Kenyan retail giant Naivas Supermarket has received a Sh134 million insurance payout from CIC Insurance Group for property damage incurred during the Gen Z protests on 25 June 2025, marking one of the most significant political risk insurance settlements in the country’s recent commercial history.
The payout underscores the growing challenges businesses face in an era of civil unrest and the importance of comprehensive insurance strategies for large enterprises operating in volatile environments.
The compensation, issued under a Political Violence and Terrorism (PVT) policy extension, covers structural damage, losses from looting and vandalism, and related costs at several of the retailer’s outlets, notably in Nyeri town, Nairobi’s Mountain Mall, and Naivasha.
These locations experienced extensive property destruction during the protests, which began as peaceful demonstrations but quickly escalated into widespread unrest and criminality in some areas.
Naivas Group, a dominant player in Kenya’s retail sector with over 100 stores nationwide and thousands of employees, described the payout as a vital step in its ongoing recovery efforts.
“Our partnership with strong insurance firms is critical,” said Naivas Group Chief Executive Officer Andreas Von Paleske at the official handover ceremony in Nairobi.
He stressed that the payout would help stabilize operations and restore investor confidence following months of disruption.
The Sh134 million settlement contributes to a broader insurance relationship between Naivas and CIC.
Over the past 12 years, CIC Insurance has paid out Sh392 million in claims to the supermarket chain, with approximately Sh300 million issued in the last two years alone, primarily related to political unrest.
The frequency and scale of recent claims highlight how social and political instability is reshaping commercial risk in Kenya.
At the handover event, Patrick Nyaga, Group Managing Director and CEO of CIC Insurance, emphasized the increasingly complex landscape of business risk.
“Risk management is critical for both businesses and their customers,” Nyaga said, urging enterprises to adopt forward-looking strategies that anticipate not only common commercial exposures but also exceptional events such as political demonstrations and associated criminal behaviour.
The Gen Z protests, which began as youth-led demonstrations advocating cost-of-living and governance reforms, drew large crowds across major Kenyan cities.
Although largely peaceful in pockets, certain demonstrations deteriorated into clashes with security forces and opportunistic looting, inflicting significant damage to retail stores, supply chains, and community infrastructure.
Security agencies noted that looters sometimes infiltrated peaceful protests, amplifying losses for businesses and complicating post-event assessments.
In Nyeri town alone, local business leaders reported property losses and stolen merchandise valued at tens of millions of shillings, provoking community discussions about proactive security measures to protect commercial assets in future protests.
These discussions have included proposals for private security partnerships and enhanced collaboration with law enforcement agencies to safeguard business districts.
Such patterns of damage have prompted industry experts to warn that Kenya’s commercial sector may be facing a trend of escalating insurance claims, particularly where specialized coverages like PVT are involved.
Political risk insurance products, such as PVT policies, have become increasingly relevant across Africa, where social unrest can disrupt business operations and deter inward investment.
Fred Ruoro, General Managing Director at CIC, observed that the 2025 claim assessment revealed the “magnitude of the loss” was significant, reflecting how unrest can swiftly translate into large-scale economic impact for corporate entities.
The financial implications of such insurance claims extend beyond Naivas. Retailers across Kenya have faced inventory losses, damaged infrastructure, and disruptions in sales and supply chains.
Despite the challenges, Naivas’ leadership maintains an optimistic outlook. With the insurance settlement now secured, the company plans to continue its growth trajectory and reinforce operational resilience in all key markets.
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