Submitted by: Lucy Nondi - Kenya 

Kenya is amongst African countries experiencing adverse weather events like prolonged drought and locust infestations. This has heavily impacted its food security prompting developmental partnerships aimed at promoting agricultural insurance. However, this conventional product tends to focus on the output thereby untapping into agricultural inputs. One of the major inputs is the fertilizer which is crucial for crop growth. The price of fertilizers has increased following the aftermath of Covid-19. For instance, the price of a 50kg bag (crucial for maize production) has doubled over the past year forcing farmers to lower production or incur high costs. Great strides have been made on bio-fertilizers which have proven to be more economical. Farmers have attested to experiencing an 83% cost decrease and 30% increase in production. Insurers can therefore offer cover to bio-fertiliser producers with pay-out based on the difference between the targeted and actual outputs. The target output could be determined by monitoring outputs from biodigesters over a period. Notwithstanding, challenges like inadequate data and high cost of biodigesters are expected. However, with government support and farmers being more receptive to alternative fertilizers, bio-insurance will be a great milestone towards financial inclusion and sustainability.