Musoni Microfinance yesterday compensated 12 borrowers affected by a devastating fire that swept through Toi Market on the 11th of June, 2023, leaving over 2,500 traders counting losses worth millions of shillings, with their stalls and livelihoods destroyed under unclear circumstances.
The loan compensations of 1.2 Million KES are claim payouts from the embedded credit-linked insurance Musoni includes in all its loans. Powered by insurtech, Turaco (registered in Kenya as Ellard Insurance Agency Ltd), and underwritten by APA Insurance, this insurance provides a vital safety net for all Musoni borrowers.
According to Musoni’s CEO, Barbara Asumadu, “At Musoni, our purpose is to empower individuals and uplift communities through accessible financial solutions. We are dedicated to providing not just loans, but comprehensive support that truly meets the needs of our borrowers. By extending embedded insurance, we reinforce our commitment to safeguarding their financial well-being and resilience, ensuring that they have the necessary tools to rebuild and thrive in the face of adversity. We are honored to fulfill that commitment today.”
Traders in bustling second-hand markets like Toi Market face an elevated risk of fire incidents due to land disputes and other factors. However, Musoni’s embedded credit-linked insurance has cushioned these Toi Market traders from over-indebtedness as they grapple with the loss of their businesses and provide them with a lifeline for rebuilding.
The credit-linked insurance cover is a value-add included in all Musoni loans. It protects borrowers by covering loan repayments in case they are hospitalized, lose property due to fire or allied perils, or in the unfortunate event they pass on. Through Turaco’s high-tech approach, the cover is automatically activated for all new loans and claims can be processed quickly. Turaco, with APA as the underwriter , have worked to ensure a fast claim payout within the last month to enable the Musoni borrowers to begin to rebuild their businesses.
“Kenya’s economic backbone relies significantly on small-scale businesses, with over 80% of Kenyans actively engaged in this sector. Ensuring the safeguarding of these businesses from unexpected circumstances holds immense importance in enhancing livelihoods of business owners and fostering the nation’s prosperity. To fulfill this commitment, APA is dedicated to offering affordable insurance products tailored specifically to SMEs. Today we take pride in supporting the Toi market traders,” stated Ashok Shah, Group CEO of APA Apollo Group.
Turaco Kenya General Manager, Bryan Nyutu, emphasized, “With Turaco’s technology, microfinance institutions, like Musoni, can seamlessly and instantly add insurance to loans, ultimately enhancing consumer protection. Today’s event demonstrates the success of collaborations between microfinance and insurance institutions to provide tailored, affordable products to borrowers that prevent over-indebtedness in the face of adverse shocks.”