Cotton farmers of Kerio Valley are all set to benefit from an insurance cover against the risk of drought. The new insurance product will now be introduced after the pilot project proved successful.
PlaNet Guarantee, a micro-financier, has partnered with Jubilee Insurance, Rift Valley Products, and Boresha Sacco to implement the pilot project based on satellite index for cotton farmers in Kerio Valley targeting over 2,000 cotton farmers. The satellite technology works by procuring rainfall data of the areas under coverage, precisely than any other technology.
Jubilee made the first claim payment to Boresha Sacco Society, which had financed the cotton farmers, while Rift Valley Products provided market for the cotton.
The response from the farmers clearly indicate there is need to develop the products suitable to the farmer’s tailor-made needs to assist them mitigate the risks they face. The small-scale farmers of Kenya, most of whom are low-income earners, have a low understanding of the concept of micro insurance.
PlaNet Guarantee has implemented the insurance product that protects farmers against the risk of drought.
Jubilee has provided the cover to majority of cotton farmers in Kerio Valley since the product launch earlier this year and plans to expand it to other cotton growing areas in Kenya.
Jubilee Insurance Kenya CEO, Patrick Tumbo, said this product was part of Jubilee’s efforts to expand its micro insurance and crop insurance, using technology as a medium that best delivers to low income earners. He said that this crop insurance gives a new hope to many of the small-scale farmers who often suffer perennial weather-related losses.