This archive report was first published on 6 December 2021.
Published on December 6, 2021, the Covid-19 pandemic has had a devastating impact on the Savings and Credit Cooperatives (Saccos) sector in Kenya.
According to the CIC Insurance Group, insurance claims for Saccos have risen five-fold in the last two years, with death, funeral, and medical covers being the most common claims.
The pandemic has led to a significant loss of lives, unpaid loans, and a decline in business for Saccos, resulting in a surge in insurance claims.
Speaking at the CIC Insurance Group's Annual Cooperative Summit in Naivasha, Chief Executive Patrick Nyaga noted that the insurer had paid out Sh1.7 billion in claims between January and September this year.
“The pandemic led to a loss of lives and unpaid loans, and we moved in to cover this as part of our contract with the Saccos,” Nyaga said.
Tembo Sacco Chief Executive Lydia Mungai echoed Nyaga's sentiments, stating that hundreds of their members struggled to service their loans while others lost their lives due to the pandemic.
“In the last two years, the claims that we presented to CIC went up five times due to the number of deaths and unpaid loans caused by the pandemic,” Mungai said.
