What is the Kenya Agricultural Insurance Programme?
The Kenya Agricultural Insurance Programme (KAIP) is the government's subsidised crop cover: it pays half the premium for farmers insuring 0.5 to 20 acres of maize, sorghum, green grams, potatoes or onions. For pastoralists, the livestock programme KLIP was followed by DRIVE in 2022. Both are index-based agricultural insurance, sold through a pool of private insurers.
Which scheme or cover fits your farm?
Choose your type of farm to see whether a government scheme applies, or whether you need private cover.
| Your farm | What fits | Who pays |
|---|---|---|
| Maize, sorghum, green grams, potatoes or onions on 0.5 to 20 acres | Subsidised area-yield cover (KAIP), where your county runs it | Subsidised: government pays half the premium |
| Registered on KIAMIS and collecting subsidised fertiliser | Automatic yield cover in the 11 pilot counties (from 2025) | Included with the subsidy |
| Pastoral herd in an arid or semi-arid county | DRIVE pasture-index cover, which took over from KLIP in 2022 | Subsidised: the project pays most of the premium |
| Vulnerable pastoral household with under 5 TLU | KLIP cover paid in full by government, where the county is still enrolled | Free to the household |
| Dairy cows, zero-grazed or in paddocks | Private livestock cover on each valued, tagged cow | No subsidy: you pay the premium |
| Beef cattle, goats, sheep, pigs or camels on a commercial unit | Private livestock mortality and theft cover | No subsidy: you pay the premium |
| Poultry unit (layers, broilers or kienyeji) | Private poultry cover on the flock | No subsidy: you pay the premium |
| Tea, coffee, wheat, horticulture or any crop over 20 acres | Private multi-peril or named-peril crop cover | No subsidy: you pay the premium |
| Greenhouse or flower farm | Private greenhouse cover: structure, crop and equipment | No subsidy: you pay the premium |
| Wildlife damage to crops or livestock | Compensation claim to the County Wildlife Conservation and Compensation Committee | State compensation, not insurance |
Government schemes and private cover by type of farm (October 2026)
- What fits
- Subsidised area-yield cover (KAIP), where your county runs it
- Who pays
- Subsidised: government pays half the premium
- What fits
- Automatic yield cover in the 11 pilot counties (from 2025)
- Who pays
- Included with the subsidy
- What fits
- DRIVE pasture-index cover, which took over from KLIP in 2022
- Who pays
- Subsidised: the project pays most of the premium
- What fits
- KLIP cover paid in full by government, where the county is still enrolled
- Who pays
- Free to the household
- What fits
- Private livestock cover on each valued, tagged cow
- Who pays
- No subsidy: you pay the premium
- What fits
- Private livestock mortality and theft cover
- Who pays
- No subsidy: you pay the premium
- What fits
- Private poultry cover on the flock
- Who pays
- No subsidy: you pay the premium
- What fits
- Private multi-peril or named-peril crop cover
- Who pays
- No subsidy: you pay the premium
- What fits
- Private greenhouse cover: structure, crop and equipment
- Who pays
- No subsidy: you pay the premium
- What fits
- Compensation claim to the County Wildlife Conservation and Compensation Committee
- Who pays
- State compensation, not insurance
Checked 18 Oct 2026. Sources are listed at the end of this page.
KAIP: subsidised crop cover
The Kenya Agricultural Insurance Programme (KAIP) grew from a 2016–17 pilot and launched formally in 2018. It sells area-yield cover through a pool of private insurers, using about 3,500 insurance unit areas in roughly 40 counties.
Source: State Department for Agriculture, KAIP presentation (Financial Protection Forum, March 2024)
KAIP covers maize, sorghum, green grams, potatoes and onions, with rice, coffee and cotton planned.
Source: State Department for Agriculture, KAIP presentation (March 2024)
KAIP has reached about 1.8 million farmers in total (42% of them women), and about 55,000 farmers have received claims worth roughly US$2.5 million.
Source: State Department for Agriculture, KAIP presentation (March 2024)
A Murang'a example: KAIP maize cover cost KSh 1,240 an acre, split KSh 620 by the farmer and KSh 620 by the government, for a sum insured of KSh 10,395 an acre.
Source: Kenya News Agency (Murang'a)
How to enrol in KAIP
- See your extension officer early Before the long or short rains, ask your county agricultural extension officer when registration opens in your ward.
- Check your crop and area Confirm your crop is listed and your farm lies in an insured unit area, and that you farm 0.5 to 20 acres.
- Register and pay your half Fill in the registration form and pay your share of the premium at the start of the season, usually by M-Pesa.
- Keep your receipts Keep the registration slip and payment message: you need them if a payout is disputed.
- Wait for the crop cuts After harvest, sample plots decide the area yield. If it falls below the insured level, every insured farmer in the unit is paid.
KLIP and DRIVE: livestock cover for pastoralists
The Kenya Livestock Insurance Programme (KLIP) began in 2014–15 in Wajir and Turkana and grew to eight northern counties. The government pays the full premium for vulnerable pastoral households, for up to five Tropical Livestock Units each.
Source: National Agricultural Insurance Policy (December 2023)
Five Tropical Livestock Units (TLU) equal 5 cattle, 50 goats or sheep, or 1 camel and 4 goats.
Source: ILRI (March 2020)
KLIP paid KSh 299 million to about 15,000 households in December 2024, bringing its payouts since 2014 to KSh 706 million.
Source: Kenya News Agency, citing the State Department for Livestock
DRIVE (De-risking, Inclusion and Value Enhancement of Pastoral Economies) is a World Bank project launched in Kenya in October 2022 that took over from KLIP. It combines drought index insurance with savings and digital finance for pastoralists.
In Makueni, DRIVE paid 80% of the premium in the first year, leaving herders about KSh 800 per Tropical Livestock Unit, and gave a one-off KSh 6,000 savings bonus to herders who insured at least 3 units.
DRIVE's premium subsidy tapers over time, from 70% down to 55% of the premium.
Source: UNDP Insurance and Risk Finance Facility (June 2026)
What each scheme costs the farmer
| Scheme | Farmer pays | Cover | The rest |
|---|---|---|---|
| Subsidised crop cover (KAIP, maize, Murang'a) | KSh 620 an acre | KSh 10,395 an acre | Government pays KSh 620 an acre |
| KLIP pastoral cover | Nothing, up to 5 TLU | KSh 14,000 per TLU | Government pays about KSh 2,600 per TLU |
| DRIVE pastoral cover (Makueni, year one) | about KSh 800 per TLU | Pasture index cover | Project pays 80%; KSh 6,000 savings bonus at 3+ TLU |
| Fertiliser-subsidy cover (2025 pilot) | Nothing extra | KSh 7,000 per farmer | Built into the subsidy programme |
What government-backed farm cover costs the farmer
- Farmer pays
- KSh 620 an acre
- Cover
- KSh 10,395 an acre
- The rest
- Government pays KSh 620 an acre
- Farmer pays
- Nothing, up to 5 TLU
- Cover
- KSh 14,000 per TLU
- The rest
- Government pays about KSh 2,600 per TLU
- Farmer pays
- about KSh 800 per TLU
- Cover
- Pasture index cover
- The rest
- Project pays 80%; KSh 6,000 savings bonus at 3+ TLU
- Farmer pays
- Nothing extra
- Cover
- KSh 7,000 per farmer
- The rest
- Built into the subsidy programme
The national policy, new pilots and honest caveats
The National Agricultural Insurance Policy, a ministry document dated December 2023, proposes premium support, an agricultural insurance fund and pools, better risk data and a review of the law. It does not make insurance compulsory.
From 2025, farmers registered on KIAMIS who collect subsidised fertiliser in 11 pilot counties are insured automatically: about 250,000 farmers, with KSh 7,000 of yield cover each.
Source: HapaKenya, July 2025
An audit reported in April 2025 found that 355,876 growers (86.4%) left the state-backed crop insurance scheme between 2021 and 2023, frustrated by unpaid compensation.
No 2025-26 KAIP budget or current list of pool insurers had been published when we checked, and DRIVE does not name its participating insurers. Confirm with your county office before the season starts.
Government scheme or private cover?
| Government schemes | Private cover | |
|---|---|---|
| Who qualifies | Listed crops on 0.5–20 acres; registered pastoralists | Any farmer the insurer accepts |
| Cost to you | Half the premium, a small share, or nothing | The full premium, from about 4% of the value |
| What is insured | An area index, not your own farm | Your own crop, animals or greenhouse |
| Claim | Automatic if the index triggers | Report, inspection and documents |
| Basis risk | Yes | No: you are paid for your own loss |
| Best for | Food crops and pastoral herds | Dairy, poultry, greenhouses, commercial crops |
- Government schemes
- Listed crops on 0.5–20 acres; registered pastoralists
- Private cover
- Any farmer the insurer accepts
- Government schemes
- Half the premium, a small share, or nothing
- Private cover
- The full premium, from about 4% of the value
- Government schemes
- An area index, not your own farm
- Private cover
- Your own crop, animals or greenhouse
- Government schemes
- Automatic if the index triggers
- Private cover
- Report, inspection and documents
- Government schemes
- Yes
- Private cover
- No: you are paid for your own loss
- Government schemes
- Food crops and pastoral herds
- Private cover
- Dairy, poultry, greenhouses, commercial crops
Many farmers use both: scheme cover for the maize plot and private cover for the dairy cows.
Frequently asked questions
What is the Kenya Agricultural Insurance Programme (KAIP)?
KAIP is the government's subsidised crop insurance. It uses area-yield index cover sold through a pool of private insurers, and the government pays half the premium for farmers insuring 0.5 to 20 acres of maize, sorghum, green grams, potatoes or onions.
How do I enrol in KAIP?
Contact your county agricultural extension officer before the rains. Officers register farmers, often at ward meetings, confirm your crop and unit area are covered, and collect your half of the premium at the start of the season. Many farmers are also enrolled through seed, fertiliser or loan providers that bundle the cover.
How much does KAIP cost a farmer?
It depends on the crop, county and unit area. One Murang'a example priced maize cover at KSh 1,240 an acre, of which the farmer paid KSh 620 and the government KSh 620, for a sum insured of KSh 10,395 an acre.
What is the price of DRIVE livestock insurance in Kenya?
It varies by county and year because the subsidy tapers. In Makueni the project paid 80% of the premium in year one, leaving herders about KSh 800 per Tropical Livestock Unit, and herders who insured at least 3 units received a one-off KSh 6,000 savings bonus. The subsidy falls from 70% towards 55% over time.
What is the difference between KLIP and DRIVE?
KLIP, started in 2014–15, gave vulnerable pastoral households free satellite-pasture cover for up to 5 TLU. DRIVE, a World Bank project launched in October 2022, took over and widened it: herders pay a share of the premium, the subsidy tapers, and the cover comes with a savings account and bonus.
Is the Hunger Safety Net Programme a form of insurance?
No. HSNP is a government cash transfer to poor households in eight arid counties, paid whether or not they suffer a loss. Livestock index insurance pays insured herders when the pasture index triggers.
Does Kenya have a national agricultural insurance policy?
Yes. The National Agricultural Insurance Policy is a ministry document dated December 2023. It proposes premium support, an agricultural insurance fund and pools and a review of the law; it does not make cover compulsory. In June 2026 the Treasury also said agriculture would become its own insurance class.
What if a government scheme does not pay?
Ask your county office for the published result for your unit area, then raise it with the insurer that leads the pool. You can complain to the IRA, whose decision binds unless appealed. An audit found most KAIP growers left between 2021 and 2023 over unpaid compensation, so keep your registration and payment receipts.
Scheme or private cover?
Tell us your crop or herd, acreage and county. We tell you whether a scheme covers you and quote private cover where it does not.
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Sources (19)
- State Department for Agriculture, KAIP presentation (Financial Protection Forum, March 2024)
- National Agricultural Insurance Policy (December 2023)
- Kenya Development Corporation, DRIVE project sheet
- HapaKenya, July 2025
- Wildlife Conservation and Management Act 2013, s.25
- State Department for Agriculture, KAIP presentation (March 2024)
- Kenya News Agency (Murang'a)
- Kenya News Agency (Kirinyaga, May 2024)
- ILRI (March 2020)
- Kenya News Agency, citing the State Department for Livestock
- Makueni County Government (May 2024)
- UNDP Insurance and Risk Finance Facility (June 2026)
- State Department for Livestock submission to the UNFCCC
- National Agricultural Insurance Policy, Ministry of Agriculture and Livestock Development (December 2023)
- Nation, April 2025, reporting the audit
- National Drought Management Authority, Hunger Safety Net Programme
- Business Daily, 11 June 2026
- Insurance Act (Cap 487), s.204A
- One insurer's published rate bands, insurers' published minimum premiums, government scheme figures and anonymised market estimates, gathered October 2026; PCF levy from the Insurance (PCF) Regulations 2010
Facts and published prices checked 18 Oct 2026; last reviewed October 2026 by Naveah Capital. Rates shown are published bands, scheme figures and market estimates before levies, not a quote or a promise. Naveah Capital Insurance Agency is an IRA-licensed insurance agency in Nairobi; this page is general information, and your policy wording decides your cover.
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