Zanzibar’s travel insurance collects  million, aids tourists in emergencies

Zanzibar’s travel insurance collects $20 million, aids tourists in emergencies

Unguja. The Revolutionary Government of Zanzibar (RGZ) has collected more than $20 million (Sh53.27 billion) through its mandatory travel insurance scheme for international visitors since its launch in October 2024.

Of the amount collected, only $1.59 million (Sh4.13 billion) was spent on emergency services for tourists during the scheme’s first six months of implementation.

Introduced by the President’s Office – Finance and Planning, the initiative requires all foreign visitors to pay a $44 (about Sh116,880) insurance fee as part of their entry requirements into Zanzibar.

The policy covers a wide range of risks, including medical emergencies, death, loss of documents, and other unforeseen incidents during a visitor’s stay on the islands.

According to the Deputy Minister of Finance and Planning, Mr Juma Makungu Juma, funds collected between October 1, 2024, and March 31, 2025, were used to provide emergency medical services, evacuations, and repatriations for affected tourists.

“The goal of this insurance is to ensure that tourists who face emergencies while in Zanzibar can access immediate support without delay. The amount spent so far has gone into medical treatment, air evacuations, and returning bodies or patients to their home countries,” he said.

Among the notable cases was that of two Hungarian tourists who sustained leg fractures en route to the airport.

After initial treatment at Lumumba Hospital, they were flown home aboard an air ambulance chartered by the Zanzibar Insurance Corporation to Morocco.

Other cases involved the repatriation of bodies of tourists from France, Germany, and Kenya who died while visiting the islands.

The scheme was discussed in the House of Representatives on May 22, 2025, when Kiembesamaki legislator Suleiman Haroub Suleiman sought clarification on the revenue generated and how the funds had been utilised.

At the time, it had been reported that $6 million (Sh16 billion) had been collected, but a subsequent official response confirmed that the figure had reached $20 million (Sh53.27 billion).

In response to public feedback and to promote regional integration and ease movement within the bloc, the RGZ has since reduced the insurance fee for citizens of East African Community (EAC) member states to $22 (about Sh58,440).

While the majority of the funds remain unspent, authorities say the insurance pool is designed to ensure that sufficient resources are available when needed, particularly in emergencies requiring urgent medical or logistical interventions.

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Britam half-year net profit hits Sh2bn on higher investment income
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Britam half-year net profit hits Sh2bn on higher investment income

Insurer and financial services provider Britam posted a 22.5 percent jump in net earnings for the half-year ended June 2024, to Sh2 billion, buoyed by increased investment income.

The rise in half-year net profit from Sh1.64 billion posted in a similar period last year came on the back of net investment income rising 2.5 times to Sh13.27 billion from Sh5.3 billion.

“We are confident in the growth and performance trend that Britam has achieved, supported by its subsidiaries in Kenya and the region. Our business is expanding its revenue base while effectively managing costs,” Britam Chief Executive Officer Tom Gitogo said.

“Our customer-centric approach is fueling growth in our customer base and product uptake, particularly through micro-insurance, partnerships, and digital channels.”

The investment income growth was fueled by interest and dividend income rising 34 percent to Sh9.1 billion, which the insurer attributed to growth in revenue and the gains from the realignment of the group’s investment portfolio.

Britam also booked a Sh3.79 billion gain on financial assets at a fair value, compared with a Sh1.8 billion loss posted in a similar period last year.

The increased investment income helped offset the 12.7 percent decline in net insurance service result to Sh2.13 billion in the wake of claims paid out rising at a faster pace than that of premiums received.

Britam said insurance revenue, which is money from written premiums, increased to Sh17.8 billion from Sh16.6 billion, primarily driven by growth in the Kenya insurance business and regional general insurance businesses, which contributed 30 percent of the revenue.

The group has a presence in seven countries in Africa namely Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique, and Malawi.

Britam’s insurance service expense hit Sh13.6 billion from Sh11.3 billion, while net insurance finance expenses rose 2.6 times to Sh12.3 billion during the same period.

“Net insurance finance expenses increased mainly due to growth in interest cost for the deposit administration business driven by better investment performance. This has also been impacted by a decline in the yield curve, which has led to an increase in the insurance contract liabilities. The increase has been offset by a matching increase in fair value gain on assets,” said Britam.

Britam’s growth in profit is in line with that of other Nairobi Securities Exchange-listed insurers, which have seen a rise in profits.

Jubilee Holdings net profit in the six months increased by 22.7 percent to Sh2.5 billion on increased income from insurance, helping the insurer maintain Sh2 per share interim dividend.

CIC Insurance Group posted a 0.64 percent rise in net profit to Sh709.99 million in the same period as net earnings of Liberty Kenya nearly tripled to Sh632 million from Sh213 million, while Sanlam Kenya emerged from a loss to post a Sh282.2 million net profit.

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