Family Bank has launched a new medical cover targeting SMEs, households and individual customers, marking its entrance to the growing health insurance market for small businesses.
The lender, through its subsidiary Family Bank Bancassurance Intermediary Limited (FBBI), has partnered with APA Insurance to roll out Family Afya, a comprehensive medical insurance product designed to help customers cope with rising healthcare costs.
The product offers inpatient and outpatient cover, maternity services, dental and optical care, as well as treatment for chronic illnesses, including cancer.
The bank is targeting a largely uninsured segment of the economy, with SMEs employing nearly 78 per cent of Kenya's working population.
At the same time, an estimated 81 per cent of Kenyans do not have health insurance, leaving millions of households and workers exposed to potentially crippling medical bills.
The bank says the gap presents a significant opportunity for insurers and financial institutions seeking to expand access to medical cover beyond large corporations and formal employers.
“There is a significant gap in affordable, comprehensive health insurance for SMEs, many of whom remain uninsured and either lack access to timely healthcare or are forced to pay medical expenses out of pocket,” said Family Bank Bancassurance Intermediary Limited General Manager Erick Muriungi.
He said Family Afya will give SMEs access to medical insurance at competitive rates while providing flexibility in how businesses and individuals pay for cover.
“Through this insurance, we are providing business owners and their employees with comprehensive medical cover at competitive rates, flexible payment options and convenient access to quality healthcare,” Muriungi said.
The bank said the product is intended to help SMEs manage medical risks while improving employee welfare and strengthening business resilience.
For many small businesses, medical insurance remains a costly benefit, with employers often struggling to balance the cost of cover against rising wages, rent, energy and other operating expenses.
Family Bank said the cover will provide a more accessible option for businesses seeking to offer medical protection to their employees, while also allowing individuals and families to obtain cover tailored to their needs.
The launch comes as the financial services industry is increasingly moving beyond traditional banking products, with lenders seeking new revenue streams through insurance, payments and other financial services.
FBBI has been a key part of Family Bank's expansion into the insurance business. Established in 2008, the subsidiary is licensed and regulated by the Insurance Regulatory Authority to provide bancassurance services.
Through partnerships with insurance companies, FBBI offers general, life and medical insurance products through Family Bank's branch network and digital channels.
The subsidiary generated more than KSh1.94 billion in gross written premiums in 2025 and contributed KSh285 million to the Group's profit before tax, underlining the growing importance of insurance to the bank's business.
Family Bank said it would continue pursuing partnerships aimed at expanding access to insurance and other financial protection products, particularly among SMEs.
The bank's latest offering comes as businesses and households increasingly face the financial impact of illness, with medical expenses remaining one of the leading causes of financial strain for many families.
By targeting SMEs and the retail market, Family Bank is positioning health insurance as not only a healthcare product but also a financial protection tool for businesses and households.
The lender said the expansion was in line with its broader strategy of supporting inclusive economic growth by giving more Kenyans access to affordable financial and insurance services.
