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The Nairobian

Farmers receive Sh117m crop insurance compensation

News

By Awal Mohammed | Aug 27, 2020

Farmers in 28 counties will receive Sh117 million payout from insurance firms due to crop loss last year.

Under the crop yield insurance programme, which is partly supported by the State, farmers who had insured their crops will receive compensation after assessment by the insurer.

Speaking during the official payout in Nairobi yesterday, Agriculture Cabinet Secretary Peter Munya (pictured above) said the compensation shows the government's commitment to safeguard livelihoods and promote food security.

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“This payout is to our farmers who would have otherwise lost everything to the vagaries of weather. We are enhancing farming by ensuring it is not a trial and error venture - thus making farming a preferable investment,” Munya said.

“Our role as a ministry is to always look out for the best way we can add value to our farmers, and through this partnership with private insurance firms, farmers are now assured of their livelihood including pastoralist against famine and drought.”

The programme that started in 2016 was piloted in Nakuru, Embu and Bungoma counties. It now covers 33 devolved units.

Under the partnership with local insurers led by APA Insurance, the government pays 50 per cent of the premiums for 20,000 acres and below while the other half is paid by the farmer. Those with over 20,000 acres pay full amount.

For compensation, the farming zones are divided into an area yield. If average production in one of the units falls below a threshold, then all insured farmers receive a payout.

Farmers growing maize, beans, green grams and wheat are insured. Interestingly, farmers who lost their crops to the locust infestation wouldn’t benefit with Munya saying that it was not covered.