Inflation hit motor insurance

According to the Association of Kenyan Insurers, the recent rise of motor tariffs is accounted for by the weakness of the shilling. The depreciation of the local currency is believed to be at the origin of the rising prices of spare parts and the decline in the import of second-hand cars from Japan. It is the combination of both factors that triggered the rise in the cost of the cars available on the market. Insurers, who systematically reassess car prices prior to any policy renewal, find themselves compelled to apply highly growing premiums.