Powerstar Supermarket has received Ksh 62.16 million in insurance compensation after its Naivasha branch was reduced to rubble during political violence and rioting in May 2026, bringing an important financial reprieve to the retailer after losing its business premises and merchandise.
The settlement, paid by Fidelity Insurance, was completed 15 days after the supermarket accepted the insurer’s compensation offer. Minet Kenya, which provides insurance brokerage and risk advisory services to the retailer, helped coordinate the claim and follow up on the payment.
The payout of Ksh 62,159,055 highlights the financial exposure businesses face when civil unrest turns commercial premises into targets of destruction. For retailers, such losses extend beyond damaged buildings. Shelves, stock, equipment and other assets can disappear in a single incident, leaving businesses with substantial replacement costs and interrupted revenue.
Powerstar’s Naivasha premises suffered extensive destruction during the May incident. The damage was assessed as a total loss, making insurance compensation an important part of the supermarket’s efforts to recover financially.
The retailer had a Political Violence and Terrorism insurance policy with Fidelity Insurance, which provided cover for the losses arising from the incident.
Why insurance claims can determine how quickly businesses recover
The Powerstar settlement brings attention to an important distinction in commercial insurance: having a policy does not automatically translate into immediate compensation.
After a major loss, businesses must establish what was destroyed, provide supporting documents, cooperate with loss assessors and agree on the amount payable under their policies. Delays or disagreements at any of these stages can prolong an already difficult recovery process.
In Powerstar’s case, Minet Kenya helped coordinate the process between the supermarket, Fidelity Insurance and the appointed loss adjuster.
The broker guided the retailer on the immediate steps required after the incident, including managing the affected site and preparing the documents needed to support its claim.
It also coordinated the exchange of information required during the damage assessment and reviewed the final adjustment report before the supermarket considered the insurer’s offer.
Once Powerstar accepted the proposed settlement, Minet Kenya continued following up with Fidelity Insurance until the money was disbursed.
Minet Kenya Risk Solutions Director Eric Rugo said the case demonstrated that the effectiveness of an insurance policy depends partly on how claims are handled when businesses suffer losses.
“The outcome highlights a frequently overlooked aspect of business risk management. While securing appropriate insurance cover is fundamental to protecting business assets, the value of that protection ultimately depends on how effectively a claim can be managed when a loss occurs,” Rugo said.
He added that the settlement demonstrated the importance of working with an experienced partner who understands the technical and practical aspects of insurance claims.
Businesses face growing need to protect physical assets
The destruction of Powerstar’s premises illustrates how political violence can create financial problems for businesses that have little control over events unfolding around their operating locations.
Unlike ordinary operational expenses, losses arising from riots and civil unrest can involve extensive damage within a short period. A retailer may lose its building, inventory and ability to serve customers at the same time.
The resulting disruption can affect cash flow, supplier relationships, employees and the company’s ability to maintain its market position.
For this reason, businesses need to assess risks beyond theft, fire and ordinary property damage. Political violence, terrorism and civil unrest require specific consideration when companies select insurance policies.
They must also examine policy limits, exclusions and the conditions attached to compensation to establish whether their cover matches the value and nature of their assets.
The KSh62.16 million settlement offers Powerstar financial relief following the destruction of its Naivasha branch. It also illustrates the role commercial insurance can play in absorbing unexpected losses and helping businesses manage the financial consequences of major disruptions.
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