The Lower Eastern Times Opening The Third Eye
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Retailers in Kenya are attributing the low uptake of insurance in the sector to high premiums and limited profit margins.
Retail Trade Association of Kenya (RETRAK) CEO Wambui Mbarire told Capital FM that while large retailers can afford insurance, many informal traders struggle to meet basic requirements like operating from permanent premises or keeping stock records — key criteria for filing claims.
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Speaking on the Capital FM breakfast show, Mbarire emphasized the need for a conversation with the Insurance Regulatory Authority (IRA) to address these challenges, particularly for informal and semi-formal businesses.
“Retailers are often the first to suffer during unrest, yet they’re the least protected,” she said, adding, “Retail is driven by volume, not margins. So when faced with costs like rent, wages, and insurance, something has to give.”
She highlighted the vulnerability of small traders during protests, where theft and destruction often lead to unrecoverable losses — sometimes including stolen cash boxes — because proving the value of lost goods is nearly impossible without formal records.
Mbarire called for more accessible, flexible insurance solutions that align with the realities of Kenya’s retail sector.
Insurance penetration in Kenya remains low at around 2.3–2.4% of GDP — far below the global average.
The IRA attributes this to limited disposable income, low savings culture, and widespread mistrust in insurance providers.
