Microfinance Focus, October 17, 2011: More than 1,400 small scale farmers who lost their crops in the Horn of Africa drought this year received US$9,230 each in September from microinsurance scheme Kilimo Salama.

Launched in 2010, Kilimo Salama offers crop insurance to small scale farmers in Kenya. The project is a partnership between Syngenta Foundation for Sustainable Agriculture, UAP Insurance, and telecoms operator Safaricom.

In collaboration with metrological department, Syngenta has set up solar powered weather stations. Farmers register with one of 30 solar-powered weather stations, each covering a 15–20 kilometre radius, and purchase insurance when buying seeds and fertilisers. Kilimo Salama uses data from these stations to calculate the severity of droughts — or excessive rainfall. Eligible farmers then receive payouts via their mobile phones.

According to a SciDev.Net report, the project initially enrolled 9,000 farmers but the number has increased to 21,341 this year. In 2009-2010 it targeted maize, but this year it expanded to include wheat, beans, and sorghum.

"Since its inception, the project has been a big success," said Wairimu Muthike, project's lead field coordinator. He added, "The number of farmers willing to protect their crop by insuring their farm investments has increased tremendously. The sum insured among interested farmers has also been growing".