Education insurance in Kenya (school fees policies)

What education insurance is — and what it is not

Britam's education brochure defines an education policy as "a type of insurance solution that helps you save for your child's education" which "guarantees that your child's education is covered, even if you're not there to support them". ICEA LION describes its UsomiBora plan as "a life insurance plan that helps you save for your child's education".

So the person insured is the parent or guardian who pays, not the child. The policy combines two things:

• Savings: premiums paid monthly, quarterly or yearly build up to cash payouts timed for school fees, plus a lump sum at the end of the term.
• Protection: if the parent dies (and, in some plans, becomes disabled or critically ill), the insurer pays a benefit and/or takes over the premiums until maturity.

Education policies are long-term (life) business, so check that the company holds a long-term licence — our life insurance guide explains the other types of life policy and links to the regulator's list.

What three insurers publish about their education plans

The table below reproduces Britam's own brochure (updated March 2025, seen October 2026). It is Britam's statement about its products, not a rating or a recommendation:

Britam's brochure also lists a waiver of premium and a guaranteed maturity benefit on all four plans, a premium holiday on all except Super E, and a policy loan after the second year (Boresha Elimu) or the third year (Msingi Poa, Super E), but not on Soma Sure.

• ICEA LION UsomiBora — ICEA LION's own page lists terms of 8 to 17 years depending on the education stage, monthly, quarterly or annual premiums, the remaining premiums paid by the insurer if the policyholder dies, and at maturity the sum assured plus reversionary and terminal bonuses, which it says "depend on market performance". The maturity payout can be taken as a lump sum, four annual instalments or eight termly payments.
• Absa Life Education Plan — Absa Life's page says the plan pays a lump sum for high school and/or tertiary education "upon maturity, early death, or disability of the policyholder", that its benefits are guaranteed provided premiums are paid on time, and that you can add an optional yearly inflation increase of up to 10%.

What education insurance costs

None of the three insurers publishes a price list for its education plans: the premium is quoted for each family. What drives it, from the insurers' own documents:

• The amount you want paid out (the sum assured) and when — Britam asks you to consider "the projected future cost of your child's education" and "your child's age and the time you have".
• The school you plan for — ICEA LION tailors UsomiBora to the type of school (public or private) and the curriculum (CBC, 8-4-4 or international).
• The riders you add — death, disability or critical illness cover for the parent, where optional.
• Your health — Absa Life requires medical tests when the total sum assured across your active policies exceeds KES 20M, or when you answer yes to a medical question. Britam recommends a medical check-up by a doctor from its panel, at its cost.

If your income drops, ICEA LION says UsomiBora's premium can be reduced to a minimum of KES 2,000; Britam offers a premium holiday on three of its plans; Absa Life offers a paid-up benefit. Ask for a written benefit illustration showing what is guaranteed and what depends on bonuses or fund returns before you sign.

Tax relief on an education policy

Section 31 of the Income Tax Act gives a resident individual an insurance relief of 15% of the premiums paid, capped at KES 60,000 a year (KES 5,000 a month), on an education policy with a maturity period of at least 10 years. That is why Britam marks tax relief on Boresha Elimu, Msingi Poa and Soma Sure "for policies above a term of 10 years", and why Absa Life states the same condition.

• Employees get the relief through the payroll: ICEA LION tells employees to claim it "through HR", with the insurer's certificate.
• Self-employed people claim it from KRA, ICEA LION's page adds.
• Surrendering early costs you the relief: under proviso (vi) of section 31, the relief granted on a policy surrendered before maturity is recovered from the surrender value.

The rules, worked examples and the certificate KRA expects are in our insurance relief guide.

How education policies pay out and how to claim

1. School-fee payouts and maturity: Britam's brochure says the cash payouts and the maturity benefit "shall automatically be paid" into the bank account you gave, with an SMS notification. Keep your bank details up to date with the insurer.
2. If the parent dies: notify the insurer. Britam asks for its death notification form, a certified copy of the ID of the person claiming, a certified copy of the burial permit and any other document it requests.
3. Premium waiver: once the death claim is accepted, the insurer takes over the premiums until maturity (ICEA LION, and Britam's waiver of premium), so the scheduled payouts still reach the child.
4. Disability or critical illness: only if your plan includes that benefit — check the policy document for the definitions and the evidence required.

Before you sign: traps to avoid

• Guaranteed or not: bonuses (ICEA LION) and investment-linked funds (Britam's Soma Sure) can go down as well as up; only the guaranteed part is certain.
• Death cover may be optional: on Boresha Elimu and Soma Sure, Britam lists the parent's death benefit as optional — without it, the plan is closer to pure savings.
• Term too short for tax relief: a maturity period under 10 years earns no insurance relief.
• Stopping early: Absa Life says a surrender pays a benefit "depending on the time of surrender", and section 31 claws back your tax relief. Use a premium holiday, a reduced premium or a paid-up option where the plan offers one.
• Match the payouts to the fees: check that the payout dates fall when your child's fees are due, not a year late.

To compare education plans from licensed life insurers, ask for quotes and ask each one for a benefit illustration and the tax-relief certificate.

Sources

1. Britam — education policies brochure, updated March 2025: Boresha Elimu, Msingi Poa, Super E, Soma Sure (insurer's own document, seen October 2026)
2. ICEA LION — Education Insurance (UsomiBora) product page (insurer's own page, seen October 2026)
3. Absa Life Assurance Kenya — Education Plan product page (insurer's own page, seen October 2026)
4. Income Tax Act, Cap. 470 — s.15(2)(ad) and (ae), s.31 (insurance relief) and Third Schedule, Head B (amount of the reliefs), as amended to 1 July 2026 — Kenya Law