• Kenya proposes crypto risk insurance to protect against theft, fraud

• Draft law creates new "digital asset insurance" category in sector

• Move aligns insurance with Kenya’s growing crypto adoption, $3.3B traded
  

Kenya's Insurance Regulatory Authority (IRA) published draft amendments on Wednesday, Oct. 22, 2025, introducing coverage for risks associated with cryptocurrency holdings. The move aims to protect consumers against potential losses arising from fraud, hacking, or theft.

Under the proposed rules, the IRA is classifying "digital asset insurance" as a new subcategory of business, officially designated as number 142 among the country's existing insurance subcategories.

The regulator stated the measure is intended to promote innovation in insurance products, strengthen consumer protection, and modernize the sector to align it with emerging technologies.

Analysts view the initiative as a major step toward integrating digital finance into the local economy, particularly since Kenya is a key player in the African cryptocurrency market.

According to data from Chainalysis, an expert in blockchain data analysis, the East African nation recorded $3.30 billion worth of stablecoin transactions between July 2023 and June 2024. Furthermore, an estimated 6.1 million Kenyans, or 10.71% of the population, held cryptocurrencies in 2022, according to the platform Triple-A.

Kenyan economic actors increasingly use cryptocurrencies for cross-border payments, remittances, and commercial transactions due to their speed and low transfer costs.

Globally, the insurance sector has historically been hesitant to cover crypto-related risks due to regulatory uncertainties surrounding digital assets and the high frequency of fraud and hacking incidents.

According to the American rating agency AM Best, only about 11% of cryptocurrency holders worldwide are insured, underscoring the enormous opportunity for insurers willing to navigate the complexities of the crypto world. International players like Lloyd's of London, Chubb, and specialized companies such as Coincover and Evertas already offer crypto insurance products.

Walid Kéfi