UASIN GISHU, Kenya – In Kenya, crop production is gradually shifting from a struggle for survival to a pathway for economic opportunity. For many years, farmers have faced unpredictable weather, fragile soils, limited drying options, and uncertainty about where their harvest would be sold.
These constraints often meant that even good yields failed to translate into stable incomes owing to the fact that agriculture is the backbone of Kenya’s economy, contributing over 20-30% of the GDP and employing over 40% of the total population and 70% of rural inhabitants.
Despite the importance of the agricultural sector, which is largely supported by small-scale farmers, the industry still faces significant challenges, mostly from climate change-induced droughts.
However, this appears to be something of the past following the rollout of the pioneering insurance-integrated fertiliser subsidy program to safeguard smallholder farmers in the country.
In a bold step toward climate resilience and food security, the Ministry of Agriculture and Livestock Development, alongside partners: PULA Advisors, The Bayer Foundation, Lemonade Foundation, SOMPO Digital Lab, and Etherisc, launched an initiative that integrates agricultural insurance into Kenya’s National Fertiliser Subsidy Program.
Since its inception in July 2025, the program has seen at least 250,000 farmers across 11 counties benefit from climate risk insurance embedded into the Kenya Integrated Agriculture Management Information System (KIAMIS).
These counties include Makueni, Machakos, Kisii, Migori, Meru, Nyeri, Trans-Nzoia, Kakamega, Kericho, Nakuru, and Uasin Gishu.
Why is President William Ruto keen on achieving a food-secure nation?
Apart from de-risking farmers from climate shocks like erratic rainfall, pests, and crop failure, the innovation further uses AI-powered registration, satellite data, and mobile-based payout systems.
The key objective of this initiative is to de-risk agriculture for smallholder farmers, as fewer than 5% currently have formal insurance, despite agriculture contributing 33% to Kenya’s GDP. Therefore, by integrating insurance into essential government services, the initiative is set to stabilise rural incomes and unlock investment opportunities.
The first insured fertiliser packages were distributed to farmers from Makueni County, marking a new chapter in climate-smart agriculture and rural resilience in Kenya.
Upon assuming office in September 2022, President William Ruto said that his ruling Kenya Kwanza administration was keen on looking at having a permanent, long-term solution to food production in the country. This, the head of state announced, will be focused on “transitioning toward climate-resilient, sustainable, and technology-driven agriculture to address food insecurity for Kenya’s growing population.”
Susan Musembi, a small-scale farmer from Makueni County in Kenya’s Ukambani region, stated that she made the right decision by embracing the insurance-integrated fertiliser subsidy program.
“I’m so glad because at the end of the day, I will be compensated in case everything doesn’t go as expected,” said Musembi, who owns a one-and-a-half-acre maize farm on the outskirts of Wote Town.
The impact of embedding insurance into the national fertiliser subsidy program
On his part, Peter Kiptum, another small-scale farmer from Soy in Uasin Gishu County, spoke highly of the benefits he’s seen from the program.
“Thanks to the support I have received from this insurance-integrated fertiliser subsidy program, I have been able to buy goats to herd and increase my maize production fivefold,” explained the elated farmer.
The program is already achieving tremendous results. For instance, in the 2025 planting season, two bags of fertiliser per farmer were fully insured at no extra cost.
“This is a major step forward for agricultural resilience in Kenya. Agricultural insurance helps farmers cope with unpredictable climate shocks. By embedding insurance into the national fertiliser subsidy program, we ensure it’s affordable and accessible,” explained Rose Goslinga, president and co-founder of PULA.
The initiative uses PULA’s Insurance Engine (PIE) and AI-powered registration (Mavuno) to monitor climate data (rainfall, pests). Additionally, through mobile technology, registered farmers automatically receive compensation via the mobile money transfer service M-Pesa if their crops fail due to drought or floods.
“By leveraging digital infrastructure, we ensure timely compensation that truly matters,” noted Dimitri Fishler of the Lemonade Foundation.
Why should Kenyan farmers be cautious about the devastating effects of drought?
On the other hand, field assessments and crop-cutting experiments are determining payouts, with support from local insurers like Bima.
This comes when the immediate effects of droughts are always challenging to manage: many farmers have always been on the verge of starvation and destitution as household food stocks get exhausted and livelihoods are jeopardised.
Drought can have long-term and mid-term repercussions in addition to causing agricultural losses during a single season. Because farmers frequently purchase seeds, fertiliser, and other inputs on credit with payback due at harvest time, planting itself can become a dangerous investment.
If output declines once more, farmers may find it difficult to pay back debts and be unable to buy the inputs they need for the upcoming season in an effort to turn things around.
Goslinga, CEO of PULA Advisors, the insurance-tech business that provides the policy, further said she recognised the concerns of farmers, some of whom were sceptical about the idea.
According to Goslinga, “insurance is about a promise. You can touch seeds when you purchase them. You can touch the fertiliser when you purchase it. However, after you get insurance, you are unable to access it. You are purchasing a promise on your behalf.”
Dr. Daniel Mwendah M’Mailutha, the Chief Executive Officer (CEO) of the Kenya National Farmers’ Federation (KENAFF), who welcomed the initiative, observed that farmers ought to look at themselves as entrepreneurs and never as beggars.
“What they (farmers) need is a conducive environment to access funding, inputs, storage facilities, and insurance covers, among other necessities, to help them grow,” emphasised Dr. M’Mailutha.
How does the insurance-integrated fertiliser subsidy program add value to Kenya?
Dr. M’Mailutha further reiterated that KENAFF recognises that health is wealth, and without good health, farmers cannot contribute effectively to food security and economic development.
“Farmers are the backbone of our food system. And so, we have also developed a Farmers’ Health Insurance (FHI) so that they (farmers) can access affordable health insurance to enable them to always take care of themselves. Supporting farmers means supporting their health and well-being,” he insisted.
Director General of the National Cereals and Produce Board (NCPB), Samuel Ndung’u, said the initiative adds value to the existing fertiliser subsidy scheme.
“The government currently subsidises fertiliser to Sh 2,500 per bag. This insurance is an enhanced benefit that farmers will enjoy at no extra cost this season,” he stated.
Ndung’u further outlined NCPB’s operational success, stating that the board had distributed 9.2 million bags of fertiliser during the current financial year, a record high.
“Our target is 12.9 million bags. This initiative takes us a step closer by not just delivering inputs but delivering hope and protection,” he added.
More small-scale Kenyan farmers are confident of a bumper harvest
In addition to the PULA Insurance Engine (PIE) and Mavuno, an AI-based farmer registration platform, these tools, combined with satellite, rainfall, and field data, allow accurate monitoring of crop performance and enable timely payouts in cases of loss.
“Together, we are transforming how agricultural subsidies work; this programme delivers dignity, resilience, and predictability to farmers who feed our nation,” said Pula CEO Thomas Njeru.
According to the former Kenyan country director of the International Fund for Agricultural Development (IFAD), Francesco Rispoli, farmers can avoid the vicious cycle of debt and low output by using crop insurance to mitigate the worst of these consequences.
“Insurance can be used to ease the transition from recurrent food insecurity to market-oriented agriculture and help strengthen their livelihoods by protecting farmers against risks beyond their control,” said Rispoli, who currently serves in Zimbabwe.
Kayoni Ladema, another small-scale farmer from Nakuru County, said, “We planted earlier, and as you can see the progress, the crops are coming up so well, and we thank God for this. We have hope because of this insurance program. We are now confident that we shall have a highly productive harvest.”
Ruth Sifuna, a small-scale farmer from Trans Nzoia County who has specialised in maize and bean cultivation, disclosed that the new farming investments are changing the story for Kenyan farmers.
“This insurance-integrated fertiliser subsidy program is a game changer because it is now helping us farmers plant on time, increase yields, and earn more from our hard work while keeping food prices stable for households,” explained Sifuna.
How is the Lemonade Foundation supporting farmers in ASAL regions?
Bayer Foundation’s Head of Public Affairs, Mildred Nadah Pita, noted a $10 million (Sh 1.2 billion) commitment over five years to support 10 million farmers globally.
“This partnership is about creating meaningful access to resilience; insurance shouldn’t be a privilege for a few but a tool that empowers underserved farmers, especially women and youth,” said Mildred.
The Lemonade Foundation, represented by Dimitri Fisler, has also reaffirmed its commitment to leveraging insurtech for social good.
“We are also on board to meet the needs of small-scale farmers in Kenya’s arid and semi-arid areas and to protect their rainfed crops against drought, floods, pests and diseases,” explained Dimitri.
Benson Kimotho, a small-scale horticulture farmer in Meru County who has also benefited from the initiative, exuded confidence that he would reap big at the end of the season.
“We have received the government’s subsidised fertiliser. This is the third day that I am on my farm tending to my crops. I am also sure that with this program I am going to have a bumper harvest at the end of the season,” Tondol explained.
Why are public-private partnerships enabling climate adaptation?
Tondol observed that if Kenya has sufficient subsidised fertiliser embedded in the climate risk insurance program, then it will result in a food-secure nation.
The Ministry of Agriculture says the program demonstrates the power of public-private partnerships in enabling climate adaptation at scale and fostering a resilient agricultural economy.
As the program scales up nationally, the Cabinet Secretary, Ministry of Agriculture and Livestock Development, Mutahi Kagwe, said it will expand coverage and unlock new financing pathways for farmers, ushering in a new era of inclusive, digital-first climate adaptation in Kenya’s agriculture sector.
“The move reinforces the government’s commitment to transforming input support into a tool for resilience, dignity, and economic empowerment for the farmers who feed the nation,” explained CS Kagwe.
The initiative aims to scale up, increasing coverage amounts and including more counties in subsequent seasons.
