Kacha Digital Financial Services

Kacha Digital Financial Services, Ethiopia's first private mobile money operator, is addressing the low insurance penetration rate in Ethiopia by introducing digital premium financing. In partnership with Lucy Insurance S.C. and Global Bank of Ethiopia, and supported by FSD Africa's BimaLab Insurtech Accelerator Programme, Kacha allows users to pay for motor vehicle and other insurance premiums via manageable instalments on a mobile platform. This initiative aims to support underserved groups such as MSMEs, farmers, and self-employed individuals who previously faced high upfront cost barriers.

• Ethiopia's insurance sector is underdeveloped, with a penetration rate of 0.8% of the population as of 2022. The sector is dominated by the state-owned Ethiopian Insurance Corporation and is hindered by manual processes and strict capital requirements from the National Bank of Ethiopia, leaving farmers, self-employed people, and MSMEs without affordable options.
• Kacha Digital Financial Services has partnered with Lucy Insurance S.C. and Global Bank of Ethiopia to implement digital premium financing. This system allows consumers to purchase and manage insurance policies for motor vehicles and other products via mobile phones using instalments to remove upfront cost barriers.
• The adoption of Kacha's digital payment and money transfer platform has enabled small business owners, such as a café owner in Addis Ababa, to move from risky cash transactions to secure, cashless transactions, leading to increased sales and customer convenience.

APA

FSD Africa (2025). Kacha Digital Financial Services. https://fsdafrica.org/impact-stories/kacha-digital-financial-services/

Chicago

FSD Africa. Kacha Digital Financial Services. 2025. https://fsdafrica.org/impact-stories/kacha-digital-financial-services/.

Wikipedia

{{cite report |author=FSD Africa |title=Kacha Digital Financial Services |date=28 May 2025 |url=https://fsdafrica.org/impact-stories/kacha-digital-financial-services/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fsdafrica2025kacha, author = {{FSD Africa}}, title = {{Kacha Digital Financial Services}}, institution = {FSD Africa}, year = {2025}, month = may, url = {https://fsdafrica.org/impact-stories/kacha-digital-financial-services/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }