World Insurance Day

Micro-insurance is the fundamental security system for farmers in enhancing food security. It safeguards farmers from financial shocks and natural forces beyond their control, such as; extreme weather patterns, crop failure and damage from pests and diseases.

In Tanzania, We Effect partnered with financial service providers and insurance companies among them; Mtandao wa Vikundi vya Wakulima Tanzania (MVIWATA) Mviwata-Arusha Uchumi Commercial Bank Limited – UCB Ltd and Mwanga Hakika Bank to sensitize smallholder farmers on micro-insurance value, develop affordable insurance, and establish effective distribution channels among our partner organizations.

Participants engage during the insurance open day in Tanzania.

Kenya is among the countries in the world with the lowest insurance uptake in the world with an insurance penetration of 2% yet there is an increase in risks to farmers associated with climate changes.

More than 75% of the country’s farmers are smallholders and highly vulnerable to climate variations and other shocks, which can have a significant impact on rural development and growth. Disaster relief has cost the Kenyan Economy an average KSh4.2bn ($41m) a year over 12 years according to the World Bank.

To avert this there is a need for protection to farmers in form of microinsurance. We Effect has realized to aid in ending poverty insurance is a key component in its area of programming. Insurance will protect against loss of assets to farmers and hence help reduce the vicious cycle of poverty.

That is why together with our partners’ Cooperative bank of Kenya, CIC Insurance Group, Machakos Cooperative Union and Lower Eastern Dairy Cooperative Alliance Limited (LEDCA), we commemorated World Insurance Day to emphasize the importance of microinsurance in realizing the right to food.

Follow the recorded live coverage.

• Kenya: https://fb.watch/7K5e6S7bfY/
• Tanzania: https://www.facebook.com/584656311676022/videos/200836121963898