Powerstar Supermarket has received KSh62.16 million in insurance compensation after its Naivasha branch was completely destroyed during political violence and rioting in May, highlighting the financial risks facing Kenyan businesses during periods of civil unrest.
The settlement, amounting to KSh62,159,055, was paid by Fidelity Insurance following a claims process coordinated by insurance broker and risk adviser Minet Kenya.
The payment was released just 15 days after Powerstar accepted the insurer’s settlement offer, providing the retailer with funds to begin recovering from the destruction of its premises and merchandise.
The supermarket suffered extensive property damage and lost its entire stock after the incident left the premises completely razed. The loss was assessed as a total loss, placing significant financial pressure on the business.
Powerstar had taken out a Political Violence and Terrorism (PVT) insurance policy, which covered losses arising from the incident. Such specialised cover is important because ordinary commercial insurance policies may exclude damage caused by riots, civil commotion and political violence unless specific extensions are included.
Minet Kenya played a central role in coordinating the compensation process, working with Powerstar, Fidelity Insurance and the appointed independent loss adjuster.
The broker advised the supermarket on immediate post-incident requirements, including scene management and the preparation of supporting documents. It also coordinated the assessment process, reviewed the final loss adjustment report and helped the retailer evaluate the insurer’s compensation offer before accepting it.
Minet subsequently followed up with Fidelity to facilitate the release of the funds.
Eric Rugo, Minet Kenya's Risk Solutions Director, said the settlement demonstrated that having insurance cover was only one part of protecting a business, with effective claims management determining how quickly a company could recover after a major loss.
The payout comes as Kenyan insurers face growing exposure to claims arising from political unrest, demonstrations and vandalism targeting commercial properties.
In a separate case, Naivas Supermarket received KSh134 million from CIC Insurance in compensation for properties damaged during the June 2025 Gen Z protests. The claims covered losses at outlets including Nyeri, Mountain Mall in Nairobi and Naivasha.
The two cases illustrate the importance of specialised insurance protection for retailers, manufacturers and other businesses operating in areas exposed to civil unrest.
For businesses, the financial consequences of riots can extend beyond damaged buildings and destroyed stock to include interrupted operations, lost revenue, supplier obligations and pressure on working capital.
The Powerstar settlement also demonstrates the importance of understanding policy exclusions and ensuring that insurance arrangements explicitly cover political violence, riots and civil commotion where businesses face such risks.
