The African Reinsurance Corporation (Africa Re), in partnership with the International Finance Corporation (IFC), launched a three-day workshop in Nairobi today to address the critical gap in agricultural and climate insurance protecting the continent’s farmers.
The event brings together regulators, insurers, and tech innovators to develop strategies for scaling up insurance solutions, as climate change increasingly threatens millions of livelihoods and regional food security.
The workshop confronts a stark vulnerability: less than 2% of farmers in Africa, and under 1% in Kenya, currently have insurance coverage. This lack of a financial safety net against climate shocks, such as drought or floods, often blocks farmers from accessing credit, stifles investment in better technology, and traps rural communities in a cycle of poverty.
The forum’s central goal is to shift agricultural insurance from being perceived as short-term, donor-driven initiatives to becoming a mainstream, sustainable line of business.
“Together, we must shift agriculture insurance in Africa… to becoming a mainstream, sustainable line of business that protects farmers and supports food security,” said Dr. Phocas Nyandwi of Africa Re in his opening address. “We reaffirm our commitment to provide the reinsurance capacity, technical knowledge, and convening power to help these markets thrive.”
Throughout the workshop, participants will explore best practices in product design, digital distribution, and underwriting, drawing on successful public-private partnership models from Kenya, Rwanda, Senegal, and Nigeria. A key focus is on innovative solutions like parametric insurance—which enables faster payouts based on weather data—and leveraging mobile technology to reach remote farming communities.
Sanjay Kalpage, Senior Financial Specialist at IFC, emphasized that de-risking farming is essential for unlocking private investment across the entire agricultural sector.
“For private capital to flow into agriculture, investors need certainty. Climate insurance provides that certainty,” Kalpage said. “Our focus is on catalysing the market by supporting the creation of innovative, private sector-led insurance solutions. When we successfully de-risk the farmer, we de-risk the entire value chain.”
The workshop will conclude on Thursday with a field visit to a horticulture farm in Kiserian and a beef ranching operation in Athi River, giving participants a first-hand look at the climate risks impacting food production.
