Smallholder farmers in Kenya are set to benefit from a creative initiative that combines subsidized fertilizer with climate insurance, which is first for the country and the region.
The program was launched by the Ministry of Agriculture and Livestock Development. It aims to shield farmers from climate shocks like drought and floods while helping them maintain productivity.
The initiative brings together several global partners, including Pula Advisors, Bayer Foundation, Lemonade Foundation, SOMPO Digital Lab, and Etherisc.
This program is supposed to run in 11 counties among them Makueni, Machakos, Kisii, Migori, Meru, Nyeri, Trans-Nzoia, Kakamega, Kericho, Nakuru, and Uasin Gishu with plans to scale up nationally next year.
It’s going to reach around 250,000 farmers in its initial rollout.
Each farmer registered through the government’s Kenya Integrated Agriculture Management Information System (KIAMIS) will automatically receive insurance coverage worth Ksh 7,000, roughly the cost of two bags of government-subsidized fertilizer.
The insurance kicks in if a farmer’s yields drop significantly due to adverse weather or other threats.
“This isn’t just about distributing fertilizer, we are changing how farmers experience government support, turning it into something that offers real protection and peace of mind,” said Thomas Njeru, CEO of Pula Advisors.For farmers, the insurance comes at no extra cost. They’re enrolled automatically when they collect their fertilizer.
If their crops fail due to erratic rainfall or disease, they’ll receive compensation either in cash or inputs quickly and efficiently.
Mildred Nadah Pita of Bayer Foundation called it a “step toward resilience” for farmers who are often hit hardest by climate change.
“Insurance shouldn’t be a luxury,” she said. “It should be something that helps all farmers, especially women and young people, to keep going even in tough seasons.”The system relies on technology and data from satellite images to local weather reports and on-ground observations to track what’s happening on the farms.
It’s designed to make sure payouts are fast, fair, and transparent.
Dimitri Fishler from Lemonade Foundation explained that linking insurance to mobile money wallets helps get funds into farmers’ hands when they need it most.
“This is about speed and trust,” he said.
The program is part of a wider push by the government to make agriculture more resilient and productive.
Agriculture makes up about a third of Kenya’s economy and supports millions of households, but very few farmers less than 5% have any form of formal insurance.
“This partnership is showing how things become easy when government and the private sector come and work together,” said an official from the ministry.
