Enhancing smallholder resilience through index-based crop insurance: Evaluation of the aMaizing Project in Kenya

Smallholder farmers in Sub-Saharan Africa remain highly vulnerable to climate-induced shocks, with Kenya’s agriculture sector facing acute risks due to drought. Despite growing recognition of crop insurance as a risk mitigation tool, adoption remains below 1% among smallholders, largely due to affor...

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Autores principales: Mwungu, Chris, Otieno, Felix, Njambi, Agnes, Ghosh, Aniruddha
Formato: Informe técnico
Lenguaje:Inglés
Publicado: 2024
Materias:
Acceso en línea:https://hdl.handle.net/10568/173991
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author Mwungu, Chris
Otieno, Felix
Njambi, Agnes
Ghosh, Aniruddha
author_browse Ghosh, Aniruddha
Mwungu, Chris
Njambi, Agnes
Otieno, Felix
author_facet Mwungu, Chris
Otieno, Felix
Njambi, Agnes
Ghosh, Aniruddha
author_sort Mwungu, Chris
collection Repository of Agricultural Research Outputs (CGSpace)
description Smallholder farmers in Sub-Saharan Africa remain highly vulnerable to climate-induced shocks, with Kenya’s agriculture sector facing acute risks due to drought. Despite growing recognition of crop insurance as a risk mitigation tool, adoption remains below 1% among smallholders, largely due to affordability, limited awareness, and distribution challenges. The aMaizing Crop Insurance Project was implemented across 15 Kenyan counties to improve smallholder resilience by promoting index-based crop insurance bundled with climate advisories, training, and complementary services such as credit and certified inputs. This report evaluates the effectiveness of two core interventions—SMS-based agro-advisories and training through village champions—based on baseline and endline surveys conducted in five representative counties. Advanced econometric methods were used to assess outcomes on yield, income, and food security. Findings show that insured farmers experienced a 315 kg/acre increase in maize yields, a 13.97% improvement in food security, and higher crop income. Adoption was influenced by proximity to markets, training exposure, and access to climate information. However, adoption remains low due to systemic barriers and behavioral biases. Gender-disaggregated analysis revealed that women faced greater challenges but reported higher perceived benefits when targeted with tailored support. The project’s end-to-end digitization of the insurance process improved transparency and efficiency, enabling faster registration and payouts. These findings underscore the importance of bundling insurance with value-adding services, designing gender-sensitive approaches, and strengthening trust through transparent systems. Policy recommendations include expanding education campaigns, addressing affordability, and leveraging public-private partnerships to increase insurance penetration and build long-term resilience among smallholder farmers.
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spelling CGSpace1739912025-11-05T12:19:10Z Enhancing smallholder resilience through index-based crop insurance: Evaluation of the aMaizing Project in Kenya Mwungu, Chris Otieno, Felix Njambi, Agnes Ghosh, Aniruddha evaluation smallholders digital agriculture food security resilience risk management climate services insurance Smallholder farmers in Sub-Saharan Africa remain highly vulnerable to climate-induced shocks, with Kenya’s agriculture sector facing acute risks due to drought. Despite growing recognition of crop insurance as a risk mitigation tool, adoption remains below 1% among smallholders, largely due to affordability, limited awareness, and distribution challenges. The aMaizing Crop Insurance Project was implemented across 15 Kenyan counties to improve smallholder resilience by promoting index-based crop insurance bundled with climate advisories, training, and complementary services such as credit and certified inputs. This report evaluates the effectiveness of two core interventions—SMS-based agro-advisories and training through village champions—based on baseline and endline surveys conducted in five representative counties. Advanced econometric methods were used to assess outcomes on yield, income, and food security. Findings show that insured farmers experienced a 315 kg/acre increase in maize yields, a 13.97% improvement in food security, and higher crop income. Adoption was influenced by proximity to markets, training exposure, and access to climate information. However, adoption remains low due to systemic barriers and behavioral biases. Gender-disaggregated analysis revealed that women faced greater challenges but reported higher perceived benefits when targeted with tailored support. The project’s end-to-end digitization of the insurance process improved transparency and efficiency, enabling faster registration and payouts. These findings underscore the importance of bundling insurance with value-adding services, designing gender-sensitive approaches, and strengthening trust through transparent systems. Policy recommendations include expanding education campaigns, addressing affordability, and leveraging public-private partnerships to increase insurance penetration and build long-term resilience among smallholder farmers. 2024-09 2025-04-02T13:48:15Z 2025-04-02T13:48:15Z Report https://hdl.handle.net/10568/173991 en Open Access application/pdf Mwungu, C.; Otieno, F.; Njambi, A.; Ghosh, A. (2024) Enhancing smallholder resilience through index-based crop insurance: Evaluation of the aMaizing Project in Kenya. Nairobi (Kenya): Bioversity International and International Center for Tropical Agriculture (CIAT). 121 p.
spellingShingle evaluation
smallholders
digital agriculture
food security
resilience
risk management
climate services
insurance
Mwungu, Chris
Otieno, Felix
Njambi, Agnes
Ghosh, Aniruddha
Enhancing smallholder resilience through index-based crop insurance: Evaluation of the aMaizing Project in Kenya
title Enhancing smallholder resilience through index-based crop insurance: Evaluation of the aMaizing Project in Kenya
title_full Enhancing smallholder resilience through index-based crop insurance: Evaluation of the aMaizing Project in Kenya
title_fullStr Enhancing smallholder resilience through index-based crop insurance: Evaluation of the aMaizing Project in Kenya
title_full_unstemmed Enhancing smallholder resilience through index-based crop insurance: Evaluation of the aMaizing Project in Kenya
title_short Enhancing smallholder resilience through index-based crop insurance: Evaluation of the aMaizing Project in Kenya
title_sort enhancing smallholder resilience through index based crop insurance evaluation of the amaizing project in kenya
topic evaluation
smallholders
digital agriculture
food security
resilience
risk management
climate services
insurance
url https://hdl.handle.net/10568/173991
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