Kenya crisis to hurt insurers
The persistence of post-election violence in Kenya will cause losses to the insurance industry in Uganda, experts have warned. “Although we have not yet seen direct losses coming through, we believe if the situation does not change in the long run, the industry will be affected,” Deepak Pandey, the general manager of Jubilee Insurance Company, explained.
Pandey said the situation would reduce the volume of goods and fuel in transit, which will affect business activity in the country and consequently spill over into insurance companies’ sales. He said there were signs that the situation would improve. “I am optimistic everything will be okay soon since the warring parties are showing more signs of engaging in dialogue,” Pandey added.
Many economic activities in Uganda have been badly shaken by the instability in Kenya. The violence has left over 650 people dead and over 250,000 displaced. There are, however, hopes that involvement of international mediators is likely to ease the tensions between warring factions and see order restored in Kenya.
The energy minister, Daudi Migereko, recently revealed plans of an alternative route via the Tanzanian port of Dar salaam for goods destined for Uganda.
http://www.newvision.co.ug/D/8/220/607674
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