Kenya‟s insurance industry leads within the East Africa Community (the regional intergovernmental organization of the Republics of Kenya, Uganda, the United Republic of Tanzania, Republic of Rwanda and Republic of Burundi, with its headquarters in Arusha, Tanzania) and is a key player in the COMESA region. Despite this, the penetration of life insurance in Kenya has remained low at 0.94% of the GDP in 2009 and 1.05% of the GDP in 2010. This is considered to be very low compared to other countries in Africa such as South Africa which had a penetration of 7.58% of the GDP in 2009 and 12% of the GDP in 2010; Namibia had a penetration of 5.0% of the GDP in 2010.

From the view point of low life insurance business penetration in Kenya, this prompted the need for a study that analyzed and assessed the possible contribution to this unimpressive trend. There are 14 life assurance companies in Kenya and 7 composite insurance companies (offering both life and general insurance) for the year 2012, making a total of 21. The study focused on all the 21 registered and licensed life assurance firms in Kenya, located within Nairobi. Through purposive sampling, 5 sales staff were identified from each of the life assurance firms, making a total of 105 respondents. 

A structured survey questionnaire was administered by the researcher to the respondents, who were required to complete them. The responses were analysed using descriptive statistical techniques in form of frequency distribution tables, percentages; tables and graphs were used to present the data. The output was to establish the factors affecting the growth of life insurance business in Kenya and therefore came up with recommendations that will help in determining those indicators that the industry should focus on to enhance growth of life insurance business.