by signing a deal with Mastercard to launch embedded solutions across East Africa, integrating tailored coverage directly into the payments giant’s consumer and SME card offerings.

Bolttech – which provides the digital infrastructure connecting insurers, distributors, and consumers globally – entered the Kenyan market earlier this year through a partnership with LOOP, the digital banking service from NCBA Bank. Together, they launched LOOP Flex, a product enabling customers to purchase devices via monthly instalments. The solution pairs flexible financing with built-in device insurance, covering theft, accidental damage, and mechanical breakdown.

Insurance penetration in Kenya remains low at 2.4% of GDP, compared to a global average of 7.4%. The market is dominated by the non-life sector, within which medical insurance accounts for 36% of premiums and motor insurance 29%. According to the 2024 FinAccess Household Survey, the primary barrier to insurance uptake in Kenya is not a lack of demand, but limited access. Over 63% of respondents cited affordability as the main reason for being uninsured, while nearly 20% pointed to a lack of awareness. These figures underscore a significant gap in the market, creating an opening for providers who can offer lower-cost, simplified products.

Kenya’s established mobile money ecosystem, anchored by M-Pesa, provides a fertile environment for the increased adoption of insurtech. Beyond merely improving operational efficiencies – such as faster claims settlement and enhanced fraud detection – these technologies are now unlocking the market for underserved demographics.

A critical development has been the shift towards flexible payment models. In the health insurance sector, platforms linked to mobile wallets now allow consumers to pay via micro-premiums, removing the burden of larger payments. This structure better aligns with the cash-flow realities of the mass market. Furthermore, the deployment of artificial intelligence is ending the era of generic, standardised policies. By parsing alternative data – ranging from income flows and mobile transaction histories to health behaviours – insurers can now engineer bespoke products. This data-led approach ensures coverage is tailored to the specific risk profiles and financial circumstances of individual users, rather than forcing a one-size-fits-all solution.

 

References

'Verod-Kepple Africa Ventures and Founders Factory Africa invest in mTek', Africa Private Equity News, 22 March 2024

'Singapore’s Bolttech valued at $2.1 billion', Yahoo Finance, 20 December 2024

'Bolttech enters Kenya via strategic partnership with LOOP', Bolttech, 29 August 2025

'Transforming health insurance with AI in Kenya', Clyde & Co, 03 September 2025

'Mastercard and Hillcroft (mTek) collaborate to launch embedded insurance solutions across East Africa', Mastercard, 30 September 2025

'Kenya Listed Insurance H1’2025 Report', Cytonn Report, 12 October 2025

'mTek becomes part of Bolttech', Bolttech, 03 December 2025

'Kenya’s insurance sector records steady growth in second year of IFRS-17 adoption', Association of Kenya Insurers, 11 December 2025