The government has launched a plan to embed climate risk insurance into the National Fertiliser Subsidy Programme to shield farmers from climate shocks while increasing food production.

The Ministry of Agriculture and Livestock Development reported on Monday, July 21, the plan will start with about 250,000 smallholder farmers who will each receive automatic climate insurance cover worth Sh7,000 alongside subsidised fertiliser.

Agriculture Principal Secretary Paul Ronoh noted the move marks a change in how the government delivers subsidies, shifting from handing out inputs alone to building resilience for farmers.

“We are changing how we protect our farmers by including insurance in essential services like fertiliser distribution,” Ronoh explained.

The ministry observed fewer than five per cent of farmers in Kenya have formal insurance despite the agriculture sector accounting for 33 per cent of the country’s gross domestic product and employing more than 70 per cent of rural households.

The insurance will cover risks linked to climate, such as droughts and flooding, with payouts made through mobile wallets or in farm inputs if yields fall below agreed levels.

The programme will be rolled out in Makueni, Machakos, Kisii, Migori, Meru, Nyeri, Trans Nzoia, Kakamega, Kericho, Nakuru and Uasin Gishu before scaling up nationally next year.

Bayer Foundation Head of Public Affairs, Science and Sustainability for Africa Mildred Nadah Pita stated the plan will protect farmers from losses they cannot predict.

“This partnership is about making resilience a right for farmers, not a privilege for a few,” Pita observed.

The government is working with Pula Advisors, Bayer Foundation, Lemonade Foundation, SOMPO Digital Lab and Etherisc to implement the insurance programme.

Lemonade Foundation Strategy and Operations Lead Dimitri Fishler argued the plan uses artificial intelligence and satellite data to monitor weather and crop health to trigger fast payouts.

“By using digital tools and linking them to mobile wallets, we will ensure farmers are paid quickly when it matters,” Fishler added.

Pula Chief Executive Thomas Njeru explained the programme will change how Kenya delivers fertiliser subsidies by adding climate protection.

“Together, we are making sure our farmers get dignity and stability as they feed the nation,” Njeru noted.

The ministry reported the insurance plan aims to build trust in the fertiliser subsidy programme while pushing smallholder farmers to adopt practices that will help them adapt to a changing climate.