CIC Insurance in collaboration with mutual insurance federation has launched a project aimed at raising the standards of farmers by insuring their products and livestock at a lower premium.
The project which is dubbed 5-5-5 aims at reaching 5 million farmers in 5 countries in 5 years. Kenya has been selected to represent Africa in the project.
Speaking during the launch of the project at a Kiambu hotel, the commissioner for cooperative development, Mary Mungai said the project will go a long way in expanding financial inclusion in the country.
She further pointed out that insurance for low-income populations is now firmly accepted as an integral tool for poverty alleviation and building resilience in communities against natural and man-made disasters.
CIC group of insurers CEO Tom Gitogo noted that microinsurance is a form of financial inclusion and access to it is a necessary precondition for increasing insurance penetration.
"The company is committed to providing the best and affordable insurance for dairy farmers and later we will extend to cash crops and other farm products. Our main aim is to empower the Kenyan small-scale farmer and make farming an experience to be proud of," said Gitogo.
Speaking at the same meeting, K-Unity Sacco Chairperson John Mbitu assured the organizers of the Sacco's commitment to creating more awareness among farmers who are members.
He cited the upcoming Sacco annual general meeting and other Sacco meetings where the 555 project awareness campaign will be at the peak.
This comes in the wake of many losses incurred by farmers due to the unpredictable weather change and natural calamities.