By John Njiraini
Small and medium enterprises (SMEs) can now operate without the fear of losing their businesses to chaos arising from political violence.
This follows the signing of a reinsurance treaty worth Sh31 billion between APA Insurance and African Trade Insurance Agency that will see SMEs receive insurance cover for risks arising from political violence and terrorism.
APA Insurance Chief Executive Officer Ashok Shah said the post-election violence that rocked the country after the 2007 elections and the threat of terrorist attacks in the country means business owners must be ready.
Threat of terrorism
"The events after 2007 elections, the threat of terrorism and the complex shape of regional politics underscores the need for property owners to take precautions," he said.
The launch of the product, the third of its type in the country, comes at a time when there is rising tension and uncertainty due to political polarisation occasioned by a weak coalition and the constitution review process.
The cover also comes amid fears of threats of terrorism attacks due to the takeover of Somalia by Al-Shabaab, a militia group believed to have links with Al Qaeda.
No extra charge
Recently, the Government said members of Al-Shabaab are in the country and were involved in last week’s deadly confrontations in the city.
Shah said under the cover, both corporates and individuals in Kenya and Uganda would insure vehicles, business premises, stock and even goods on transit.
"The cover is structured in such a way that a large number of clients with modest property values can enjoy it at no extra charge," he said.
Shah termed the new product as enabling the firm to mitigate its own risks considering that in 2008, it paid claims worth Sh50 million to its clients who were affected by the post-election violence.
