Jubilee compensates sorghum farmers in Kibwezi

Jubilee Insurance has compensated sorghum farmers who suffered crop failure from drought in Kibwezi. The farmers who had taken up J-Mavuno - Jubilee's sorghum index-based weather insurance cover - are the first claimants since the launch of the product early this year.

Six farmers from the region received their payments from Jubilee. The sorghum cover is the first of its kind targeting small-scale farmers in arid and semi-arid areas — areas prone to perennial food shortages.

If the rainfall received is less than the minimum required, a farmer is compensated for every drop in millimetres, thus ensuring them a guaranteed return on their sorghum crop. "Jubilee is committed to developing micro insurance products, including the J-Mavuno which targets to insure farmers across different levels," said Lydia Kibaara, Jubilee Kenya General Manager, Short Term Business.

The amount of rainfall received, in the case of Kibwezi is recorded using Automated Weather Stations installed at Dwa Plantation with financial support from the Financial Sector Deepening. Ms Kibaara said the area received far less than required rainfall to support sorghum during the contract area. "This cover enables farmers in sorghum growing areas to streamline their income and develop a sustainable mechanism for ensuring they are food-secure," she said.