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Strategic Leadership and Insurance Penetration in Kenya

Author

Listed:
  • Abdullahi Mohamed Abdi

    (Management University of Africa, P.O Box 29677-00100, Nairobi Kenya)

  • Emmanuel Awour

    (Management University of Africa, P.O Box 29677-00100, Nairobi Kenya)

  • Dr. James Mwikya

    (Kirinyaga University, P.O Box 143-10300, Kerugoya, Kenya)

Abstract

The insurance system is essential for economic stability and growth by offering financial protection, yet Kenya's low insurance penetration rate of 2.3% as of FY 2022 poses significant challenges for individuals, businesses, and the broader economy. The study was guided by Strategic Leadership Theory. Utilizing a cross-sectional survey design, the research targeted 58 licensed insurance companies in Kenya, employing a census sampling method to survey 232 participants, and data analysed through descriptive and inferential statistics following a pilot study to refine the questionnaire. The objective of the study sought to determine the relationship between strategic leadership and insurance penetration in Kenya. The study results show the correlation coefficient (R) of 0.639 which indicates a strong positive relationship between strategic leadership and insurance penetration. This suggests that as strategic leadership practices improve, insurance penetration is likely to increase. The R Square value was 0.408 meaning that approximately 40.8% of the variance in insurance penetration can be explained by strategic leadership. This indicates a moderate level of explanatory power, suggesting that while strategic leadership is an important factor, other variables not included in the model also contribute to insurance penetration. The study recommends that Kenyan insurance companies prioritize the development and implementation of robust strategic leadership practices to further boost insurance penetration. Investing in leadership training programs focused on vision setting, change management, and innovative market strategies is a key action. While strategic leadership is a significant driver, accounting for a notable portion of the variance in penetration, it is also crucial for companies to conduct further research to identify and address the other factors contributing to the remaining variance.

Suggested Citation

  • Abdullahi Mohamed Abdi & Emmanuel Awour & Dr. James Mwikya, 2025. "Strategic Leadership and Insurance Penetration in Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(8), pages 7539-7550, August.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-8:p:7539-7550
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    References listed on IDEAS

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