IRA Trains MSMEs in Taita Taveta on Insurance Awareness and Risk Management » Capital News

TAITA Taveta, Kenya, Feb 22 – Sixty Micro, Small, and Medium Entrepreneurs (MSMEs) in Taita Taveta County have been trained on risk management and insurance awareness as part of ongoing efforts to promote insurance awareness and consumer education by the Insurance Regulatory Authority (IRA).

This initiative aligns with IRA’s mandate to promote the development of the insurance industry while regulating, supervising and protecting the interests of policyholders.

The 2-day training equipped MSMEs with knowledge on insurance concepts, the significance of insurance in business sustainability, and strategies for effective risk management through insurance products.

Insurance serves as a crucial risk management tool, ensuring business continuity in the face of unforeseen challenges.

“MSMEs form the backbone of Kenya’s economy, yet many remain vulnerable to financial shocks due to lack of adequate risk mitigation strategies. Through this training, we aim to bridge the knowledge gap and encourage entrepreneurs to embrace insurance as a safety net for their businesses,” said Ms. Anne Chelagat, Director – Market Conduct at IRA, who led the training. She also emphasized the importance of targeted consumer education efforts in bridging the insurance gap.

“Empowering MSMEs with the right knowledge on insurance is a critical step towards enhancing their resilience and ensuring sustainable economic growth. This training provides entrepreneurs with practical insights into risk management and help them make informed decisions on suitable insurance products for their businesses,” she added.

A recent study by the Authority revealed that 63% of MSMEs in Kenya lack any form of insurance.

While larger businesses tend to rely on formal insurance mechanisms, smaller enterprises often depend on informal methods, leaving them highly exposed to risks.

This training seeks to address these disparities and foster a culture of proactive risk management among entrepreneurs.

According to the 2023 Insurance Industry Report, Taita Taveta is among the 40 counties that collectively contribute only 7 percent of Kenya’s total insurance premium, highlighting the urgent need for targeted consumer education efforts.

With Nairobi alone accounting for 82.3 percent of the premium, bridging this gap requires localized interventions including consumer education and awareness initiatives.

By equipping entrepreneurs with essential insurance knowledge, the Authority aims to stimulate insurance uptake, enhance financial resilience, and ensure businesses in Taita Taveta can effectively manage risks and thrive.

Participants also gained a deeper appreciation of insurance benefits, better knowledge of available products, and the ability to assess their insurance needs effectively.

The initiative is part of IRA’s broader goal of increasing insurance penetration across the country by ensuring all sectors, including MSMEs, make informed choices.