Insurer Britam plans to invest up to Sh1.9 billion ($15 million) in financial and insurance technology startups in Kenya and other markets where it operates, as it expands its venture capital arm amid increasing competition from non-traditional insurers.
Through its incubation hub BetaLab, the insurer plans to invest up to Sh1.9 billion in startups across the seven markets where it operates over the next four years, using a mix of equity and debt financing.
The expansion is meant to diversify its portfolio and reduce its exposure to shocks in the traditional insurance and asset management business, as fintech and insurtech firms increasingly disrupt conventional financial services.
“Today, we’re not just competing with insurance companies. We’re facing mounting competition from several other players, fintechs, insurtechs and many others, so we have to be innovative,” said Simon Wanduga, Britam’s head of telco and fintech partnerships.
“Our plan is that by the end of our current strategic plan, that is between 2026 and 2030, we should have disbursed $15 million, with a 20-30 percent commitment from Britam.”
The commitment from Britam represents the amount the insurer will contribute from its own balance sheet, with the remainder expected to come from fundraising involving other venture capitalists and strategic investors.
Founded in February 2024, BetaLab has so far made one disclosed investment, participating in a Sh5 million seed funding round for digital lender Oye in June last year. Other investments are in the pipeline.
Mr Wanduga said BetaLab will invest between $5,000 and $50,000 in startups, with investment horizons of between five and 15 years, targeting companies from the seed stage through to growth-stage businesses.
Britam’s expansion comes at a time when startup funding in Kenya has slowed after several years of record investment.
According to the Africa Venture Capital Association (AVCA), Kenyan startups raised Sh141 billion in 2025, making the country Africa’s largest venture capital destination.
However, the figure was significantly lower than the record levels recorded in 2024 as global investors pulled back amid higher interest rates and tighter funding conditions.
Despite the slowdown, Kenya remains East Africa’s leading startup ecosystem, driven by strong activity in fintech, climate technology, agritech and health technology, with Nairobi continuing to attract a large share of venture capital flowing into the continent.
In Kenya, Britam is among the first major financial institutions to establish a dedicated corporate venture capital platform focused on startups, reflecting a broader shift by established financial firms to invest in innovation rather than simply compete against it.
Across Africa, the trend is gradually gathering pace as legacy financial institutions seek new growth opportunities while responding to intensifying competition from technology-led firms.
South Africa’s Standard Bank, for instance, established Shyft Ventures, a corporate venture capital arm that invests in African startups developing solutions that complement banking services.
