British-American Investments Company (Britam Holdings Plc) has invested KES 5 million ($38,000) in Oye, a Kenyan fintech startup offering credit and microinsurance products to low-income earners, primarily targeting the country’s fast-growing Boda Boda riders and the gig economy.
Britam aims to use Oye to reach in the underserved microinsurance segment through innovative distribution models. Oye delivers usage-based insurance embedded within everyday transactions—starting with boda boda (motorcycle taxi) riders who purchase fuel at partnered petrol stations.
Embedded Insurance for the Informal Economy
Founded in 2020, Oye offers riders personal accident coverage automatically when they meet fuel purchase thresholds. The policy includes outpatient treatment, daily inpatient allowances, income replacement during recovery, and last-expense support. The model is designed to offer flexible, real-time protection at no upfront cost to the user.
Oye’s approach has shown rapid traction. According to company data, the volume of policies issued has grown 13-fold in just five months, driven by rising fuel sales at participating stations and increased rider engagement.
The company’s embedded model reflects a broader global trend in insurtech, where financial protection is bundled seamlessly into consumer services—such as payments, ride-hailing, and e-commerce.
Insurance Penetration and Market Opportunity
Insurance penetration in Kenya stands at just 2.4% of GDP, according to the Insurance Regulatory Authority (IRA), with microinsurance considered one of the most promising avenues for industry expansion. A significant portion of the population operates in the informal sector, often lacking access to traditional insurance products due to cost, trust, or relevance.
Britam’s move comes as part of its wider digital transformation strategy. In 2024, the firm launched Britam Connect, a digital-first subsidiary focused exclusively on low-income and informal sector consumers.
Britam Connect is not just looking at Kenya; it has set an ambitious goal of reaching 25 million people across Africa in the next five years. The company plans to scale its impact by working with InsureTech firms, SACCOs, and development organizations to create innovative risk protection solutions. Oye is one of the partnerships.
Fintech-Insurance Collaboration on the Rise
The investment in Oye marks one of a growing number of collaborations between traditional insurers and fintech startups across East Africa. Similar models have emerged in sectors such as agriculture, healthcare, and transportation—where mobile-based and embedded solutions are proving more effective at onboarding first-time users than legacy channels.
As regulatory frameworks for digital insurance continue to evolve, analysts expect more hybrid partnerships to emerge between legacy financial institutions and agile technology firms.
Britam’s investment in Oye reflects a calculated bet on the future of embedded insurance in Kenya’s informal economy. By aligning with a nimble, tech-driven partner, the insurer is positioning itself to serve a vast, underserved market that could define the next decade of growth in African financial services.