NAIROBI, Kenya, June 30 – Kenyan businesses and individuals have been urged to protect their capital against emerging risks such as cybercrime, political violence and extreme weather by taking up appropriate insurance cover.
Speaking during Capital FM’s Morning Show, NCBA Insurance Chief Executive Officer and Managing Director Stella Njunge said transferring risks to reliable underwriters is now essential for sustainable business growth.
Her remarks come as small and medium-sized enterprises (SMEs) face a growing range of threats that can wipe out years of investment and hard work.
She said insurance should no longer be viewed as a luxury but as an essential financial safety net that helps businesses and individuals avoid devastating losses.
Businesses are increasingly exposed to risks ranging from the recent floods that hit parts of Nairobi to cyberattacks in the digital economy and property damage arising from civil unrest.
Njunge said insurers have responded by developing products such as SME cover, travel insurance and specialised motor insurance to cushion customers from such losses.
Explaining the changing risk landscape, Njunge noted that the business environment has become more unpredictable.
“The risks that businesses face in this country are wide and diverse,” she said.
“In the last two or three years, we’ve seen a lot of flooding, hitherto unprecedented in certain areas such as Nairobi. You never thought that Westlands, Runda, even our own Expressway would be an area where you would lose your vehicle, where you need boats to get home.”
She added that civil unrest has also increased the need for comprehensive business protection.
“Our SME cover does cover political violence risk. If you lose your stock or your shop is damaged, that is some of the covers that we issue at NCBA IG just to protect your business and help you carry on your day-to-day operations as a business owner,” she explained.
Njunge also warned that cyberattacks have become a major concern as more businesses digitise their operations.
Speaking about NCBA’s Cyber Guard policy for SMEs, she said: “We will consult for you and just give you a three-point assessment of whether or not you’ve done enough, or you’ve put in enough security within your online and digital platforms.”
Beyond business insurance, she stressed the importance of personal protection through travel and specialised motor insurance.
Warning about the financial impact of medical emergencies abroad, she said: “If there is one cost that can really tank your trip overseas, it’s you falling ill and having to seek medical attention.”
She also noted the growing number of luxury vehicles on Kenyan roads, saying they require specialised insurance because of their high repair costs and advanced technology.
“You will definitely see a Bentley, you will see several Range Rovers, you will see Porsches… For that, you do need an insurance cover that understands that it’s just not a fender bender or someone cracked your windscreen; your windscreen actually has sensors.”
Njunge said many businesses deplete their working capital, borrow money or use personal savings to recover from unexpected disasters instead of transferring those risks through insurance.
She urged entrepreneurs to make insurance a key part of their financial planning.
“What you can’t transfer, a bad business decision, let that one hit your capital. But for something for which you can actually get insurance, why don’t you take it up as a business priority?”
