MICROCAPITAL BRIEF: Weather-Index Microinsurance Program Kilimo Salama Distributes $9k to Kenyan Farmers After Crop Failure

Roughly 1,400 farmers recently received USD 9,230 each after drought caused crop failure in Kenya, as part of the microinsurance program Kilimo Salama. The program offers protection to Farmers who pay a premium of 5 percent when they purchase seeds and fertilizers. In March 2011, 1,200 farmers received USD 3,135 each for losses following a drought under the same program.

In March 2010 Kilimo Salama, Swahili for “safe farming,” was launched to provide small-scale farmers with crop insurance. Data from local solar-powered weather stations are used to determine whether rainfall is high enough or low enough to negatively impact crop yield. When such impact occurs, farmers receive payouts through their mobile phones. The program insures maize, wheat, beans and sorghum. The number of farmers enrolled in the program is about 21,000.

By Cameron Milani, Research Associate

Sources and Additional Resources:

SciDev, “Micro-insurance scheme pays off for Kenyan farmers,” http://www.scidev.net/en/agriculture-and-environment/farming-practices/n

MicroCapital Article, September 29, 2010: “MICROCAPITAL BRIEF: Microinsurance Provide Kilimo Salama Makes First Payout to Kenyan Farmers Due to Low Rainfall,” https://www.microcapital.org/microcapital-brief-microinsurance-provider-k

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