Influence of Product Development Strategy on Microinsurance Uptake among Micro and Small Enterprises in Nairobi City County, Kenya

Purpose: The study aimed to investigate influence of product development strategies on microinsurance uptake among micro and small enterprises in Nairobi County, Kenya. Methodology: The research adopted a positivist philosophy and descriptive research design. A representative sample of 387 MSEs was selected through multistage random sampling from a population of 12,429 registered MSEs in Nairobi County (MSEA, 2024). Data collection involved structured questionnaires, with a pilot test conducted to ensure validity and reliability. Quantitative data were analyzed using SPSS version 27. Descriptive statistics such as means and standard deviations were calculated, while inferential analysis employed multiple regression and correlation techniques to test hypotheses at a 95% confidence level (p < 0.05). Findings: The analysis revealed strong positive correlations between product development strategies and microinsurance uptake (r = 0.572), significant at p < 0.01. Regression models showed that the strategy accounted for 32.7% of the variance in microinsurance uptake. The ANOVA results indicate an F-statistic of 146.009 with a p-value of 0.000 further suggesting that the relationship between product development strategy and microinsurance uptake was statistically significant at the 95% confidence level. The unstandardized coefficient (B) for product development strategy was 0.317, indicating that a one-unit increase in product development strategy led to 0.317 units increase in microinsurance uptake. Unique Contribution to Theory, Practice and Policy: Based on the study findings, microinsurance providers should intensify investment in market research to understand the specific risks, operational challenges, and protection needs of different MSE sectors. Product design should prioritize flexibility, affordability, and relevance to the business environment.