Navigating Critical Challenges in Aviation: Insights from Our Industry Forum

As insurance brokers, a big part of our role is to understand “risk.” By understanding risk, we are in a better position to advise our clients on how to protect their going concerns. Some risks are visible and immediate, such as a fire at a commercial property or an accident in the workplace. Others are broader in scope and out of control, macro-level risks like pandemics, geopolitical instability, or supply chain disruptions. At times, risks can be systemic, evolving from the business environment and regulatory or legal framework in which businesses operate.

One of the privileges of our role as brokers is the opportunity to engage directly with business owners and managers. I often ask: What keeps you up at night? What are the biggest challenges facing your business? Sometimes, insurance provides a clear solution to transfer these risks off the balance sheet. In other instances, risk transfer through insurance may not be available. In those scenarios, proactive steps can still be taken to manage and mitigate exposures.

In recent months, our discussions with clients in the aviation sector highlighted a few critical challenges that, if left unaddressed, could impact the long-term sustainability of the local aviation industry. Recognising that the first step to managing risk is identifying it, JWS partnered with Spencer West LLP, an international law firm with a dedicated Aviation desk based here in Nairobi, to host a closed-door forum focused on some of the sector’s challenges.

The forum brought together a range of stakeholders including aviation operators, financiers, the Kenya Civil Aviation Authority (KCAA) as well as legal advisors and insurers. Held in a panel discussion format, the event focused on three key areas currently posing significant challenges to domestic operators around Aviation Financing, Leasing Contracts, and Insurance.

Alex Avedi, CEO of Safarilink, and Mohammed Harunany, Managing Director of Mombasa Air Safaris—both highly experienced aviation professionals—shared anecdotal experiences on the difficulties they have faced raising finance for their operations. The discussion made clear that access to local financing remains limited, something that the financiers in the room committed to addressing in the near term.

Hannee Khan, Founding Partner of Spencer West, and our co-host on the day, noted how foreign lessors are increasingly reluctant to fund or lease aircraft registered in Kenya due to concerns around asset recovery in the event of default. This issue was further addressed by Winnie Tallam, Manager of Legal Services at KCAA, who outlined some of the government initiatives aimed at improving the regulatory framework to provide better protections for foreign aviation financiers and aircraft lessors.

In the final session Kashif Chaudhry, Executive Director of Mayfair Insurance, spoke about how capacity remains a challenge for the local underwriters when it comes to Aviation risks. He also talked about the dynamics of the current global insurance market and how recent airline losses in other parts of the world, as well as marked increases in Hull War insurance rates following the Russian invasion of Ukraine, are impacting aviation premiums even here in East Africa in 2025.

Insurance has long been known as a “people business,” and this event was a great demonstration of that. By bringing together players in the aviation sector to openly share concerns about risks to their business, we believe a positive step was taken toward mitigating some of the systemic risk. What stood out across the sessions is the critical importance of collaboration—between operators, regulators, financiers, insurers, and legal advisors. Solutions will come from working together.

This forum marks the beginning of a series of industry-specific, closed-door events hosted by JWS. The next session—focusing on Risks and Challenges in the Construction Sector—is scheduled for Quarter Three. Further details will be shared soon.

If you would like further information about JW Seagon’s Aviation Insurance solutions, please don’t hesitate to reach out to David Nolan at david.nolan@jwseagon.com