SMEs will have to part with between Sh5,000 and Sh1 million monthly premiums to cushion them against risks they feel most vulnerable.
In a move aimed at to revamping business insurance among small enterprises, the new policy by Minet and Fidelity insurance will enable SMEs choose the type of insurance they need, based on their specific risks and business requirements.
This will be undertaken through a cover, dubbed BiznaSure, a comprehensive and customizable insurance policy underwritten by Fidelity Insurance.
Minet Kenya’s Chief Executive Officer, Sammy Muthui said Kenya’s SME sector remains an untapped market for insurance products.
“We are giving SMEs the power of choice and access to the same level of protection as larger businesses, at affordable rates. And as the economy continues to recover, we expect demand for business insurance to grow as enterprises seek to protect themselves from uncertainties as seen with COVID-19,” said Muthui.
There are approximately 7.4 million MSMEs in Kenya, accounting for roughly a third (24 percent) of the country’s GDP.
Though impressive, that contribution is far lower than, for example, that of South Africa at 55 percent, indicating there is still an opportunity to grow the sector.
The announcement comes at a time when Kenya’s economy is projected to grow by 5.3 percent this year, according to the latest International Monetary Fund (IMF) projection, signaling the recovery of SMEs in a post-pandemic era.
According to Fidelity Insurance CEO, Richard Marisin the cover will protect against property damage, liability, theft, business interruption and various other risks which may affect the owner, employees and third parties.
Kenya National Chamber of Commerce and Industry President Richard Ngatia urged SMEs to take advantage of the solution by Minet and Fidelity to mitigate unforeseeable risks.
“I invite Minet to work with our chamber in supporting SMEs in enhancing financial inclusion and ensure sustained businesses through mitigation strategies as offered by this cover.”
