Small and medium-scale enterprises (SMEs) need to insure themselves against political violence and terrorism that is now being offered by insurance companies, the Kenya National Chambers of Commerce and Industry has said.
KNCCI Mombasa chapter chairman Abud Jamal said not many SMEs know about the product despite it being available for about 10 years now.
Jamal said SMEs need to get advice on tax and insurance matters that touch their businesses to be able to mitigate unforeseen risks.
“We should mitigate uncertainties that come across, especially what we are seeing happening in Kenya right now with the Gen Zs," Jamal said.
“These things happen across the world and Kenya is not an exception. So what can we do as business people to be able to mitigate those risks? Insurers like Britam not only offer these solutions but also advice on what to do.”
He spoke during the Mombasa chapter of the Britam Biashara Network on Friday at the Sarova Whitesands Beach Hotel.
He called on insurance companies to be more aggressive in spreading their messages so that they reach even the smallest enterprises at the grassroots.
Insurance company Britam said the political violence and terrorism (PVT) product has been picking up in the last five years with many of its clients now taking it up but as an extension to their existing covers.
Britam CEO and Principal Officer of General Insurance Company Jackson Theuri said SMEs do not been having knowledge about the political violence and terrorism product but this has changed since the introduction of the Britam Biashara Network program.
The program is meant to bring together both SMEs and large corporations so they can network and share knowledge and important information.
Theuri said unexpected events like political violence in the country can lead to loss of property and life and its cover is key to the undisturbed growth of SMEs.
“I am glad there have been a lot of questions about the product. When it started, not many people thought it was a necessary cover but now we have seen a lot of interest," he said.
“Many are buying it as an extension of their Britam Biashara cover, car cover, among others.”
The Britam General Insurance Company CEO said the potential of Small and Medium Scale Enterprises (SMEs) growth in the country has not been fully exploited.
SMEs make up over 98 per cent of the enterprises in Kenya and contribute about 40 per cent of the country’s GDP.
The SMEs also employ over 90 per cent of Kenyans.
However, Theuri said the SME contribution to the GDP can be pushed to over 50 per cent if they are supported more.
Britam, he said, is working to ensure this happens through the Britam Biashara Network program.
“As you network, we want you to grow. You grow by working and trading with each other,” Theuri said,
He noted business environment changes rapidly and may catch businesses unawares.
For instance, the Gen Z anti-government protests caught many businesses unawares across the country as they started peacefully but morphed into violent events where goons took advantage of the situation to steal and destroy people’s properties and businesses.
Taxes have also presented challenges to SMEs and tax experts gave out tips on how to navigate the challenges.
Theuri said businesses need to safeguard themselves from unnecessary exposure to taxes.
He said entrepreneurship in Kenya is key to the growth of the economy and Britam has a special focus on it through the Britam Foundation.
Theuri said they are also currently surveying in a bid to introduce a Sharia-compliant product for their clients.
“We are still at the research stage because we think we need to take time. As Britam, the way we develop our programs, we start with first understanding the client before we customize the solution,” Theuri said.
The product is expected to be rolled out in 12 months’ time.
“We normally avoid rushing to roll out a product before we have understood what is the customer’s need and how can we apply the solution either on the side of protection, investment or savings but then address that need fully,” Theuri said.