The African Trade Insurance Agency (ATI) has witnessed fewer enquires for political risk cover than in previous elections.
ATI provides political risk, surety bonds, trade credit insurance and political violence, terrorism and sabotage cover.
Although ATI does not foresee political violence, it has urged existing clients with political risk covers to maintain them.
Demand for political risk insurance by Kenya firms has remained subdued ahead of the August 8 general election as majority investors exude confidence the polls will largely be peaceful.
The African Trade Insurance Agency (ATI) on Thursday said it had witnessed fewer enquires for political risk cover than in previous elections.
“We have noticed that compared to the last election (2013) we have not seen many inquiries on (political risk) policies because people have felt that this election is much safer than 2007,” said George Otieno ATI’s chief executive officer.
ATI was founded in 2001 by African States to cover the trade and investment risks of companies doing business in the continent.
It provides political risk, surety bonds, trade credit insurance and political violence, terrorism and sabotage cover.
As of 2016, ATI supported $25 billion (Sh2.5 trillion) worth of trade and investments into member countries in sectors such as agribusiness, energy, exports, housing, infrastructure manufacturing, mining and telecommunications.
In 2016, ATI insured close to $4 billion (Sh405 billion) worth of trade and investments.
Up to 1,300 people died in weeks of riots and post-election violence that rocked Kenya after the disputed 2007 Presidential elections.
Mr Otieno, while maintaining ATI does not foresee political violence, said it had, however, urged existing clients with political risk covers to maintain them.
He spoke when the multilateral insurer released its financial results for the year ending December 2016.
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Note: The results are not exact but very close to the actual.
