Powerstar Supermarket has received KSh 62.16 million in compensation for its Naivasha branch, KBC and Business Today Kenya reported. Political violence and rioting in the area destroyed the branch in May this year. Fidelity Insurance paid the claim. Minet Kenya, the retailer's insurance broker and risk advisor, managed the process.
According to KBC, the May riots completely razed the supermarket's premises. The retailer lost both its property and its merchandise. The damage was assessed as a total loss, which put heavy financial pressure on the business. KBC said recovering the insured losses was a critical step towards rebuilding. Business Today Kenya reported that the settlement was completed within 15 days of the supermarket's acceptance.
Eric Rugo, Minet Kenya's Risk Solutions Director, said the case highlights "a frequently overlooked aspect of business risk management." He said the right insurance cover is fundamental to protecting business assets. However, he added that the value of that cover depends on how well a claim is managed after a loss.