Kenya’s economy is blossoming. However, most small and medium businesses continue to face great financial challenges. It is costly to build, maintain and grow a business today. This makes it harder for businesses to afford protective solutions for their businesses, namely business insurance covers.
It makes more business owners rule out insurance solutions when it comes to making purchasing decisions. Insurance companies are working round the clock to make it easier for business owners by offering insurance credit facilities.
These credit facilities help more business to spread the cost of insuring their businesses across a given period while making monthly payments.
This not only gives business owners peace of mind in terms of insuring their businesses but also ensures they will not have to dent their business accounts with one lump sum payment thus promoting business continuity.
There is a challenge as far as the penetration rate of insurance in Kenya is concerned, not only in Kenya but even in the entire African region. Globally, the penetration rate is about six percent whereas in Kenya it is less than six percent meaning in the East African region we are leading.
The credit facilities expedition in Kenya has not been easy since the interest rates were increased. The financial institutions in Kenya have found it riskier to lend money to the common mwananchi and are now opting for other less risky form of lending.
In Kenya, we see many small and medium sized enterprises (SMEs) fall and fail to recover due to unexpected disasters.
Seeking insurance solutions for SME owners is important so as to help them reclaim their businesses and keep them moving even after unexpected incidents such as fires, natural disasters and political violence.SME owners should also seek advice on matters that involve securing their businesses.
The writer is Resolution Insurance MD.