Govt Launches Agricultural Insurance to Protect Farmers Against Climate-Related Threats

An insurance police form
Spectacles placed on top of an insurance claiming form.
Photo
IRA

The Ministry of Agriculture is set to launch an Integrated Agricultural Insurance Programme to protect smallholder farmers across the country against climate-related risks.

In a statement on Monday July 21, the ministry announced that the pilot phase of the 'climate-smart insurance' programme, a public-private partnership, would be launched for farmers in Makueni, Machakos, Nyeri, Meru, Nakuru, Kericho, Uasin Gishu, Kisii, Migori, Trans Nzoia and Kakamega before being expanded nationwide.

In Kenya, according to the ministry, less than 5 percent of farmers have access to formal insurance, despite them playing a key role in ensuring the country's economic fitness, making them more susceptible to emerging climate-related threats.

In addition to shielding farmers against climate-related threats, the programme also aims to ensure that farmers access critical government services, which will in turn foster long-term food security in the country.

Mutahi Kagwe Agriculture
Agriculture Cabinet Secretary Mutahi Kagwe addressing the Council of Governors (COG) in Mombasa on May 15, 2025.
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Ministry of Agriculture

According to the Ministry, the programme will offer insurance coverage to 250,000 farmers registered on the Kenya Integrated Agricultural Management Information System (KIAMIS), at a cost of Ksh7,000 per farmer. This amount will increase in subsequent seasons.

"In future seasons, the programme will expand its coverage and deploy innovative public-private financing mechanisms to reduce vulnerability and promote sustained investment in agricultural inputs," part of the statement read.

"The partnership 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," it added.

Fertiliser Subsidy Programme

According to the Ministry, the programme, which will be embedded in the subsidized fertilizer distribution, aims to improve the uptake and confidence in the country's fertilizer subsidy programme. 

After expanding the programme, the ministry aims to deploy public-private financing strategies that will also promote investment in agricultural inputs.

"Farmers are automatically enrolled in the insurance scheme when receiving their subsidized fertilizer, an essential step in the success of this public-private partnership initiative. The initiative is designed to de-risk smallholder farmers from climate-related threats, marking a major shift toward inclusive insurance at scale," the ministry stated.  

The ministry has further expressed its commitment to engineering more public-private partnerships to drive food security, de-risk rural investments, and enable climate adaptation at scale. 

"The project underlines the Ministry of Agriculture’s commitment to shielding farmers from the mounting impacts of climate change, while building a sustainable and resilient agricultural economy," the statement read. 

Bags of fertilizer in a store in Kenya.
Bags of fertilizer in a store in Kenya.
Photo
Capital FM