Launch of Kenya’s First Fertiliser Insurance Scheme: Building Resilience for Smallholder Farmers

Kenya has embarked on a pioneering journey to protect its smallholder farmers from the devastating effects of climate risks through the launch of the first-ever fertiliser insurance program integrated into the National Fertiliser Subsidy program.

Partners and Stakeholders: Collaborative Framework for Success

The success of this ambitious fertiliser insurance scheme hinges on the strong partnership between government agencies and private sector organizations with diverse expertise:

• Ministry of Agriculture and Livestock Development: Driving policy, regulation, and coordination of the program.
• Pula Advisors: Providing insurance design, data analytics, and payout mechanisms.
• Bayer Foundation: Supporting resilience measures and advocating for inclusive access.
• Lemonade Foundation: Offering innovators’ insights into insurance design.
• SOMPO Digital Lab: Contributing digital insurance platforms and risk monitoring.
• Etherisc: Blockchain technology for efficient claims processing.

“This is not a policy experiment but an important shift in agricultural support strategy — embedding resilience into every step of the process.”

Key Features of the Scheme: Pioneering Insurance Integrated with Fertiliser Subsidies

This fertiliser insurance scheme is the first of its kind in Kenya with several standout features:

• Automatic Enrollment: Farmers registered under KIAMIS automatically receive coverage
• KES 7,000 Coverage: Equivalent to two bags of subsidised fertiliser
• Comprehensive Protection: Covers droughts, floods, pests and climate-related risks
• 11-County Pilot: Launching in high-production counties including Makueni, Trans Nzoia and Uasin Gishu
• Mobile Payments: Direct compensation to farmers’ mobile wallets

Eligibility and Registration: Leveraging Digital Data to Reach Farmers

A key enabler of this scheme’s efficiency is the use of digital farmer registration and data systems:

• Mandatory registration on Kenya Integrated Agriculture Management Information System (KIAMIS)
• Digital tracking of farmer demographics, location, and subsidy allocations
• Real-time monitoring through satellite imagery and weather sensors
• Paperless claims processing and automatic payout triggers

Insurance Benefits: Tangible Protection and Financial Stability for Farmers

The fertiliser insurance program offers numerous tangible benefits to Kenyan farmers:

• Immediate financial protection equivalent to two bags of fertiliser
• Automatic coverage without enrollment paperwork or additional costs
• Timely compensation for climate-related production losses
• Direct mobile payments ensuring rapid access to funds
• Increased confidence to invest in farm inputs and technologies

Innovation and Digital Transformation: The Heart of Modern Agricultural Insurance

This insurance initiative leverages advanced technology to transform agricultural insurance delivery:

• Satellite Monitoring: Real-time assessment of crop health and weather anomalies
• AI-Powered Platforms: Pula Insurance Engine and Mavuno Platform for automated processes
• Mobile Money Integration: Instant compensation to farmers’ mobile wallets
• Blockchain Technology: Transparent and efficient claims processing
• Predictive Analytics: Early warning systems for weather-related risks

Resilience and Sectoral Impact: Strengthening Kenya’s Agricultural Backbone

The fertiliser insurance program extends benefits beyond individual farmers to Kenya’s agricultural sector:

• Enhanced Climate Resilience: Protection against increasingly unpredictable weather patterns
• Stable Farm Incomes: Preventing financial ruin during climate emergencies
• National Food Security: Maintaining consistent food production levels
• Financial Inclusion: Introducing insurance to previously uninsured farmers
• Technology Adoption: Encouraging digital solutions across agriculture

“Agricultural insurance helps farmers cope with unpredictable climate shocks. By embedding insurance into the subsidy program, we ensure it’s affordable and accessible, delivering dignity and predictability to the farmers who feed Kenya.”

Conclusion: Transforming Kenyan Agriculture through Inclusive Fertiliser Insurance

Kenya’s launch of the first fertiliser insurance scheme integrated with the government’s subsidy program marks a transformative step in agricultural policy and climate resilience strategy. By combining affordable insurance, digital innovation, and targeted subsidy delivery, the program provides smallholder farmers with financial security against climate-related risks while encouraging greater investment in productivity-enhancing inputs.

The pilot phase across 11 counties, reaching 250,000 farmers, is setting a foundation for nationwide scale-up and innovation in public-private financing of agricultural resilience. As the program matures, it is poised to become a blueprint for how governments in Africa and other vulnerable regions can protect rural farmers, boost national food security, and embrace technology-driven solutions for sustainable agriculture.

For Kenya’s smallholder farmers, this fertiliser insurance scheme is not just a new product but a lifeline—a tool that will help transform vulnerability into opportunity and sustain livelihoods for generations to come.

Summary Table: Key Points of Kenya’s Fertiliser Insurance Scheme