NAIROBI, Keya – The Ministry of Agriculture and Livestock Development has rolled out a groundbreaking climate resilience initiative that will see smallholder farmers automatically insured against climate-related losses through Kenya’s National Fertilizer Subsidy Program.
The initiative—launched in partnership with Pula Advisors, Bayer Foundation, Lemonade Foundation, SOMPO Digital Lab, and Etherisc—is the first of its kind in Kenya and across Africa.
It seeks to protect farmers from erratic weather patterns, pests, and other climate threats that have increasingly affected agricultural productivity.
“This partnership is about creating meaningful access to resilience,” said Mildred Nadah Pita, Head of Public Affairs, Science & Sustainability, Africa at Bayer. “Insurance shouldn’t be a privilege for a few, but a tool that empowers underserved farmers—especially women and youth—to thrive in the face of climate change.”
Automatic Insurance Coverage for Subsidised Fertilizer
The scheme is being piloted in 11 counties: Makueni, Machakos, Kisii, Migori, Meru, Nyeri, Trans-Nzoia, Kakamega, Kericho, Nakuru, and Uasin Gishu.
It targets 250,000 farmers in the first phase, with plans to expand nationwide in 2026.
Farmers registered under the Kenya Integrated Agriculture Management Information System (KIAMIS) will automatically be enrolled in the insurance plan when they collect government-subsidized fertilizer.
Each participant will receive insurance coverage worth Ksh7,000—the equivalent value of two bags of fertiliser—helping cushion them against potential harvest losses.
A Shift in Government Subsidy Strategy
“This initiative is designed to de-risk smallholder farmers from climate-related threats,” said Thomas Njeru, Co-founder and CEO of Pula.
“Together, we are transforming how agricultural subsidies work—delivering dignity, resilience, and predictability to farmers who feed our nation.”
Agriculture remains the backbone of Kenya’s economy, contributing about 33% of the GDP and employing more than 70% of the rural population.
Yet, fewer than 5% of Kenyan farmers currently have formal insurance coverage.
Digital Tools Powering the Initiative
The climate insurance will be delivered through Pula’s cutting-edge digital platforms, including the Pula Insurance Engine and Mavuno, an AI-powered registration system.
These tools harness satellite imagery, on-ground data, and weather monitoring to assess rainfall patterns, pest outbreaks, and yield risks.
Farmers will receive timely compensation in either cash or inputs via mobile money platforms if yields fall below the guaranteed threshold.
“The future of climate protection in agriculture lies in scalable, digital-first solutions,” said Dimitri Fishler, Strategy and Operations Lead at the Lemonade Foundation. “By leveraging digital infrastructure and integrating with mobile wallets, we ensure that farmers are paid transparently and rapidly—when it matters most.”
Public-Private Model for Climate Resilience
The Ministry says the project underscores the power of public-private partnerships in tackling the climate crisis while strengthening national food security.
“This is more than an insurance program. It’s a strategic step towards building a resilient agricultural economy,” the Ministry said in a statement.
As climate change continues to pose significant risks to Kenya’s food systems, the integration of insurance into government subsidy programs may prove a game-changer in supporting vulnerable rural communities.
