September 19, 2021 remains fresh on Cate Simiyu’s mind. It was the day a Sh. 700,000 business investment she had built from scratch crumbled in a fire disaster.
Her business journey began in January 2014 when Simiyu moved to Nairobi in search of greener pastures after completing her secondary school education.
Determined to change the financial situation back home, which denied her a chance to join a higher learning institution, Simiyu was lucky enough to secure employment in a manufacturing firm in Nairobi’s industrial area.
She engaged in a basic household items business on the sidelines to supplement her low wages, hawking curtains and beddings in Nairobi’s Eastlands during weekends and off days.
The business blossomed when she took it online. In May 2014 , she received a message from a Nakuru hotel requesting her to supply some bed sheets, marking her first steps to glory.
”They asked me if I could supply a few bed sheets in the following month. At first, I was hesitant because of the distance and I thought they were cons. I was new in business and was afraid of large moves. But I took a bold step and accepted the business,” she says, adding that she pocketed Sh. 80,000.
After seeing the potential in her business, Simiyu decided to quit employment to fully focus on the business. She started selling second-hand baby clothes, shoes, as well as buying pishori rice from Mwea to sell in Nairobi.
With Sh. 150,000 capital, Simiyu took a Sh. 50,000 loan from the Co-operative Bank, opened a wholesale and retail shoe business along Fedha Road in Embakasi. ”I had opened a bank account where I had been saving proceeds from my bedsheets business. I knew that at some point I would need financing to expand my business,” she says.
The business picked well in the market. “It proved to be a good move. Business was doing good and I started contemplating taking a fresh loan to expand even further once I completed my payments,” she says.
Five years later, on the evening of September 19, 2021 though, things went south! She closed her shop as usual and left for home in Utawala. Shortly after arriving, Simiyu got the phonecall that sent shivers down her spine. Fire had broken out in a neighbouring shop and was spreading to her shop.
”By the time I got back, the whole shop was on fire. I watched everything go down in flames,” she says. In a matter of minutes, everything she had worked so hard for was gutted down. “The loss was incomprehensible. I had just brought in new stock. All my capital and savings were in that shop,” she says.
Co-op Bank giving Sh. 500k to Sh. 8mn loans to buy, build home at 9.9% reducing balance
She says that the cause of the fire was not clearly established, but the police and fire fighters who responded suspected electrical faults. She lost Sh. 700,000 in that incident.
Simiyu says that she would have retired to the village were it not for a business camp her bank had hosted for small and medium enterprises, and in which she had taken an insurance package designed for micro, small and medium businesses.
”I was fortunate; I had the Co-op Bank’s SME cover which helped me get back on my feet,” she says. Her neighbour was not so lucky.
Simiyu recalls that even before her compensation was finalized, her bank had initiated financial help to get her back in business. “The relationship manager got in touch multiple times asking about my welfare and proposing ways I could start earning again. They also restructured my loan to give me time to rebuild,” she says.
Two years later, Simiyu says that she has fully recovered and gone on to open two more shops within Embakasi. “I still sell shoes but have also opened shops for modern curtains and beddings, and kids’ wear” she says. “I also supply Mwea Pishori rice in bulk and demand.”
A spot check on the type of insurance that saved her skin shows that the Co-operative Bank of Kenya has an MSME insurance package that protects your business from any financial loss. With the package, the business is covered in a lump sum based on the risks that it may face.
The packages available include the SME Cover, the Personal Accident Cover, and the Micro Cover.
The SME Cover
This is a structured cover depending on your needs with competitive prices. Most risks that your business might face are covered in this package. What is more, you can have several policies insured under one package with competitive premiums for all classes.
The Personal Accident Cover
Under this, your business will be covered against personal accident risks with political violence and terrorism included and it can be bought alongside an account.
The Micro Cover
Under this product, all your assets will be insured. Your business will also be covered against burglary, and a personal accident cover is given to you as the business owner.