NAIROBI, Kenya, Feb 22 – Sixty Micro, Small, and Medium Enterprises (MSMEs) in Taita Taveta County have undergone training on risk management and insurance awareness.
The program, led by the Insurance Regulatory Authority (IRA), aimed to equip entrepreneurs with essential knowledge on insurance concepts, business sustainability, and effective risk management strategies.
The two-day training highlighted the role of insurance in protecting businesses from financial shocks and ensuring continuity.
According to IRA Director of Market Conduct, Anne Chelagat, many MSMEs remain vulnerable due to inadequate risk mitigation strategies.
She emphasized that educating entrepreneurs on insurance options is crucial for their resilience and long-term growth.
A recent study by IRA found that 63 percent of MSMEs in Kenya lack any form of insurance. While larger businesses often utilize formal insurance mechanisms, smaller enterprises rely on informal methods, leaving them highly exposed to financial risks.
The training sought to bridge this gap by fostering a proactive approach to risk management.
The 2023 Insurance Industry Report indicates that Taita Taveta is among 40 counties contributing only 7 percent of Kenya’s total insurance premium. In contrast, Nairobi accounts for 82.3 percent.
To address this disparity, localized consumer education initiatives are essential to boost insurance uptake and financial resilience among MSMEs.
Participants gained insights into assessing their insurance needs and selecting appropriate products.
IRA aims to continue such initiatives to enhance insurance penetration across the country and promote informed decision-making within the MSME sector.
