The government is piloting a project that integrates climate-smart insurance into the subsidized fertilizer program, aiming to support 250,000 smallholder crop farmers across eleven counties before a nationwide rollout in 2026.
- •The project in partnership with Pula, Bayer Foundation, Lemonade Foundation, SOMPO Digital Lab, and Etherisc aims to embed insurance into subsidized fertilizer distribution, supporting the government’s broader vision of enabling farmers to adopt climate-smart practices and data-driven tools to improve productivity.
- •The Pilot phase rollout will cover Makueni, Machakos, Kisii, Migori, Meru, Nyeri, Trans-Nzoia, Kakamega, Kericho, Nakuru, and Uasin Gishu counties, ahead of a national scale-up next year.
- •Farmers are automatically enrolled in the insurance scheme when receiving their subsidized fertilizer.
“Agricultural insurance is a step in the right direction, especially now that climate-related risks are not a distant threat to our livelihoods. This partnership is critical as it will not only protect farmers from risks such as drought and floods but will also promote a sustainable safety net for our farmers, mainly those in Arid and Semi-Arid areas,” said National Cereals and Produce Board (NCPB) MD Samuel Karogo.
For this season, each farmer registered on the Kenya Integrated Agriculture Management Information System (KIAMIS), in the beneficiary counties, will be offered insurance coverage for Ksh. 7,000, which is equivalent to the investment needed for two bags of subsidised fertilizer which they procure from the government. For subsequent seasons, the coverage amount and number of beneficiary counties will be increased.
The 2025 rollout leverages Pula’s proprietary tools-the Pula Insurance Engine (PIE) and Mavuno, an AI-powered farmer registration platform-alongside weather, satellite, and on-ground data to monitor rainfall, pests, and diseases. If yields fall below a set threshold, insured farmers receive timely payouts in cash or inputs.
Agriculture contributes 33% to Kenya’s GDP and employs over 70% of the rural population. Yet, fewer than 5% of farmers have access to formal insurance. By embedding risk protection into essential government services, this initiative aims to stabilize rural incomes, unlock financing, and foster long-term food security.