× Business BUSINESS MOTORING SHIPPING & LOGISTICS DR PESA FINANCIAL STANDARD Digital News Videos Health & Science Lifestyle Opinion Education Columnists Moi Cabinets Arts & Culture Fact Check Podcasts E-Paper Lifestyle & Entertainment Nairobian Entertainment Eve Woman Travelog TV Stations KTN Home KTN News BTV KTN Farmers TV Radio Stations Radio Maisha Spice FM Vybez Radio Enterprise VAS E-Learning Digger Classified Jobs Games Crosswords Sudoku The Standard Group Corporate Contact Us Rate Card Vacancies DCX O.M Portal Corporate Email RMS

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.

Share this story
Equatorial Commercial Bank re-brands to Spire Bank
Equatorial Commercial Bank (ECB) has rebranded to Spire Bank as it announced plans to restructure its operations to meet new business requirements.
Survey: Why 40 pc of workers want to quit their jobs
More than half of 18 to 25 year-olds in the workforce are considering quitting their job. And they are not the only ones.