Kenyan election concerns
US-based Clements Worldwide, a provider of international insurance solutions, has urged businesses to re-examine their risk management strategies before the March elections in Kenya. Dan Tuman, vice-president of sales at the company, said: “There is a chance that one of Africa’s most stable economies, as the next round of voting approaches, will be on the brink of instability once again, potentially repeating the political and social tumult of the 2007 elections.” Tuman was making reference to the post-election violence in 2007 that saw fighting and violence break out, populations displaced and widespread loss of property. Tuman further warned: “Companies could once again suffer from significant losses due to business interruption. Potential road blockages would cause logistics challenges, either delaying or altogether halting cargo deliveries. A social uprising might also create an unsafe environment for staff, resulting in prolonged absences.”
According to the Africa Trade Insurance Agency, the demand for political risk and terrorism insurance from both local and international firms in Kenya has risen by over 50 per cent in the last 12 months. Tuman concluded: “While uncertainty remains, most companies are taking necessary precautions. Preparedness amongst businesses is a higher priority than ever before, as evidenced by the recent increase in special risk covers. From standard property to political risk to terrorism insurance, organisations are now actively protecting against financial losses with critical insurance cover.”