Rafiki Microfinance Bank has entered into a strategic partnership with Turaco Microinsurance Kenya (T/A Turaco). This collaboration seeks to integrate microinsurance into Rafiki Microfinance Bank’s loan offerings, ensuring that customers have access to affordable and innovative insurance solutions that protect them against financial uncertainties.
By embedding microinsurance within its financial services, Rafiki Microfinance Bank is providing borrowers with crucial coverage against life-altering events such as death, disability, or job loss. This initiative guarantees that outstanding loan balances are settled in the event of an unforeseen incident, easing financial burdens on families and reducing the risk of loan defaults.
Additionally, the new insurance package includes two essential riders: the Hospital Cash Cover, which provides financial support for daily expenses during hospitalization, and the Last Expense Cover, designed to assist families with funeral costs. These added benefits ensure that customers are not only protected from financial distress but also receive timely support in times of crisis.
One of the standout features of this initiative is its affordability. With premiums starting as low as Ksh20, the program makes essential financial protection accessible to low-income borrowers, significantly increasing insurance penetration in Kenya. The partnership eliminates the need for customers to seek separate insurance policies, offering a seamless and convenient solution that enhances financial resilience at the grassroots level.
Joseph Njuguna, Managing Director of Rafiki Microfinance Bank, emphasized the bank’s commitment to providing holistic financial solutions, stating, “At Rafiki Microfinance Bank, we are committed to empowering our customers with financial solutions that go beyond banking. Through this partnership, we are not only protecting our clients from financial shocks but also ensuring their peace of mind. By embedding microinsurance into our loan products, we are making insurance more accessible and affordable for underserved communities.”
Microfinance institutions play a critical role in Kenya’s financial landscape by catering to individuals and small businesses that may not have access to traditional banking services. With many Kenyans relying on microfinance for credit and financial support, the integration of microinsurance strengthens financial stability and fosters long-term economic resilience.
Ted Pantone, CEO of Turaco, highlighted the importance of this partnership, stating, “Rafiki Microfinance Bank is an ideal partner for Turaco because of its deep commitment to financial inclusion and its strong relationship with underserved communities. By working together, we can scale our impact and ensure that more Kenyans have access to affordable insurance solutions that provide real financial security when they need it most.”
Through this collaboration, Rafiki Microfinance Bank and Turaco Microinsurance are setting a precedent for financial innovation in Kenya. By aligning their efforts to enhance insurance accessibility, they are paving the way for a more financially secure future for underserved communities, ensuring that Kenyans can safeguard their livelihoods against unexpected hardships.
