Agricultural insurance to be offered separately amid rising climate risks

The Kenyan government has proposed a major overhaul of the agricultural insurance market by creating a standalone class of underwriting business targeting risks unique to the farming sector. In his budget speech, Treasury Cabinet Secretary John Mbadi announced amendments to the Insurance Act to formally establish agricultural insurance as an independent category. This reform aims to strengthen the regulatory framework for agricultural risk management and support food security, financial inclusion, and sustainable agricultural development. Currently, agricultural insurance products are largely housed under general insurance business despite carrying significantly different risk characteristics.