COUNTRY
                  PROFILES




            INDEX INSURANCE
             MARKET PROFILE

                      Kenya

                      GLOBAL INDEX
             I N S U R A N C E FA C I L I T Y




FUNDED BY




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    KENYA
                                                            COUNTRY PROFILES

    BACKGROUND
    In Kenya, where more than 96 percent of agricultural land is rain-fed and vulnerable to drought and erratic rain,
    mitigating weather-related risks for smallholder farmers is an important tool for unlocking credit.

    DEVELOPMENT IMPACT
    Increased investment and earnings: Kilimo Salama insured farmers invested 19% more and earned 16% more
    than neighboring uninsured counterparts (2012 impact study).
    Increased access to finance: Ninety-nine percent of KS’s 185,000 insured farmers have loans linked to insurance
    coverage. In Kenya alone, over 30,000 Kilimo Salama farmers were able to access $5.5 million in financing because
    they had insurance. (2012)

        Products Available:          Weather station based index, area yield index, and satellite-based index insurance for drought, excess rain, and
                                     diseases [livestock insurance being piloted]

        Crops Insured:               Maize, beans, wheat, sorghum, coffee, potatoes, livestock [indexes designed for tea, horticulture sunflowers, and
                                     soybeans but currently no clients for these products]

        Intermediary Brokers         ACRE (Agriculture and Climate Risk Enterprise) – formerly Syngenta Foundation for Sustainable Agriculture
        Launch Date                  2009
        Market Development           2010 2011
                                     2012
                                     2013 67,758
                                     2014 86,923 (August 2014)
        Local Insurers               UAP Insurance
        International Reinsurers     Swiss Re, Africa Re
        Calculation Agent

        Regulatory Environment
        Product Design:              The key to success has been offering a holistic solution to mitigate weather risks, not just insurance. Our
                                     profound understanding of agricultural risk enables us to develop customized insurance products using
                                     mobile technology, bundled with agricultural advisory services, weather data, local access to quality inputs,
                                     and input credit. Our products have allowed credit institutions to enter agricultural lending by mitigating
                                     weather-related repayment risk.

                                     130 solar-powered automated weather stations, satellite rainfall estimates, and government area yield statistics
        Data:
                                     (ACRE)
        Cost of Insurance:           5-10% of value of insured inputs or harvest (ACRE)
        Value Chain:                 mazie, beans, wheat, sorghum and coffee: distribution through MFIs, seed multipliers, input suppliers, farmer
                                     organizations
        Clients (Farmers):           223,000 farmers (2013 - Kenya: 67,758; Rwanda: 144,074; Tanzania: 4,310;) -- ACRE Syngenta Foundation for
                                     Sustainable Agriculture
        Total Insurance Portfolio    $7.6 million (Syngenta/ACRE)
        (sums insured)

        Payouts:                     $356,707 (2013 – Syngenta Fdn)
        Potential Market for Index   ACRE hopes to insure one million farmers in East Africa by 2016.
        Insurance:




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