OPINION: How agri-insurance protects farmers’ investments

The planting season is here once again, and farmers across Kenya are looking to the skies with cautious optimism, hoping for adequate and well-distributed rainfall.

While hope remains a constant in agriculture, the reality today is that weather patterns have become increasingly unpredictable.

The earlier-than-expected onset of the 2026 long rains is yet another reminder of this growing uncertainty, and the strain it continues to place on the agricultural sector.

Recent experiences highlight just how severe these challenges have become. During last year’s short rains season, most parts of the country received only 30% to 60% of the expected rainfall.

This was not a minor shortfall. Kenya recorded its driest season since 1981, according to the World Health Organisation.

The ripple effects extended into 2026, with over two million people across ten counties facing drought conditions in January. Pastoral communities in North Eastern Kenya were particularly hard hit, suffering significant livestock losses.

When crops fail or livestock perish, the consequences go far beyond reduced yields. Entire livelihoods are placed at risk.

Agriculture remains a cornerstone of Kenya’s economy, contributing approximately 20% directly to GDP and a further 27% indirectly through linkages with other sectors, according to the Central Bank of Kenya.

The sector also employs over 40% of the population and supports more than 70% of rural households.

In essence, when agriculture struggles, the entire nation feels the impact.

This is why agricultural insurance is no longer optional: it is essential.

A single bad season can wipe out years of investment, draining resources meant for seeds, fertiliser, labour, and even basic household needs. Agri-insurance provides a critical safety net, enabling farmers to recover and rebuild when adverse events occur.

One key solution is crop insurance, which protects farmers against losses caused by factors beyond their control, such as drought, floods, and disease outbreaks. With CIC Insurance Group’s Crop Insurance, farmers can:

• Recover losses resulting from natural disasters 

• Maintain operations by covering costs such as labour and equipment, even after a failed season 

• Stabilise incomes and safeguard livelihoods against climate-related shocks 

For livestock farmers, the risks are equally significant. Losing an animal is not only emotionally distressing but also financially damaging. Livestock insurance offers compensation in cases of disease, fire, or necessary emergency slaughter due to medical conditions, helping farmers absorb shocks and continue their operations.

Ultimately, agricultural insurance is more than just a financial product. It is peace of mind. It enables farmers to plan with confidence, invest with assurance, and protect their future.

As climate risks continue to intensify, more farmers are recognising insurance not as an added cost, but as a necessary investment in resilience and sustainability.

This planting season, choosing agricultural insurance could make the difference between starting over and moving forward.

Michael Mugo is the MD-Designate, CIC Microinsurance Limited