Insurance providers in Kenya have been challenged to develop gender responsive insurance products that will ensure women-led businesses do not collapse in the event of economic shocks.
New Faces New Voices (NFNV) Kenya in partnership with Kayana has announced the creation of client-centric, innovative approach to help women-led businesses develop financial resilience through insurance uptake.
NFNV Chairperson Caroline Armstrong-Ogwapit said NFNV which is a network organization under the Graça Machel Trust (GMT) is targeting to enhance financial and economic resilience of women-led businesses using insurance products for risk mitigation in order to enable small businesses survive shocks and give them a solid platform to grow.
“Women-owned small businesses are helping to power Kenya’s small business boom and New Faces New Voices remains committed to ensuring women access the capital, resources and skills they need to build resilient businesses and create jobs to fuel our economy,” she said.
The partnership targets to equip female entrepreneurs with the knowledge and tools necessary to leverage insurance for their business continuity and growth.
NFNV said it has engaged multiple insurance companies in the long programme to ensure that the entrepreneurs’ needs are at the centre of the solution design.
“Insurance is a critical tool for businesses of all sizes, but it is especially important for female MSMEs and SMEs, who are often more vulnerable to economic shocks and business disruptions,” added Wangeci Gitata-Kiriga, NFNV Vice-Chairperson.
A 2022 study by Viffa Consult titled revealed that only 26pc of women-led Small and Medium Enterprises in Kenya have insurance cover with only a minority of that having any business-related insurance.
“The ultimate objective of this collaborative initiative was to facilitate the co-creation of a gender responsive insurance product specifically designed to address the unique needs of female entrepreneurs in Kenya,” said Kayana co-founder Patricia Okelo.
NFNV and Kayana convened a pilot group of women-led businesses to raise their awareness about the risks their businesses face and how to mitigate those risks.