Insurance costs for businesses and property owners could rise as Kenya approaches the 2027 General Election, with reinsurers expected to reprice political risk coverage due to heightened uncertainty and the country's history of election-related unrest.
George Kuria, CEO of SanlamAllianz General Insurance Kenya, says that reinsurers are likely to adjust their rates in response to Kenya's election cycle, a move that would cascade down to insurers and ultimately policyholders.
"We expect reinsurers to adjust their rates slightly upwards due to the increased political activity, and insurers may have to reflect that in premiums," Kuria said.
He urged individuals and businesses to secure insurance coverage at current rates before any market-wide repricing takes effect.
Kuria pointed to recent chaos that were witnessed in Kitengela during a rally led by Nairobi Senator Edwin Sifuna as a reminder of the risks businesses face during periods of heightened political activity.
"What we saw happen in Kitengela the other day is a reminder of risks businesses face and at SanlamAllianz we are ready to provide protection to businesses and property from losses that result from such risks," he said.
Kenya has experienced recurring episodes of political tension around election cycles since the return to multiparty democracy in 1992. Several polls have been accompanied by unrest and business disruption, both before and after voting.
Most recently, violent demonstrations during the 2024 Finance Bill protests and nationwide demonstrations last year resulted in deaths, injuries and widespread property destruction. For insurers, such events drive up claims under political violence and terrorism, property damage and business interruption policies.
SanlamAllianz General Insurance was formed in November last year after the merger of Jubilee Allianz General Insurance and Sanlam General Insurance, creating one of Kenya's well-capitalized general insurers.
Kuria said SanlamAllianz is in a stronger position to support clients even during volatile periods.
However, he cautioned that pricing ultimately depends on reinsurance markets, meaning sustained political uncertainty could push premiums higher across the insurance industry.
