Export Import Trade: The exportation and importation business is not for the fainthearted. It is prone with possible losses that range from damaged goods to wrong good being delivered. It is also a costly affair that can put your business asunder if not well handled.
In many given instances, the possibilities of these losses has kept many entrepreneurs away from the export and import sector. But now, aspiring business people can now join the ship. This follows the launch of an insurance package by the Co-operative Bank of Kenya that is designed to protect small, medium, and large business owners from losses.
Currently, the Kenya Revenue Authority (KRA) requires importers to use local insurers for marine insurance. This means that local entrepreneurs now have the option of doing business with an insurer who has a solid financial foundation and establishment as one of the leading banks in Kenya. One of the main concerns of the local importers and exporters has been the ability of local insurers to handle large imports or exports. However, this is not going to be a concern, with Co-op bank’s capital base and profitability record.
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According to a statement from the bank, the kinds of businesses that can be covered ranges from SMEs who import cars, and cargo containers to individual businessmen and women who import personal items like cars or furniture.
According to Elizabeth Ajaji, an expert in the insurance sector, this means that the lady who imports bales of mitumba (second-hand) clothes at Gikomba will no longer have to worry about incurring losses or damage to their goods while in transit, risks of delay, failure of goods to turn up, or receiving goods they never ordered for.
“This is bound to be a relief for the growing import sector that previously had to contend with the possibility of attracting unforeseen marine losses. For instance, the world bank’s Kenya Economic Update notes that import of goods and services are projected to increase by 7.6 per cent this year,” she says.
Interestingly, apart from receiving maritime insurance, business owners will also be eligible for financing. “Apart from running your business insured, we will also be offering loans to ensure that you do not miss out on opportunities or get your cargo delayed due to financial hiccups,” says Co-op Bank in a statement to Bizna Kenya. Other additional services will include money transfer solutions.