Farmers abandon crop insurance in Laikipia

What you need to know:

  • Mr Eric Mukundi from the institute said this was attributed to non-realisation of farmers’ expectation such as compensation.
  • About 30 per cent of growers said they were not compensated after incurring losses, 27 per cent said the policy did not meet their expectations while 16 per cent said the project was not beneficial.
  • Another study by Tegemeo wants the government to integrate climate change in all agriculture policies.

Farmers in Embu and Laikipia counties have opted out of crop insurance due to failure by companies to honour their obligations when claims are made.

A study by Tegemeo Institute of Agricultural Policy and Development carried out this year, showed that the uptake of the cover stood at 34 per cent in 2012 but had declined to four per cent in Embu and seven per cent in Laikipia this year.

Mr Eric Mukundi from the institute said this was attributed to non-realisation of farmers’ expectation such as compensation.

About 30 per cent of growers said they were not compensated after incurring losses, 27 per cent said the policy did not meet their expectations while 16 per cent said the project was not beneficial.

The study said most farmers were yet to embrace crop insurance as they did not understand it.

About 49 per cent do not understand how it works, 20 per cent said it is now available in their area, 17 per cent said they do not need agricultural insurance while 14 per cent said it is expensive.

CLIMATE CHANGE

The survey noted that income diversification and crop cover could reduce the adverse effect of climate change.

It said insurance penetration in Kenya was estimated at three per cent while only seven per cent of the population had any form of policy mostly in the formal sector.

The survey noted that there was a need to develop different insurance products suitable for varying socio-economic conditions.

It also proposes capacity building on crop insurance at household-level with the government promoting uptake via education, campaigns and premium subsidy.

The purpose of the survey was to identify distinguishing characteristics of insured and non-insured households, and determine the level of farmer awareness about the product.

Another study by Tegemeo wants the government to integrate climate change in all agriculture policies.

Dr Justus Ochieng, who led a survey on effects of climate change on agricultural production, observed that there was a need to act and prevent further effect on farming.

He said the findings revealed a decline in the use of fertiliser by farmers for fear that harvests may not measure up to investments.