In Kenya, conversations about death are often cloaked in cultural taboos. Yet, when death strikes, families are thrust into a whirlwind of grief, coupled with intense financial strain. The costs associated with funerals—ranging from mortuary fees to catering for mourners—can be overwhelming.
Traditional African customs place great emphasis on hospitality during mourning. Families are expected to honour the deceased by treating guests with utmost care, which often involves slaughtering livestock and depleting household food reserves. This practice, while culturally significant, places a heavy financial burden on bereaved families. The societal expectation to organise lavish funerals has led many into debt, with some resorting to loans or selling assets to meet the expenses.
A 2018 Ipsos survey revealed that funeral costs for middle-class families in Kenya range from KSh 50,000 to KSh 300,000. However, according to a report by the Association of Kenya Insurers, only 3% of Kenyans have last expense insurance. This low uptake is largely attributed to limited awareness and deep-seated cultural perceptions surrounding death and insurance.
Beyond funeral costs, many working Kenyans are also burdened by the so-called “black tax”—the financial responsibility of supporting extended family members. This obligation often hinders personal financial growth, making it difficult to save or invest in one’s own development.
Last expense insurance offers a practical and dignified solution. This insurance product provides a lump sum payout upon the policyholder’s death, specifically to cover funeral and burial expenses. It not only delivers immediate financial relief but also reduces the need for emergency fundraising, high-interest loans, or asset liquidation during a time of mourning. Importantly, it offers peace of mind, allowing families to honour their loved ones without sinking into financial distress.
For employed individuals, particularly those supporting extended families, this insurance acts as a financial buffer. It enables them to meet cultural and familial obligations without compromising their own economic stability.
Despite its many benefits, the uptake of last expense insurance in Kenya remains dismally low. Cultural stigma and limited financial literacy continue to impede its adoption. Financial institutions have a vital role to play in shifting this narrative. By promoting financial education and simplifying the enrolment process, banks and insurance companies can help alleviate the economic hardships that often accompany death.
Death is an inevitable part of life. Though a difficult subject, preparing for it is essential. Last expense insurance serves as a vital safety net, enabling families to meet cultural expectations without facing financial ruin. Embracing such financial tools is a step towards building resilience and securing economic stability.
By integrating this insurance into our financial planning, we can reclaim our cultural dignity without plunging into debt. We can honour our loved ones in death without destroying the futures of those left behind. We can ease the burden on our youth, allowing them to build sustainable lives while still supporting their elders.
To achieve this, we must break the silence around death. We must normalise conversations about funeral planning and financial preparedness. We must teach our children to save not only for weddings or holidays, but also for the inevitable and unpredictable moments that life brings.
Immaculate Akinyi is a Product Manager, Insurance and Asset Management at Stanbic Bank Kenya.
