The Ministry of Agriculture and Livestock Development has launched a climate risk resilience initiative that integrates climate-smart insurance into Kenya’s National Fertilizer Subsidy Program. The initiative is in partnership with Pula, Bayer Foundation, Lemonade Foundation, SOMPO Digital Lab, and Etherisc.
The initiative will be piloted across 11 counties and is expected to reach approximately 250,000 farmers before expanding nationwide. The Pilot phase rollout will cover Makueni, Machakos, Kisii, Migori, Meru, Nyeri, Trans-Nzoia, Kakamega, Kericho, Nakuru, and Uasin Gishu counties, ahead of a national scale-up next year.
The program will expand its coverage and deploy 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 vision of enabling farmers to adopt climate-smart practices and data-driven tools to improve productivity.
“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 farmers from risks such as drought and floods but will also promote a sustainable safety net for our farmers, mainly those in Arid and Semi-Arid areas,” said National Cereals and Produce Board (NCPB) MD Samuel Karogo.
The program will improve uptake and confidence in the fertilizer subsidy program by offering value-added services. 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. This is equivalent to the investment needed for two bags of subsidised fertilizer which they procure from the government. For subsequent seasons, the coverage amount and number of beneficiary counties will be increased.
Farmers are automatically enrolled in the insurance scheme when receiving their subsidized fertilizer. The initiative is designed to de-risk smallholder farmers from climate-related threats, marking a major shift toward inclusive insurance at scale.
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.
“Together, we are transforming how agricultural subsidies work,” said Thomas Njeru, Co-founder and CEO of Pula Advisors. “We deliver dignity, resilience, and predictability to farmers who feed our nation.”