Farmers in Kenya receive Ksh 12 million for the first time as crop insurance for failed crops during the 2021 season.
APA insurance on behalf of Kenya Agriculture Insurance Group (KAIG) and in partnership with Apollo Agriculture and Pula, organized this insurance payout to farmers in Nandi for losses incurred due to climate change.
The company leads the KAIG, which comprises seven top insurers – UAP, CIC, Amaco, Jubilee, Kenya Orient, and Geminia, paid the compensation to over 5000 farmers.
APA Insurance is the lead insurer, Apollo Agriculture is the client, and Pula is the service provider that handled the risk assessment to determine the share for the smallholder farmers.
The CEO of The Apollo Group, Ashok Shah, stated in his speech that agriculture contributes to the economy and 75 percent of countrymen in Kenya rely on agriculture for their livelihoods. “The government has identified agriculture insurance as part of the broader risk management program and a key strategy to de-risk agriculture”, he said.
“We are supporting the Government of Kenya agenda on food security through the creation of an enabling environment and ensuring sustainable natural resources management. Agriculture finance and insurance are strategically important for achieving the mission of eradicating poverty and ensuring shared prosperity.”
He added that crop failure, climate change, pests, and diseases usually weighed down on farmers, but thanks to the private sector that is doing their best to make sure farmers get their due income irrespective of how climate gets to affect the yield of crops and how other factors contribute to crop losses.
Crop insurance aims to contribute towards a long-term transformation of farming from subsistence to commercial agriculture.
It is important that farmers receive compensation during the failed seasons. Compensating farmers stabilize their income and encourage them, thereby leading to overall agricultural growth and development.