Kenya on the spot over political risk claims
By Domnic Omondi | July 6th 2016
The Government is on the spot for failing to reimburse cash received as insurance claims for political-related risks.
Trade Insurance Agency (ATI), a 10-member export credit body, singled out the Government of Kenya as one of the countries that failed to reimburse about $15 million (Sh1.53 billion), most of which were political risk claims.
The ATI said after its 16th Annual General Meeting in Kigali, Rwanda, that a few of its members had failed to reimburse some political risk claims, and emphasised the need for these countries to honour their commitment to the institution.
“A few countries are failing to meet their commitment to reimburse us for any political risk claims incurred as a result of the government failing to meet their obligation. To date, we have $15 million outstanding of which the majority is on political risk claims,” said ATI CEO George Otieno.
He warned that this does not sit well with a country that is heading towards elections. Kenya will be keen to ensure that the elections do not dampen the country’s economic prospects. Bureaucracy and budget constraints were noted as the main reasons governments were having difficulties reimbursing ATI.
“In the case of Kenya, which is going into elections next year, their inability to pay could have a ripple effect in the financial markets while eroding investor confidence,” added Otieno.
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