In a country where agriculture accounts for half of the government’s export revenue, it comes as a surprise when farmers fail to insure their livelihood. According to a report by the Encyclopedia of Nations, Kenya has more than 3 million farming families. Less than a third of these people have paid for crop cover in spite of the fact that 75% of the country is either arid or semi-arid.

Granted, some of Kenya’s farmers find it difficult to afford crop insurance, much less hybrid seeds that can survive harsh environmental conditions. In light of these problems, the government has offered some solutions in the recent past. The most current attempt at addressing these issues is a KES 20 billion loan aimed at building an irrigation scheme in Turkana.

Farmers in Turkana may benefit from the investment, but what happens when other problems arise? Crop farmers have a lot to lose before they can finally harvest their crops. Every season is a gamble. Plants can be damaged by drought, pests or diseases. In cases like these, insurance can be an added advantage in terms of revenue and food security.

Multiple Cover

Maize may be the country's most popular crop, but some farmers tend to grow other forms of produce. Since insurance only covers specific situations, it pays to know what kind of security you have. In which case, APA offers a service known as Multiperil Crop Insurance which covers crops like maize, beans, millet, rice, sorghum, wheat, barley, oats and peas among others. Calamities may also vary but the cover caters for produce damaged by drought, floods, fire, hailstones, riots, pests, sabotage and diseases. UAP Insurance also has a multiple cover system.

Credit

In addition to this, UAP gives farmers a chance to use their crop insurance as collateral in case they need to borrow cash for agricultural purposes. This credit can be used to purchase pesticides, farm implements and fertilizer.

For small-scale farmers, there is a service known as Kilimo Salama  (Safe-Farming). According to the Hunger Report, Kilimo also has a credit system which small-scale farmers can use to purchase agricultural products and boost their productivity.

Lower Consumer Prices

Crop insurance benefits the farmer, the retailer as well as the consumer. If there is no produce, the farmer cannot sell to the retailer and the consumer has nothing to eat. However, if there is a bumper harvest then crop prices are likely to decline. Dr John Omiti, an analyst at the Kenya Institute of Public Policy Research and Analysis (KIPPRA) said that the performance of the agricultural sector directly affects the cost of living. He notes that an increase in production could see the price of basic foodstuffs fall.

With crop insurance, a farmer can be sure of a harvest while a retailer can have a constant supply of goods. A customer can sit at home, comfortably knowing that his vegetables will arrive at the shops on schedule.