Starting and growing a business from scratch is not an easy task, and it pains a lot watching investments worth millions reduced to ashes by people who don’t know the pain of building a business.
The recent political unrest is a prove that you can build something for years and lose it in a second, even before enjoying its glory.
Watching business owners weep in public for losing their only economic mainstay was not only heartbreaking, but it was also a wake-up call to both the government and individual investors to lay down mechanisms that ensure businesses are protected should the unexpected happen.
This is due to the crucial roles these enterprises play. If the environment is hostile, it means investors will run away, and the entire economy will be bleeding as unemployment rate goes up and slow economic growth takes charge.
Forget about the economy, now let’s look at the harm these destructions cause to investors. Some of the victims of vandalism and looting have found themselves battling serious diseases as they struggle to come to terms.
When Bizna Kenya visited Faith Mumo, one of the Nairobi investors who lost their business to political instability, she was still in shock, one year after watching her multimillion business reduced to ashes on the 5th floor of a building along Mfangano Street, Nairobi.
Faith lost her business in the 2024 June 25th protests after the building she was operating from was torched by goons.
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“That building hosted around 50 shops, and all of them were burnt down. That day we had not opened because we knew things would be bad in town. So while at home around 5PM the management shared on the WhatsApp group that the building had been set on fire,” She recalled.
Even though in disbelief, Faith, who was a wholesaler of kitchenware, remained hopeful that she would collect a few items from the shop, which was on the 5th floor of the building.
“I visited the premises the following day after the protests and found everything had been completely burnt. I felt like I was in another world coz that was my only source of income. I fell into depression, and I can say that my life has never been the same again,” she added.
The mother of 3 revealed she started the business, which was worth Sh3 million, in 2016 after years of working as a waitress earning Sh15,000 per month.
As she puts it, “preparing for the unknown is important in business,” as this is what shielded her from going back to employment or retreating to the village like some of her colleagues.
Faith had business insurance and was able to get some compensation to restock her business.
“I saw the need for insurance after my friend lost his business in a similar way. He was compensated and was back in business like nothing had happened. He encouraged me to get one and in indeed learned that in business you should always prepare for the unknown,” she added.
Asked about the insurance cover, Faith said she is a beneficiary of the Co-op Bank MSME Insurance, which protects businesses from any financial loss.
“Co-op Bank is my business partner. I have banked with them for so many years and have also benefited from their loans. So I decided to continue with the partnership even in the insurance sector,” she added.
A look at the Co-op Bank MSME Insurance shows that the product consists of a personal accident cover and a Micro cover.
The personal accident cover ensures the client is covered against personal accident risks, including political violence and terrorism.
On the other hand, the Micro Cover ensures the customer’s assets are insured and also offers protection against burglary risks.
Personal accident cover is also given to the business owner, with the last expense also given. This cover can be bought alongside an account.
As Faith looks back, she encourages business owners to take advantage of insurance. She currently operates her kitchenware business from RNG Plaza, along Ronald Ngala Street Nairobi.
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