Kenyan insurance sector growing

NAIROBI, Kenya, Jan 19 - Players in the insurance sector say there is a growing demand for political violence, terrorism and sabotage cover thus the need for firms to provide them.

African Trade Insurance (ATI) Acting CEO Stewart Kinloch called upon insurance firms to protect their clients by coming up with innovative products that guard against potential losses emanating from such events.

“As the financial crisis bites deeper into pockets, there is a trickle-down effect that has impacts on fuel, food shortages and it doesn’t take a lot to turn fuel shortages and food shortages into political unrest and malicious damage,” he said.

Pointing to the events that led to the 2007 general elections, he pointed out that the need for this cover could not be overemphasized and underscored the need for property owners to take some precautionary measures.

Speaking after ATI signed a Sh31 billion political violence, terrorism and sabotage reinsurance agreement with APA Insurance, Mr Kinloch said the demand for such covers in the East African region was growing, a move which called for such insurance.


APA CEO Ashok Shah said they had moved to fill this gap in the market and even make it accessible to policy holders with modest incomes.

“The insurance industry in Kenya has been accused of shying away from non-traditional insurance leading to great suffering by the public in terms of loss of property by calamities,” Mr Shah said.

Premiums for policyholders with lower than Sh2 million would not be increased, he said.

“By doing this, APA is realy standing up for its customer base, the man on the street,” he added.

Under the reinsurance agreement, ATI will act as APA’s re-insurer by absorbing over 90 percent of the risk underwritten on any resulting claims. The arrangement increases APA’s capacity to insure an individual property or that of an SME of up to a maximum of Sh265 million. Higher value properties will be covered under a separate agreement

The APA Political Violence reinsurance cover is the third such cover provided by ATI to Kenyan-based insurer. ATI is already in partnership with Jubilee and UAP insurance agencies offering similar covers

ATI expects to announce additional political violence reinsurance deals in 2010 with insurance companies in Kenya and Uganda as well as other markets that have experienced civil unrest in recent months.

Source:capitalfm.co.ke/

Kenyan tea prices ease slightly, volumes up

NAIROBI (Reuters) - The price of top Kenyan Broken Pekoe Ones (BP1s) eased to an average $4.20 per kg from $4.44 per kg last week, brokers said on Wednesday.

Best BP1s sold at between $4.55 and $3.85 per kg at the weekly auction in Mombasa, compared with $4.72 and $4.16 per kg last week, Africa Tea Brokers (ATB) said in their market report.



BP1 prices set a record of an average $5.45 per kg in mid December.



"There was fairly good demand for the 137,105 packages... on offer at easier rates with some teas remaining unsold," ATB said.



Brighter Pekoe Fanning Ones (PF1s) sold at between $3.28 and $2.96 per kg compared with $3.47 and $3.18 per kg at the last sale.



Kenya is the leading exporter of black tea globally. Prices hit record highs last year after a long spell of dry weather reduced supply.



ATB said 21,580 of the packages offered remained unsold. Last week 115,308 packages were offered, with 18,577 unsold.



Yemen, other Middle Eastern countries and Afghanistan bought more tea than last week, as did Pakistan Packers and Sudan, ATB said.



United Kingdom and the Egyptian Government Sector bought less tea than last week while Egyptian Packers, Kazakhstan and Russia bought similar amounts as last week, ATB added.

Source:af.reuters.com/

Kenya shilling firms vs dollar, may gain further

NAIROBI (Reuters) - The Kenyan shilling strengthened against the dollar on Thursday, after touching the 76.00 level in the previous session, which traders said was a natural correction ahead of the festive season.

At 0755 GMT, commercial banks quoted the local unit at 75.70/80 per dollar compared with Wednesday's close of 75.90/76.00.

Traders said the move was a predictable stabilising of the shilling after recent pressures on it as importers had made last minute festive purchases.

"It is a natural correction after recent losses," said Benson Kaburu, a senior trader at Standard Chartered Bank.

Traders said they expect the shilling to stay rangebound for the rest of the month between 75.40 and 76.00 because trading will slow for the Christmas period.

"It is going to be a very dull rest of the month. With lots of people off for the festive season I don't expect much activity until next year," Kaburu said.

However, traders at Bank of Africa expect some muscling by the shilling on the back of dollar inflows by Kenyans abroad sending their families some spending money for the holidays.

Tea and horticulture exporters are also expected to give the local currency a boost and a 20-year Treasury bond issued by the government on Wednesday may draw some foreign investor demand, they said in a regular market report.

Source:af.reuters.com/