Pula Kenya, a leading Kenyan insurance and tech company has made its first big payout to help farmers in Ethiopia. The company paid out 39.4 million Ethiopian birr to over 51,000 small-scale farmers who had suffered losses.
This news was shared during Pula’s Area Yield Index Crop Insurance Payout event on April 25, 2024. At this event, they talked about the insurance they provided during 2023. They provided insurance to over 122,000 farmers to protect them from bad weather.
This payout happened because of a partnership between the Agricultural Transformation Institute (ATI), the World Food Program (WFP), and Pula, with funding from the German Federal Ministry for Economic Cooperation and Development (BMZ) through the KfW Development Bank.
Pula Kenya collaborates with Oromia Insurance Company, as well as other entities like the World Food Program and KFW, to offer agricultural insurance products to smallholder farmers in Ethiopia.
Insurance of Pula Kenya helps farmers protect their investments, especially in fertilizers. If something bad happens, like a climate related disaster, the payout helps them buy what they need for the next planting season.
Farmers pay 338 birr for each bag of fertilizer they buy to get insurance. If there is any disaster, they get a payout. Dagmawi Haileyesus, who manages Pula in Ethiopia, said that the maximum money a farmer can get back per bag is 1400 birr, and the least is 400 birr.
Initially, the insurance covered the farmers in the Amhara Region, but they plan to help 7.5 million farmers in different areas using the IVS system. IVS (Input Voucher System) is a format input distribution channel in Ethiopia.
At the event, some policyholders got their payout checks whereas, all insured farmers will get their checks soon.
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