NAIROBI, Kenya, June 15 – More than 1,700 smallholder farmers have received over Sh1.9 million in climate insurance payouts after rainfall shortages affected agricultural production between October and December 2025.
The payments were made to 1,736 farmers out of 2,083 covered under a climate insurance programme offered through a partnership involving APA Insurance, SunCulture, Humanity Insured and IBISA.
The payouts come less than a year after the insurance product was introduced, highlighting the growing impact of climate-related weather disruptions on Kenya’s agricultural sector.
The insurance cover was launched in October 2025 and has since been activated during both drought and excessive rainfall seasons, reflecting the increasingly unpredictable weather conditions facing farmers.
The programme is integrated into SunCulture’s Pay-As-You-Grow solar irrigation model, meaning farmers are automatically enrolled when they acquire irrigation systems through the financing scheme.
The insurance relies on satellite-based rainfall monitoring to determine when payouts should be triggered. Compensation is automatically released when rainfall levels fall below or exceed predefined thresholds.
For farmers still repaying their irrigation equipment, payouts are used to reduce outstanding loan balances. Those who have completed repayments receive the money directly through mobile payment platforms.According to the programme partners, the approach is designed to provide quick financial relief and help farmers continue operating after weather-related losses.
The initiative currently covers 3,444 SunCulture customers and is expected to expand further as demand grows for climate risk protection in agriculture.
Agriculture remains one of the sectors most vulnerable to climate change in Kenya, with prolonged droughts and erratic rainfall increasingly affecting crop yields, farmer incomes and food security.Insurance products linked to weather data are emerging as one of the tools being adopted to help farmers manage climate risks and recover more quickly from adverse weather events.
