by Anita Nkirote/anita.nkirote@hortinews.co.ke
Kenya Launches Innovative Fertilizer Subsidy Program with Climate-Smart Insurance
The Ministry of Agriculture and Livestock Development, in partnership with Pula, Bayer Foundation, Lemonade Foundation, SOMPO Digital Lab, and Etherise, has launched a climate risk resilience initiative. This program integrates climate-smart insurance into Kenya’s National Fertilizer Subsidy Program, marking a major milestone in building resilience among smallholder farmers.
The initiative, a first of its kind in Kenya and the broader region, will be piloted across 11 counties, including Makueni, Machakos, Kisi, Migori, Meru, Nyeri, Trans-Nzoia, Kakamega, Kericho, Nakuru, and Uasin Gishu. The pilot phase rollout will cover approximately 250,000 crop farmers before expanding nationwide. The program is set to reach approximately 2,000 crop farmers in these counties, with plans to scale up next year.
Farmers are automatically enrolled in the insurance scheme upon receiving subsidized fertilizer from the government. This essential step ensures the success of this public-private partnership initiative, designed to de-risk smallholder farmers from climate-related threats. For subsequent seasons, the coverage amount and number of beneficiary counties will increase, offering greater protection.
Mildred Nadah Pita, Head of Public Affairs, Science & Sustainability, Africa at Bayer, emphasized, “This partnership is about creating meaningful access to resilience. At Bayer Foundation, we believe that 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.”
Leveraging digital infrastructure and integrating with mobile wallets, the program ensures farmers are paid transparently and rapidly when it matters most. Dimitri Fishler, Strategy and Operations Lead at the Lemonade Foundation, highlighted, “The future of climate protection in agriculture lies in scalable, digital-first solutions.”
The 2025 rollout builds on years of successful pilot programs, which reached thousands of farmers. It leverages Pula’s proprietary tools—the Pula Insurance Engine (PIE) and Mavuno, an AI-powered farmer registration platform—alongside weather, satellite, and on-ground data to monitor rainfall, pests, and diseases. If yields fall below a set threshold, insured farmers receive timely payouts in cash or inputs.
Thomas Njeru, Co-founder and CEO of Pula Advisors, stated, “Together, we are transforming how agricultural subsidies work. We deliver dignity, resilience, and predictability to farmers who feed our nation.” Agriculture contributes 33% to Kenya’s GDP and employs over 70% of the rural population. Yet, fewer than 5% of farmers have access to formal insurance. By embedding risk protection into essential government services, this initiative aims to stabilize rural incomes, unlock financing, and foster long-term food security.
The program underscores the Ministry of Agriculture’s commitment to shielding farmers from the mounting impacts of climate change while building a sustainable and resilient agricultural economy. Samuel Karogo, MD of the National Cereals and Produce Board (NCPB), added, “Agricultural insurance is a step in the right direction, especially now that climate-related risks are not a distant threat to our livelihoods. This partnership is critical as it will not only protect our farmers, mainly those in Arid and Semi-Arid areas, but also promote a sustainable safety net for our farmers.”
For this season, each farmer registered on the Kenya Integrated Agriculture Management Information System (KIAMIS) in the beneficiary counties will be offered insurance coverage for Ksh. 7,000, equivalent to the investment needed for two acres.
In future seasons, the program will expand its coverage and deploy innovative public-private financing mechanisms to reduce vulnerability and promote sustained investment in agricultural inputs. The partnership aims to embed insurance into subsidized fertilizer distribution, supporting the government’s broader vision of enabling farmers to adopt climate-smart practices and data-driven tools to improve productivity.
Stay tuned to www.hortinews.co.ke for updates on how this initiative is revolutionizing farmer resilience and sustainable agriculture in Kenya.