The Kenyan government has unveiled a bold initiative to integrate climate risk insurance into the National Fertilizer Subsidy Programme, aiming to cushion farmers from climate shocks while boosting agricultural productivity.

The Ministry of Agriculture and Livestock Development announced on Monday, July 21, that the pilot phase will cover 250,000 smallholder farmers. Each beneficiary will receive subsidized fertilizer along with automatic climate insurance valued at Sh7,000.

Agriculture Principal Secretary Paul Ronoh said the move signals a shift in the government’s subsidy model from merely providing farm inputs to embedding resilience measures in service delivery.

“We are changing how we protect our farmers by including insurance in essential services like fertilizer distribution,” said Ronoh.

Despite agriculture contributing 33% to Kenya’s GDP and employing over 70% of rural households, fewer than 5% of farmers have access to formal insurance, according to the ministry.

The new climate insurance scheme will cover weather-related risks such as drought and flooding. Payouts will be triggered if yields fall below a certain threshold and will be disbursed either through mobile wallets or in-kind support such as additional farm inputs.

The pilot programme will roll out in 11 counties: Makueni, Machakos, Kisii, Migori, Meru, Nyeri, Trans Nzoia, Kakamega, Kericho, Nakuru, and Uasin Gishu. A national scale-up is planned for next year.

Mildred Nadah Pita, Head of Public Affairs, Science and Sustainability for Africa at Bayer Foundation, said the initiative seeks to make resilience a standard offering rather than a luxury.

“This partnership is about making resilience a right for farmers, not a privilege for a few,” she said.

The government is working with multiple partners including Pula Advisors, Bayer Foundation, Lemonade Foundation, SOMPO Digital Lab, and Etherisc to operationalize the programme.

Dimitri Fishler, Strategy and Operations Lead at Lemonade Foundation, highlighted the use of advanced digital tools such as AI and satellite data to monitor crop health and weather patterns, enabling timely payouts.

“By linking technology to mobile wallets, we ensure that farmers receive fast and transparent compensation when it matters most,” Fishler noted.

Pula Advisors CEO Thomas Njeru added that integrating insurance into input subsidies will build trust in government support systems while encouraging farmers to adopt climate-smart practices.

The Ministry says the initiative is not only about protecting farmers from unpredictable losses, but also about strengthening the long-term sustainability of Kenya’s agriculture in the face of a changing climate.