Digital insurance platform mTek has partnered with digital informal retail aggregator Kyosk.app and Fin, a focused fintech platform to provide insurance covers to over 100,000 Kenyan dukas.
Despite employing over 80 per cent of the Kenyan workforce, the informal retail sector is underinsured and faces a myriad of insurable risks including business interruption, theft, damage to property, cyber-attacks, and loss of stock.
mTek CEO Bente Krogmann said the firm will provide a paperless ecosystem to facilitate the purchase of the Britam product while Kyosk.app will facilitate a direct and seamless link to its network of 100,000 informal retailers. Fin will provide affordable financing for the insurance services.
"We have come together to become enablers and protectors of the informal retail sector through insurance products, contributing to the growth of Kenya's economy," said Ms Krogmann.
"With the adoption of digital services by informal retailers, mTek's paperless services offer business owners accessibility, convenience, and affordability." Informal retailers affiliated with the Kyosk.app platform will access digital and customised insurance products starting from as low as Kenya Sh74 per month.
Kyosk.app Head of Innovations Elijah Maina said the partnership will empower informal retailers and smallholder farmers to protect their profits as they grow their livelihoods.
"Every day, informal retailers are exposed to risks that could negatively impact their businesses from loss of inventory due to fire or theft, or loss of profit due to hospitalisation," said Mr Maina.
"Through this partnership, we have a bespoke insurance product that caters for all these risks under one cover, facilitating business continuity for the informal retailers, more so dukas."
Data from the insurance regulatory shows insurance penetration stood at 2.23 per cent in 2021 - with digitisation and innovative insurance products being key contributors to the sector's growth.
"Kenya's economy is underpinned by the informal retail sector. The sector drives both employment and GDP. Fin is proud to do its part by providing traders within the Kiosk.app network with a funding solution that will help them access insurance" said Fin CEO Tonderai Mutesva.