Nairobi, Jan. 30 -- Manufacturers have cried foul over a spike in insurance premiums, warning that some firms will forego coverage due to the hard economic times they're facing.

Increased insurance premiums have been a major factor affecting manufacturers who seek cover against fire risks, machinery breakdown and industrial risks.

"The adjustment in premiums has come at a time when the sector is grappling with economic recession, coupled with inflation arising from a range of national and global dynamics," said Bharat Shah, chairperson tax and trade committee at the Kenya Association of Manufacturers.

"The affordability issue created by this adjustment will have a negative impact on the economy in instances where some entities will for...