Absa Bank Kenya has teamed up with Old Mutual Kenya to launch Linda Biz, a comprehensive and affordable insurance product tailored to the unique needs of Small and Medium Enterprises (SMEs). 

This innovative solution aims to provide extensive protection for business assets, mitigate risks, ensure employee health, and facilitate seamless business continuity.

Linda Biz is the first product of its kind in the market, offering a holistic approach to insurance.

It combines asset, medical, and life insurance into one package, addressing the specific risks faced by SMEs and enabling them to build resilience in today's ever-changing business environment.

During the launch event, Absa Bank Kenya MD and CEO Abdi Mohamed highlighted the critical need for investment in the SME sector.

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He noted that SMEs, which contribute significantly to the economy, have historically been underserved by traditional insurance solutions.

“At the heart of our Bank is the SME sector, which accounts for 30 per cent of the GDP of our economy. This strategic partnership is anchored on our mutual goal to introduce customized and bespoke insurance solutions that directly address the unique requirements of our SME customers,” Mohamed stated.

"A key focus is on simplifying SMEs’ access to insurance solutions and driving sustained growth to ensure long-term success and resilience of our customer while also supporting efforts to drive insurance penetration in the country."

Linda Biz offers an array of benefits, including coverage for losses due to fire, political violence, riots and strikes, floods, business interruption, burglary, loss of money, and theft by employees.

Additionally, it provides coverage for employee injury, disablement, or death under the Work Injury Benefits Act (WIBA).

The product also includes comprehensive medical insurance with inpatient, outpatient, dental, optical, and maternity cover options.

Noteworthy benefits such as hospital cash benefits and lifetime cover are part of the package.

Furthermore, Linda Biz encompasses life insurance that pays a lump sum in the event of death, disability, or diagnosis of a critical illness.

Old Mutual Group CEO Arthur Oginga expressed his excitement about the partnership, highlighting its potential to empower SMEs across Kenya.

“We are thrilled by the launch of this pioneering partnership designed to empower Small and Medium Enterprises (SMEs) across Kenya. SMEs form the backbone of our country’s economy and as such, need enhanced support from financial service providers to derisk their businesses," Onginga remarked.

Linda Biz introduces a comprehensive suite of insurance products uniquely tailored to meet the specific needs of SMEs, ensuring they can thrive in today's dynamic business landscape.”

“Among many other benefits, this seeks to address issues affecting SMEs including asset protection, employee health and business continuity," Oginga added.

The World Bank reports that SMEs are vital to global economic development, accounting for about 90 per cent of businesses and more than 50 per cent of employment worldwide.

In Kenya, SMEs contribute about 30 per cent to the GDP and employ over 15 million people, as noted by the Kenya Bankers Association’s 2021 Micro, Small, and Medium Enterprises Survey Report.

This initiative by Absa Bank Kenya and Old Mutual Kenya marks a significant step towards supporting the growth and sustainability of SMEs, reinforcing their role as a key driver of the Kenyan economy.