Britam pays KSh20.5m in flood claims to 3,038 Tana River households after satellite data trigger

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Britam Connect, the inclusive insurance arm of NSE-listed Britam Holdings, has paid KSh20.5m in flood insurance claims to 3,038 households in Tana River County after this year’s long rains pushed river levels far above normal.

The payout covers households in Sala, Chewele and Madogo wards, the insurer said in a statement dated October 21. The floods displaced 3,127 families in parts of the county, submerging homes and farms and cutting access to essential services.

Many of the affected households rely on livestock, small-scale farming and casual work, which leaves them with little to fall back on when floods wipe out their income.

Paid on river-flow data, not loss assessors

The claims were paid under Britam Mafuriko, a product run through the Index-Based Flood Insurance (IBFI) project. Unlike ordinary cover, it does not send assessors to inspect each farm or home. Instead, it uses satellite imagery, data modelling and agreed river-flow thresholds to decide when a flood qualifies for compensation.

During the March to May long rains, river flows in the insured wards rose to nearly four times their normal levels, passing the policy trigger. Because the policy pays on the highest qualifying flood of the season, Britam waited for the season to end and the final river-flow data to come in before calculating and verifying what each household was owed.

“Floods can destroy the assets and income families depend on, with consequences that extend well beyond the rainy season,” Britam Connect chief executive Evah Kimani said. “Our aim is to make this protection accessible and affordable to communities facing recurring climate shocks.”

Cover stays in place for the short rains

With forecasts pointing to heavier El Niño-related rainfall in the October to December short rains, Britam said the current policies will stay in force until February 2027. If river flows again cross the set thresholds, eligible households could receive a further payout, subject to the policy terms.

The scheme builds on a 2023 Britam pilot in which 300 households in the Upper Tana region received KSh15m after severe flooding. This year’s payout reached about ten times as many households.

The insurer also said most households that previously had fully subsidised cover are now paying part of their own premiums. It sees that as a sign the programme can move away from relying on donors towards a model where families share the cost of protecting themselves against floods that keep coming back.

Who is behind the project

The IBFI project brings together Britam, Risk Shield, Arid Lands Development Focus (ALDEF), Oxfam in Kenya and the County Government of Tana River, with support from the InsuResilience Solutions Fund (ISF). ALDEF, the local delivery partner, handles community engagement and checks who qualifies for payment.

Dr Annette Detken, head of ISF, said the payout showed the value of index-based insurance “in providing financial support when communities need it most”.

Index-based cover remains a small part of Kenya’s insurance market, which is still dominated by motor, medical and life business. Policyholders with ordinary covers can see how the process works in our guide on how to make an insurance claim with CIC, Madison and Britam, while Britam’s customer care numbers, paybill and branches are listed separately. Readers comparing insurers can also check our list of the top 10 insurance companies in Kenya by market share.