APA Insurance has launched a cyber-insurance product targeting Kenyan businesses as firms confront a sharp rise in hacking, ransomware, and digital fraud incidents linked to the country’s growing use of online services.
The insurer said its new APA Cyber Insurance cover is designed to protect both large corporates and small and medium-sized enterprises from cyber extortion, malware attacks, data breaches, and operational disruptions caused by denial-of-service attacks.
It also includes protection against insider misuse, third-party breaches, and downstream losses affecting customers or business partners.
Cyber risk is becoming one of the fastest-growing operational threats for companies adopting mobile money, cloud computing, e-commerce, and digital platforms in Kenya.
The Communications Authority of Kenya (CA) recorded 4.56 billion cyber threat incidents targeting Kenyan organisations in the three months to December 2025, a 441.27 percent jump from 842 million in the previous quarter.
“We see new risks coming in with the adoption of technology and artificial intelligence, and we want to mitigate that. Hacks and ransom demands are becoming a big threat,” Ashok Shah, group chief executive of APA’s parent company, Apollo Investments, told the Business Daily.
Mr Shah said the new policy goes beyond financial compensation to include incident response services, crisis communications support, and legal advisory assistance.
“We will provide coverage to our clients so that they do not need to pay ransom, but at the same time, their systems are protected,” he said.
APA joins other insurers offering coverage for cyber incidents, such as Aon Kenya, Britam, and Zamara.
Businesses that suffer breaches will get access to IT specialists to investigate and contain attacks, public relations support to manage reputational damage, and legal help to navigate liability risks.
APA will also support clients in improving their cybersecurity systems and restoring data after attacks, he said, and is exploring plans to introduce cyber cover for individual customers’ mobile phones and gadgets in the future.
“The cover gives a comprehensive solution for all cyber incidents, but a client can select which specific cyber threat they wish to be insured against,” said the CEO.
According to CA data, system attacks were the most prominent among Kenyan institutions in the quarter to December 2025. Some 4.38 billion incidents targeting operating systems, databases, and network infrastructure were reported. Malware, distributed denial-of-service attacks, and brute-force attacks also rose sharply, with DDoS incidents increasing more than elevenfold compared to the previous quarter.
Kenyan companies have been increasing spending on digital systems and online services, expanding their exposure to cyber risks even as many lack strong internal security controls.
Experts have warned that inadequate software patching, weak user awareness of phishing, and the growing use of AI-driven tools by attackers are contributing to the surge in cybercrime.
“Ransomware, business email compromise (impersonating executives or colleagues to trick employees into transferring funds or stealing sensitive data) and phishing are major issues local firms are battling, and advances in AI are making them easy to orchestrate,” Nairobi-based cybersecurity and risk consultant William Makatiani told the Business Daily.
“Cyber insurance is important to give a financial safety net against these incidents, but it needs to be coupled with cybersecurity awareness and stronger security systems across organisations.”
Insurance firms see cyber cover as a new growth segment, betting that rising digital adoption across sectors will increase demand for specialised risk protection.
