Kenya Rolls Out Fertiliser Insurance to Shield Farmers from Climate Risks

In Summary

• Kenya launches first fertiliser insurance scheme for smallholder farmers.
• Program targets 250,000 farmers in 11 counties, with KSh 7,000 coverage per farmer.
• Initiative integrates insurance into National Fertiliser Subsidy Programme.
• Aimed at mitigating climate risks like droughts, floods, and pests.
• Digital tools, including KIAMIS, ensure transparency and efficient payouts.
• Plans to expand coverage and private sector financing by 2026.

Kenya has launched a pioneering fertiliser insurance scheme to protect smallholder farmers from climate-related risks, marking a significant step toward agricultural resilience. The Ministry of Agriculture and Livestock Development, in partnership with Pula Advisors, Bayer Foundation, Lemonade Foundation, SOMPO Digital Lab, and Etherisc, rolled out the program on July 21, 2025, targeting 250,000 farmers across 11 counties: Makueni, Machakos, Kisii, Migori, Meru, Nyeri, Trans Nzoia, Kakamega, Kericho, Nakuru, and Uasin Gishu.

The initiative, embedded in the National Fertiliser Subsidy Programme, automatically enrolls farmers registered in the Kenya Integrated Agriculture Management Information System (KIAMIS) for insurance worth KSh 7,000, equivalent to two bags of subsidised fertiliser. Coverage protects against losses from droughts, floods, or pests, with Sensitization workshop in Nairobi, Tom Dienya, Director of Agricultural Data and Statistics, speaking for PS Dr. Paul Kipronoh Ronoh, highlighted the role of digital tools. “We now have a complete digital database of registered farmers, enabling transparency and ensuring services like financing and insurance reach the right beneficiaries,” he said.

Thomas Njeru, CEO of Pula Advisors, emphasized the program’s transformative impact. “This initiative delivers dignity, resilience, and predictability to farmers who feed our nation,” he said. The scheme uses Pula’s Insurance Engine and Mavuno AI platform, leveraging weather, satellite, and on-ground data to monitor risks and trigger timely payouts in cash or inputs if yields fall below set thresholds.

Agriculture, contributing 33% to Kenya’s GDP and employing over 70% of rural households, is highly vulnerable to climate shocks, yet fewer than 5% of farmers have formal insurance. “This partnership makes resilience a right, not a privilege, especially for women and youth,” said Mildred Nadah Pita of Bayer Foundation. The program aims to boost farmer confidence, stabilize incomes, and enhance food security.