Kenya farmers benefit from insurance payouts

Sep 22, 2010

Farmers in Kenya's Embu District have been among the first in the country to receive insurance payouts under the Kilimo Salama scheme.

Organised by the Syngenta Foundation for Sustainable Agriculture, Safaricom and UAP Insurance, the initiative benefits agriculture businesses that have had their crops affected by adverse weather conditions, Business Daily reports. A total of 135 farmers in Siakago received the money, after readings from weather stations confirmed the area saw below-average rainfall during the growing season.

Farmers have to pay a five per cent premium on the seeds and fertiliser they buy in order to be covered by the policy and James Wanbugu of UAP advised them to continue the practice, noting the upcoming short rain season is likely to bring poor weather. In addition to crop insurance, the firm also provides a number of financial products to Kenyans, including credit and investment services, life assurance, health insurance and cover for items such as vehicles or livestock.