Why insurers are now betting against the national grid

Home appliances are now protected against power surges and accidental damage as Kenya faces rising grid instability.

As Kenya's household appliance market grows rapidly, insurers are offering new ways to protect consumer electronics, with point-of-sale insurance emerging as a key response to grid instability.

Kenya's electricity demand hit a historic peak of over 2,360 megawatts in 2025, straining an ageing transmission network.

Thin reserve margins mean even small technical faults can trigger blackouts or voltage fluctuations, damaging household electronics.

While the Energy Act allows consumers to claim compensation for damaged equipment, the process is slow and bureaucratic.

Households must report incidents within 24 hours, prove negligence, and wait months or years for resolution, effectively paying a "private tax" for public inefficiency

Britam General Insurance, Hotpoint Appliances, and MIC Global Risks have partnered to offer automatic, 12-month all-risks insurance on select appliances purchased at Hotpoint outlets or online.

The cover protects against accidental damage, fire, water, theft, transit loss, power surges, and political violence, with a repair-or-replace guarantee.

Customers receive a digital insurance certificate at checkout and can make claims through Britam's online portal.

"Most consumers do not proactively purchase insurance for their household appliances, yet these items are increasingly essential to day-to-day living. By embedding cover into the purchase journey, we are meeting customers where they are and making protection accessible, seamless and relevant," said James Mbithi, Britam General Insurance CEO and Principal Officer. With electronics worth hundreds of thousands of shillings connected to a single, unreliable socket, the stakes for middle-class households are higher than ever.

Ravi Kanani, Hotpoint Appliances CEO, said the partnership reflects the company's commitment to delivering value beyond quality products. "By offering automatic insurance cover at no additional cost, we are elevating the customer experience and ensuring they enjoy complete confidence in every appliance they bring home," he said.

Puneet Chawla, Chief Operations Officer and Principal Officer at MIC Global Risks, noted the collaboration ensures customers enjoy peace of mind from the moment they purchase their appliances.

While the Energy Act 2019 theoretically grants consumers the right to compensation for surge-related damage, operational reality remains sluggish.

The Energy and Petroleum Regulatory Authority is reviewing draft regulations that would require Kenya Power to settle claims within 90 days, but enforcement is still pending.

Until then, households carry the burden of proof. Britam's embedded insurance provides an immediate commercial solution, effectively beating regulators to the punch.

At the same time, the Insurance Regulatory Authority's 2025 strategic guidelines encourage micro-insurance and embedded products, creating a regulatory sandbox for household coverage.

Hotpoint will provide customer support and product verification through its nationwide service centres, MIC Global Risks will support seamless delivery of the product offering, and Britam will underwrite the policy and oversee claims.