Ksh 25.5 million on tap for 7,025 smallholder assorted crop farmers in 21 counties in Kenya. This is under the Kenya Agricultural Insurance Program (KAIP) where the government of Kenya through its State Department of Crop Development and a consortium of six insurance companies headed by APA insurance.

Climate change is a hard-hitting reality that has thrown Kenya smallholder farmers into anxiety mode. The weather patterns have drastically changed from the normal where there use to be a regular and predictable downpour. Planting periods have shifted and farmers are no longer sure of productivity. This jeopardises our food security and national planning.

To curb the challenges of production uncertainties, the Kenyan government through its state department of crop development partnered with six insurance companies led by APA Insurance to caution smallholder farmers against climate change related risk leading to reduced yields.

The consortium is composed of six insurance companies; APA, Jubilee, CIC, UAP, Kenya orient and AMACO. This program started in the year 2016 with three counties (Bungoma, Nakuru and Embu) under the support of the World Bank. The program has grown to 21 counties as summarised in the 2018 business below.

Government of Kenya Partners with Insurers to Make Record Crop Insurance Pay-outs

25.5 million will be paid to 7,025 smallholder farmers beneficiaries across the 8 of 21 counties in Kenya.

APA Insurance CEO, Vinod Bharatan lauded the government for supporting the program by providing subsidies for the premiums, adding that this will contribute towards safeguarding farmers’ livelihoods that are often threatened by adverse climatic conditions.

“Smallholder farmers are the backbone of our agricultural production. However, in recent years, they have had to bear huge risk that comes with effects of climate change. The weather is no longer predictable and natural disaster have become more frequent, leading to huge crop losses. We aim to address this challenge to livelihoods, our bread basket and our economy,” Mr Bharatan said.

The just concluded 2019 enrolment into the program has expanded to 27 counties with a focus of reaching the 33 active crop arable counties in 2020. The program is looking at insuring 1 million farmers by 2020.

The Area Yield Index Insurance covers farmers based on the condition of harvest history of the unit area of insurance where the farm falls.