Xplico Insurance analysts believe it’s high time for Kenyan SMEs to embrace insurance coverage. They highlight the significant impact the SME sector has on Kenya’s economy, employing 86% of the population and contributing 45% to the GDP. However, despite its immense advantages, the sector still faces numerous challenges, which insurance coverage can mitigate.
Statistics from the Kenya National Bureau of Statistics show that over 450,000 SMEs close annually in Kenya, a number that may have increased due to the COVID-19 pandemic. Xplico Insurance points out the importance of insurance coverage in protecting SMEs from losses, such as stock damage caused by fires or business interruption due to political turmoil.
Efforts are underway to increase insurance penetration in Kenya, where the insurance penetration rate is only 3%, the third lowest in Sub-Saharan Africa. The insurance company emphasizes the crucial role SMEs play in society and the need for them to embrace insurance services to cushion, sustain and grow the sector.
