📄 Abstract
Financial sustainability remains a critical concern for insurance firms in Kenya amid increasing competition, changing customer expectations and the need for firms to maintain sustainable financial performance. Differentiation strategy provides insurance firms with an opportunity to distinguish their products and services through unique value propositions, service quality, product innovation and customer-oriented offerings. However, empirical evidence on the contribution of differentiation strategy to the financial sustainability of insurance firms in Kenya remains limited. This study examined the effect of differentiation strategy on the financial sustainability of insurance firms in Kenya. The study adopted a quantitative research approach and a correlational research design. The target population comprised senior executives from licensed insurance firms in Kenya, from whom data were collected using structured questionnaires. Financial sustainability was assessed using indicators including return on assets, return on investment and underwriting profitability. Descriptive statistics, Pearson correlation and regression analysis were used to analyse the data. The findings indicated a statistically significant positive relationship between differentiation strategy and financial sustainability of insurance firms in Kenya (r = .485, p < .001). Simple linear regression further showed that differentiation strategy explained 23.5% of the variation in financial sustainability, with the regression model being statistically significant. The findings conclude that differentiation strategy is an important strategic consideration in enhancing the financial sustainability of insurance firms in Kenya. The study contributes empirical evidence on the strategic management of insurance firms and provides a basis for strengthening differentiated products and services as firms seek to sustain their financial performance in a competitive market.
🏷️ Keywords
📚 How to Cite:
Wesley Kipkemoi Bosuben, Dr. Hellen W. Sang, Dr. Lydia Langat , DIFFERENTIATION STRATEGY AND FINANCIAL SUSTAINABILITY OF INSURANCE FIRMS IN KENYA , Volume 13 , Issue 9, September 2026, EPRA International Journal of Economics, Business and Management Studies (EBMS) , Pages: 234 - 241 ,