Toward scalable agricultural insurance: Early evidence from a dynamic trigger program in Kenya
Timu, Anne G. · Shee, Apurba · Anahinga, Kennedy · You, Liangzhi
Aug 2026 · International Food Policy Research Institute
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About this ebook
Smallholder farmers in Kenya face substantial production and marketing risks driven by climate variability. In the arid and semi-arid areas of Eastern Kenya, rainfall is erratic even within a single season, yet most farmers depend on rain-fed production with little or no access to irrigation, credit, or savings to fall back on. Without a way to cushion these shocks, farmers are often reluctant to invest in inputs such as improved seed, fertilizer, and better agronomic practices that could raise their yields and resilience in good years. It is this chronic exposure to unpredictable and largely uninsurable risk that led the International Food Policy Research Institute (IFPRI), in collaboration with Kenya's Ministry of Agriculture, to design and scale an agricultural index insurance product for farmers in Eastern Kenya under the Kenya Agricultural Insurance Program (KAIP).
Smallholder farmers in Kenya face substantial production and marketing risks driven by climate variability. In the arid and semi-arid areas of Eastern Kenya, rainfall is erratic even within a single season, yet most farmers depend on rain-fed production with little or no access to irrigation, cre...
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