Farmers receive Kshs. 117.5 million compensation for crop losses

The Government, in its efforts aimed at protecting livelihoods has identified agriculture Insurance as part of a broader risk management framework and as a key strategy to de-risk agriculture. According to Agriculture CS Peter Munya, insurance is expected to contribute towards a long-term transformation of farming from subsistence to commercial agriculture. The CS adds that farmers’ compensations during a failed season is critical for stabilizing their incomes and building resilience thus leading to overall agricultural growth and development.

“In recognition of this, the Ministry, with support from partners in the insurance sector, developed the crops and livestock insurance programmes, to supporting farmers’ access agriculture insurance. The comprehensive Crop Insurance Program (CIP) covers various crop enterprises, starting with the main food crops, namely maize, pulses and Irish Potatoes. Under this programme, the Government of Kenya, through the State Department of Crops Development, funds 50 % of the insurance premiums for farmers with farm sizes ranging from ½ (half) an acre to 20 (twenty) acres. The farmers who purchase insurance are expected to pay 50% of the remaining premium costs. The scheme is also eligible for farmers who wish to insure above the 20 acres. However, they are expected to pay the full premium cost with no government subsidy,” says Munya. The insurance underwriter pool is led by Insurance Regulation Authority and APA Insurance.

The CS was speaking in Nairobi when he officially launched a payout compensation of Kshs. 117.5 million to farmers who incurred crop loses in 2019 in 28 counties. The program so far has been rolled out to 33 targeted food producing counties covering maize, beans, Irish potatoes, sorghum, cowpeas and green grams. The CS also said the program is progressively rolling out to cover other crops including wheat, rice, cash and horticultural crops.

“During the 2019 long rains season, 409,000 farmers in 27 Counties were insured at total risk value of Kenya Shillings 2 billion. As per requirement, the crop loss assessment was done through crop cutting at the end of the seasons. The results of the loss assessment indicate that out of the 409,000 farmers insured 25,228 farmers experienced crop loses and have claims amounting to Kenya Shillings One Hundred Seventeen Million, Four Hundred Eighty-Three Thousand Three Hundred Fifteen (Kshs. 117,483,315).   This brings to a total of 37,500 farmers who have benefited from crop loss compensation to the tune of Kshs. 217 Million since the crop insurance program began,” says the CS.

Munya has urged farmers to take advantage of this crop insurance program that is highly subsidized by the government in order to cover themselves from the ever increasing risks. 

Here is the list of the counties