Britam invests KES 5M in fintech Oye to boost insurance and fuel credit access 

In a groundbreaking move set to revolutionize financial inclusion for millions, Britam Holdings Plc (NSE: BRIT), a leading diversified financial services group, through its dynamic innovation hub, BetaLab, has announced a strategic KES 5 million investment in Oye, a pioneering Kenyan fintech startup. This significant partnership is poised to transform how Kenya’s vast network of two million boda boda (motorcycle taxi) riders access essential insurance coverage and much-needed fuel credit, addressing long-standing barriers that have historically excluded this vital sector from formal financial protection.

The collaboration between Britam, a titan in the regional insurance landscape, and Oye, an agile and innovative startup, represents a powerful synergy. It not only signifies a crucial step forward in empowering one of Kenya’s most economically significant yet financially underserved segments but also serves as a compelling blueprint for how established corporations and grassroots technology solutions can coalesce to drive profound social and economic impact across Africa.

Britam and BetaLab: A Vision for Inclusive Innovation

Britam Holdings Plc stands as a formidable force in the East African financial sector, boasting a rich history and a comprehensive portfolio that spans general insurance, life assurance, health insurance, asset management, and property development. With operations extending across Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique, and Malawi, Britam has consistently positioned itself at the forefront of financial services innovation and expansion in the region. Its commitment extends beyond traditional financial products to addressing societal needs through inclusive solutions.

At the heart of Britam’s forward-thinking approach lies BetaLab, its dedicated innovation hub. Established to foster a culture of disruptive thinking and collaborative development, BetaLab serves as an incubator for promising fintech and insurtech startups. The hub’s mission is multifaceted: to identify and nurture innovative solutions, to leverage technology to enhance customer experience, and to extend Britam’s reach into new, often underserved, markets. By actively engaging with the startup ecosystem through incubation programs, mentorship, hackathons, and product development initiatives, BetaLab ensures that Britam remains agile and responsive to evolving market demands, staying ahead of the curve in a rapidly digitizing financial landscape. This model allows Britam to tap into the entrepreneurial spirit and rapid prototyping capabilities of startups, while providing startups with the crucial financial backing, regulatory guidance, and market access that a large corporate entity can offer.

Evah Kimani, Britam’s Director of Partnerships & Digital, succinctly articulated the strategic alignment: “This collaboration is a reflection of Britam’s focus on inclusive innovation. Oye’s model is simple, scalable, and designed around the needs of daily income earners. BetaLab is proud to help take it to the next level.” Her comments highlight Britam’s commitment not just to profit, but to creating sustainable social value by addressing the unique challenges faced by daily wage earners.

Britam’s leadership in the microinsurance sector further underscores this commitment. The company has solidified its position as Kenya’s largest microinsurance provider, extending coverage to over 4 million lives and capturing more than 40% market share in this crucial segment. Microinsurance, characterized by low premiums and tailored coverage for low-income individuals, is essential for building financial resilience among vulnerable populations. Britam’s consistent dedication to expanding access to affordable and flexible insurance solutions for underserved communities aligns perfectly with its broader Environmental, Social, and Governance (ESG) objectives, demonstrating a responsible approach to business that prioritizes both financial performance and societal well-being.

The Boda Boda Economy: A Vital Yet Vulnerable Pillar

To fully appreciate the impact of the Britam-Oye partnership, one must understand the profound significance and inherent vulnerabilities of Kenya’s boda boda sector. Often perceived merely as a mode of transport, the two million boda boda riders represent a dynamic, indispensable, and often overlooked economic powerhouse.

Economic Backbone:

The boda boda industry is more than just transportation; it’s a vital artery of Kenya’s informal economy. These riders provide crucial last-mile connectivity, transporting people and goods, especially in rural and peri-urban areas where traditional public transport may be scarce or inefficient. They facilitate commerce, connect communities to markets, and serve as an essential lifeline for many small businesses. For millions of Kenyan households, being a boda boda rider is the primary source of income, supporting families, funding education, and driving local consumption. The sector contributes significantly to the national GDP through direct earnings, fuel consumption, and related services like repairs and spare parts.

Daily Challenges and Risks:

Despite their vital role, boda boda riders face an array of daunting challenges that underscore their urgent need for financial protection:

• Income Volatility: Most riders operate on a daily income basis, meaning their earnings can fluctuate wildly depending on demand, weather conditions, or unforeseen events. This makes budgeting for fixed expenses like insurance premiums incredibly difficult.
• High Operating Costs: Fuel is a significant daily expense, often consuming a large portion of a rider’s earnings. Additionally, maintenance, repairs, and the eventual replacement of the motorcycle represent substantial capital outlays.
• Alarming Accident Rates: The nature of their work on often poorly maintained roads, coupled with high traffic volumes and long working hours, exposes boda boda riders to significantly higher risks of accidents compared to other professions. Injuries can lead to loss of income, mounting medical bills, and even permanent disability, pushing families into deeper poverty.
• Vulnerability to Theft: Motorcycles are valuable assets and are frequently targeted by thieves, leaving riders without their means of livelihood.
• Lack of Formal Protection: Historically, the informal nature of their employment has excluded most riders from formal social security schemes, pension plans, and traditional insurance products, which are often designed for salaried employees. This leaves them extremely vulnerable to financial shocks.

The social impact of these vulnerabilities is profound. When a boda boda rider is involved in an accident or faces an unforeseen illness, the entire family’s financial stability is jeopardized. Medical bills can quickly deplete meager savings, and the loss of income means children might drop out of school, or basic needs might go unmet. This cycle of vulnerability highlights the critical need for tailored financial solutions that truly understand and address the unique realities of this workforce.

The Oye Platform: Bridging the Gap with Ingenuity

Founded in 2021 by visionary Nairobi entrepreneur Kevin Mutiso, Oye emerged from a deep understanding of the challenges faced by daily income earners in Kenya. Mutiso’s ingenious solution combines a loyalty points system with accessible technology, revolutionizing how a historically underserved demographic can achieve financial security. Oye’s impressive traction since its launch, with over 20,000 insurance covers issued and 45 claims successfully processed, speaks volumes about the efficacy and resonance of its model.

A Revolutionary Points-Based Insurance Model:

The core of Oye’s innovation lies in its unique loyalty points system, designed to seamlessly integrate insurance access into the daily economic activities of boda boda riders. Here’s how it works:

1. Earning Points: Riders earn points for everyday purchases made at Oye’s network of partner merchants. These partners are strategically chosen to align with a rider’s typical spending habits – primarily fuel stations, but also potentially spare parts shops, mechanics, and even local eateries. Every shilling spent at these partner locations accumulates points for the rider.
2. Automatic Qualification: Once a rider accumulates a predetermined number of points (currently 90 points), they automatically qualify for insurance coverage. This eliminates the need for upfront premium payments, which is a major barrier for daily wage earners whose income streams are unpredictable.
3. Seamless Protection: The system effectively transforms routine operational expenses (like fuel) into a pathway for financial protection. Riders don’t “buy” insurance in the traditional sense; they “earn” it through their existing spending patterns. This gamified approach incentivizes participation and makes insurance feel like a reward rather than an additional burden. The psychological aspect of earning something valuable for regular activities is powerful, fostering engagement and loyalty.

This model fundamentally redefines insurance access. Traditional insurance often requires lump-sum payments or regular fixed premiums, which are incompatible with the fluctuating incomes of boda boda riders. Oye’s points-based system is disruptive because it aligns the payment mechanism with the economic reality of its target demographic, making insurance both accessible and affordable.

USSD Technology: The Cornerstone of Inclusivity:

What truly sets Oye apart and underscores its commitment to genuine financial inclusion is its deliberate reliance on USSD (Unstructured Supplementary Service Data) technology. In a country where smartphone penetration is growing but still not universal, especially in rural areas, and where reliable internet access can be a luxury, USSD is a game-changer.

• Universal Accessibility: USSD operates on any feature phone – it does not require internet connectivity or a smartphone app. This means that a boda boda driver in a remote village, with only a basic mobile phone, can still access and participate in the Oye platform. This addresses a critical barrier that often excludes the most vulnerable populations from digital financial services, bridging the digital divide that often leaves many behind.
• Simplicity and Ease of Use: USSD menus are simple, text-based, and intuitive to navigate, requiring minimal digital literacy. This ensures that a wide range of users can easily interact with the platform without complex instructions.
• Real-time Data and Targeted Support: Beyond access, Oye’s platform leverages real-time data collected through USSD interactions. This data enables efficient claims processing, as information can be submitted and verified quickly. Furthermore, the data provides invaluable insights into the unique needs and challenges of boda boda drivers, allowing Oye and Britam to refine and tailor products and support services specifically for this demographic. This data-driven approach allows for rapid iterations and improvements, ensuring the solutions remain relevant and impactful.

The Britam-Oye Partnership: A Symbiotic Synergy

The collaboration between Britam and Oye is a prime example of a symbiotic relationship, where both entities leverage their core strengths to create a more impactful solution than either could achieve alone.

Embedded Insurance Solutions:

A key pillar of this partnership is the integration of Britam’s Personal Accident Cover directly into the Oye platform. This exemplifies the concept of embedded insurance, where insurance coverage is seamlessly incorporated into the purchase of a product or service that is not primarily an insurance product.

• Comprehensive Protection: The Personal Accident Cover provides riders with crucial protection against financial hardships arising from illness and injury. This typically includes benefits for medical expenses, temporary or permanent disability, and, in tragic cases, death benefits paid to beneficiaries. For boda boda riders, whose lives and livelihoods are inherently exposed to higher risks, such protection is not a luxury but a fundamental necessity.
• Eliminating Barriers: By being embedded within the Oye points system, the insurance eliminates traditional barriers such as complex application forms, tedious underwriting processes, and the psychological hurdle of proactively seeking out and purchasing insurance. The coverage becomes an almost automatic benefit of their daily routine, significantly increasing uptake and ensuring broader protection.

Fuel Credit Innovation: “Songa Na Oye”:

Perhaps one of the most immediate and tangible benefits for riders stemming from this partnership is the introduction of “Songa Na Oye” – a groundbreaking fuel credit system.

• Addressing Daily Cash Flow Challenges: Fuel is the primary operational cost for a boda boda rider, often requiring upfront cash that can significantly deplete their daily working capital. Many riders operate on very thin margins, making it difficult to afford a full tank of fuel at the start of the day, which in turn limits their operational capacity and earning potential.
• Flexible Repayment: “Songa Na Oye” allows riders to purchase fuel on credit, alleviating the immediate cash burden. The repayment mechanism is designed to be flexible, often allowing riders to repay gradually, perhaps through deductions from their daily earnings or via micro-repayments. This innovative solution directly addresses one of the most pressing daily challenges faced by boda boda operators, enabling them to maximize their earning hours and operational efficiency without being constrained by upfront fuel costs. It smooths out cash flow for riders, making their income more predictable and their operations more sustainable.

Market Impact and Broader Significance

The Britam-Oye partnership transcends a mere business deal; it is a profound response to a substantial market need and a testament to the power of corporate innovation aligned with grassroots solutions.

Addressing a Substantial Market Need: Kenya’s two million boda boda drivers are not just numbers; they represent a vibrant economic sector that, until now, has largely been excluded from adequate financial protection. Their daily exposure to risks, combined with the traditional complexities of insurance, created a critical gap. This investment directly addresses that gap, providing a tailored, accessible, and affordable solution that meets the unique needs of these essential service providers. The scale of the sector means that even a small percentage of adoption can lead to millions of lives covered, dramatically improving resilience.

Corporate Innovation Strategy and Scalability: As highlighted by Evah Kimani, this collaboration exemplifies Britam’s strategy of leveraging its innovation hub, BetaLab, to drive inclusive growth. Rather than developing every solution internally, Britam identifies and supports agile startups like Oye that have developed deep insights into specific market segments. This approach allows established corporations to:

• Accelerate Innovation: Tap into rapid prototyping and innovative thinking.
• Access New Markets: Reach previously underserved customer segments more effectively.
• Enhance Brand Reputation: Demonstrate commitment to social impact and financial inclusion.
• Scale Solutions: Utilize the startup’s proven model as a key distribution partner for their products, as Oye now is for Britam’s microinsurance and financial wellness products.

This model of corporate-startup partnership is increasingly recognized globally as a highly effective way for large organizations to remain competitive and relevant in a rapidly changing technological landscape.

A Blueprint for Microinsurance and Beyond: The success of Oye’s model, particularly its points-based system and reliance on USSD technology, holds immense potential for replication. This ingenious approach could serve as a blueprint for similar initiatives targeting other informal sectors not just in Kenya, but across the African continent. Think of small-scale traders, informal artisans, or agricultural workers – segments that share similar challenges with income volatility and limited access to formal financial services. The model demonstrates how technology can effectively bridge the gap between traditional financial services providers and underserved populations, ushering in an era of broader financial inclusion. Its success could inspire the development of similar “earned” benefits for health, savings, or even pension products linked to everyday activities.

Future Implications and the African Tech Landscape

Kevin Mutiso, CEO and Co-founder of Oye, rightly emphasizes the deeper meaning behind Britam’s investment: “This investment is more than just financial backing, it’s a belief in a local solution designed for Kenyan realities by Kenyan entrepreneurs. With Britam on board, we’re not only expanding reach, but we’re also deepening impact.” His words highlight the importance of locally relevant solutions developed by those who intimately understand the market.

Scalability and Replication: Oye’s model is inherently scalable. The use of USSD technology ensures broad reach, and the asset-light approach (leveraging partner merchants and agent networks) means it can expand rapidly without significant capital expenditure on physical infrastructure. The potential for replication across other East African countries with similar boda boda economies (e.g., Uganda, Tanzania, Rwanda) is significant. These markets face similar challenges, and a proven, localized solution from Kenya could find fertile ground.

Innovation Hub Impact: BetaLab’s role in facilitating this investment further solidifies the effectiveness of corporate innovation hubs. They serve as crucial bridges, connecting established industry players with the dynamic startup ecosystem. BetaLab’s focus on incubation, mentorship, and collaboration is key to identifying and nurturing solutions that address real-world problems at scale. This proactive engagement ensures that Britam continues to evolve its offerings and maintain its leadership position by integrating cutting-edge technology.

The Broader African Tech Landscape: This partnership is a microcosm of a larger, exciting trend across Africa. The continent is experiencing a boom in fintech innovation, driven by a young, tech-savvy population and a pervasive need for accessible financial services. Beyond fintech, the broader African tech ecosystem is witnessing unprecedented growth, attracting increasing amounts of venture capital. Investments are flowing into sectors like agritech, healthtech, edutech, and e-commerce, all leveraging mobile technology to leapfrog traditional infrastructure limitations. The Britam-Oye deal is a powerful indicator of:

• Growing Intra-African Investment: While global VC interest is strong, an increasing number of African funds and corporates are investing in African startups, fostering a more self-sustaining ecosystem.
• Focus on Real-World Problems: African tech innovations often directly address fundamental societal and economic challenges, making them highly impactful and sustainable.
• The Power of Partnerships: The collaboration between large corporations and agile startups is becoming a defining feature of successful innovation strategies on the continent.

Conclusion: A Partnership for Prosperity and Progress

The KES 5 million investment by Britam’s BetaLab in Oye is far more than a financial transaction; it is a strategic partnership poised to catalyze significant positive change for Kenya’s boda boda industry and serve as an inspiration for broader financial inclusion efforts across Africa. By seamlessly integrating essential financial services – insurance and fuel credit – into the daily lives of two million riders through an innovative, points-based, and technologically accessible model, this collaboration directly addresses critical gaps that have long hindered the sector’s growth and stability.

Combining Britam’s extensive insurance expertise and market reach with Oye’s agile, tech-driven solution, this initiative exemplifies how meaningful social impact can be achieved through strategic alliances. It demonstrates that financial services can be delivered affordably and inclusively, reaching even the most underserved populations who are often at the highest risk. The success of this initiative could indeed serve as a vital blueprint for similar partnerships across Africa, where traditional financial services often fall short in reaching the vulnerable communities who need them most. As Africa continues its rapid digital transformation, partnerships like that between Britam and Oye will be instrumental in building a more resilient, equitable, and prosperous future for all.

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Photo source: Google

By: Montel Kamau

Serrari Financial Analyst

18th June, 2025