AIG inks Sh900m terrorism cover deal for foreign tourists

Tourists arrive at the Moi International Airport in Mombasa this month. Travel advisories against Kenya have adversely affected the tourism industry. PHOTO | KEVIN ODIT 

By GEOFFREY IRUNGU, girungu@ke.nationmedia.com

In Summary

• The Kenya Association of Tour Operators, the Kenya Association of Hotel Keepers and Caterers and the Kenya Coast Tourist Association have signed the deal so that inbound travellers from the countries can be insured against any adverse happenings while touring the country.
• Each individual tourist is covered to the tune of $100,000 (Sh9 million) while on a tour of the country starting from the time they begin the journey to Kenya and up to the time they depart for their home countries.

Underwriter AIG Insurance has signed a Sh900 million deal with local tourist associations to cover visitors from countries that issued travel advisories against Kenya in the past few months.

The Kenya Association of Tour Operators, the Kenya Association of Hotel Keepers and Caterers and the Kenya Coast Tourist Association have signed the deal so that inbound travellers from the countries can be insured against any adverse happenings while touring the country.

With the travel advisories by the UK, US, Australia and France, the number of visitors to Kenya has gone down this year.

UK Foreign and Commonwealth Office softened its advisory, but still advised against all but essential travel to Eastleigh in Nairobi and all affected areas such as within 60km of the Kenya-Somalia border, Mombasa Island, Lamu and Tana River areas.

Latest data from the Kenya National Bureau of Statistics (KNBS) show visitors through the Jomo Kenyatta International Airport in Nairobi and Moi International Airport, Mombasa, have been lower this year than last year on month-on-month basis.

In July, 86,666 visitors arrived in Kenya through the same airports compared to 123,012 in the same month last year, which amount to a 30 per cent decline.

READ: Terror attacks crush Kenya's coastal tourism industry

The insurance is such that each individual tourist is covered to the tune of $100,000 (Sh9 million) while on a tour of the country starting from the time they begin the journey to Kenya and up to the time they depart for their home countries.

“We have made the arrangements with the three organisations because it now encourages tourists to come knowing they are covered,” said Walter Orato, AIG assistant general manager in charge of accident and health insurance.

Mr Orato said the advisories have had a negative impact on people wanting to travel unless the risks they are likely to encounter are covered.

The associations, however, did not respond to requests for comment on the new insurance plan.

The travel alerts issued by the governments of the source countries have meant underwriters in those countries are legally barred from insuring the travellers.

Previously, AIG was only insuring travellers from other East African countries. While the regional business continues, that from the European countries, the US and Australia is far much bigger.

The travel bans came in the wake of several attacks at the Coast and other regions by Al- Shabaab, a terrorist group claiming to be retaliating against Kenya’s military action in Somalia.

Besides the Coast, other parts of the country including Nairobi, Mandera, Wajir and Garissa were attacked.