Mastercard has announced a strategic partnership with insurtech firm Hillcroft (mTek) to embed insurance products into digital payments across East Africa, in what both organisations say is a landmark step in boosting financial resilience and inclusion.
The collaboration, launched in Nairobi, will integrate tailored insurance coverage into consumer and SME (small and medium enterprise) Mastercard card experiences eliminating traditional barriers such as high upfront premiums, lengthy application processes and limited distribution that have hindered insurance uptake in the region.
Insurance penetration in many East African markets remains below 3 percent, according to industry reports. Mastercard and insurtech mTek aim to change that by delivering “embedded insurance” that is, protection built into everyday payment flows rather than sold as a separate product.
Shehryar Ali, Senior Vice President and Country Manager for East Africa & Indian Ocean Islands at Mastercard, said the model “removes friction and makes protective cover accessible to millions of people and businesses.”
“By bringing insurance directly into the payment experience, we are removing friction and making protective cover accessible to millions of people and businesses,” Shehryar Ali said. “From consumers buying daily goods to farmers selling their harvest, this initiative is about building resilience and supporting economic growth across East Africa.”
SMEs, which account for more than 90 percent of businesses in East Africa and are crucial to job creation and GDP, often struggle to access affordable insurance. By embedding coverage at the point of transaction, Mastercard and mTek say they are meeting firms where they already operate on existing payment rails.
Bente Krogmann, CEO of mTek, described the collaboration as an opportunity to “scale our technology” and “connect with millions through trusted payment channels,” aiming to deliver “simple, affordable and life-changing” solutions for underserved communities.
“At Hillcroft (mTek), our mission has always been to reimagine access to insurance in Africa. Collaborating with Mastercard allows us to scale our technology and connect with millions of consumers and SMEs through trusted payment channels. Together, we aim to deliver solutions that are simple, affordable and life-changing for underserved communities,” she said.
mTek will support the partnership through API integrations with underwriters, providing technical infrastructure and co-developing product offerings together with insurance firms.
The model envisions bundling payments and insurance into digital and virtual card solutions, thereby creating new pathways for distribution across East Africa.
From a user perspective, this could mean that when a consumer or business makes a payment using their Mastercard, they are automatically offered or enrolled in relevant protection without needing to visit an insurer, fill large forms or pay a large premium up front.
Beyond the consumer benefits, the collaboration is seen as a way for financial institutions, telecoms providers, and insurance companies to deepen engagement, build loyalty, and expand their ecosystems.
In Africa, insurance remains among the least penetrated global markets. By entering embedded insurance, Mastercard is signalling a shift in how financial services can be delivered, integrated, seamless, and built around consumer behaviour rather than formal product siloes.
For farmers, microbusinesses and everyday users in Kenya, Uganda, Tanzania, Rwanda and other countries in the region, the embedded insurance model promises greater access to risk mitigation with less frictions. Given the volatility of climate, market shocks and health risks, making insurance frictionless and accessible could make a real difference in resilience.
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