Drought insurance to be included in cost of seeds for Kenyan farmers

By Henry Gale

May 6 - (The Insurer) - Drought insurance will be included in the cost of agricultural inputs such as seeds and fertilisers under a pilot scheme in Kenya's Rift Valley.

Insurtech Ibisa Network and blockchain-based reinsurer Ensuro said they aimed to insure 20,000 farmers during 2025's long rain season in partnership with local social enterprise One Acre Fund.

The insurance policies are parametric, with claims paid automatically based on the precipitation during three key agricultural periods. Payout values depend on the number of consecutive days when precipitation falls below an agreed threshold. The companies are using blockchain-based smart contracts on the Polygon network to automate how claims are triggered.

One Acre Fund already provides crop insurance to farmers in Kenya, including through a partnership with insurance industry-backed charity Humanity Insured to subsidise premiums. "This initiative complements the existing work, providing subsidized additional drought coverage for the current long rain season, building upon the protection that One Acre Fund and its partners already offer," Ensuro said.