Kenya’s agriculture ministry is seeking crop insurance providers to cover smallholder farmers from risks and shocks of climate change.
The expanded crop insurance program (CIP) will run in 33 out of 47 counties. In this case, the ministry will subsidize 50 percent of the premiums payable to the policy providers.
Furthermore, CIP will run during the 2019-20 and 2020-21 fiscal years. For instance, in the 2019-20 fiscal year, the government intends to spend Ksh300 million as premium payment in 27 counties.
In June this year, the government compensated Ksh100 million to 12,000 farmers from 20 counties for failed crops.
The policy covers loss of yields due to natural calamities such as poor weather, pests, and diseases for farms ranging from quarter and acre to 20 acres.
Moreover, an invitation to insurers stipulates that the policy targets corn, pulses, and potatoes.
However, farmers with over 20 acres will enjoy the subsidy for the first 20 acres but pay the full premium for the remaining acreage.
The program piloted in 2015 with 900 farmers and has since attracted 145000 farmers. Some of the insurance firms already participating are; CIC, Amaco, Jubilee, UAP Old Mutual, Kenya Orient, and APA Insurance.
The ministry hopes to enhance food security, improve earnings, and reduce the vulnerability of farmers.