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Published June 5, 2026agriculturebusinessclimate

Britam pays Sh97 million as weather shocks batter farmers

The bulk of the payouts went to crop farmers, who received Sh80.4 million in claims

Source-backed market reading focused on the local industrial developments, project signals, and operating consequences that are actually worth tracking.

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The bulk of the payouts went to crop farmers, who received Sh80.4 million in claims Britam paid out Sh97.3 million in insurance claims last year to help more than 400,000 farmers and pastoralists recover from drought and other climate-related losses. This highlights the growing financial toll of extreme weather across East Africa.

According to the insurer’s 2025 Sustainability Report, a total of 402,681 farmers and livestock keepers in Kenya, Uganda and Tanzania received support through crop and livestock insurance programmes designed to cushion vulnerable communities against increasingly erratic weather conditions.

The bulk of the payouts went to crop farmers, who received Sh80.4 million in claims after adverse weather conditions affected harvests. The number of farmers covered under Britam’s crop insurance programme rose sharply by 83 per cent, from 161,521 in 2024 to 294,799 in 2025, reflecting growing demand for protection against climate-related risks.

The insurance products rely on satellite data and pre-agreed weather thresholds to trigger compensation, allowing claims to be processed more quickly than traditional insurance models. Such products have become increasingly important as farmers face prolonged droughts, irregular rainfall and shifting planting seasons that continue to disrupt food production across the region.

Pastoralists also felt the effects of harsh weather conditions. More than 107,000 livestock keepers were covered under Britam’s livestock insurance programme, with Sh16.9 million paid out to affected households. The cover helps herders recover from losses linked to drought and pasture shortages, which have become more frequent in parts of East Africa.

Beyond insurance, the report points to a growing focus by corporations on environmental conservation as climate concerns move higher on business agendas. Britam commissioned a solar power installation at its Nairobi headquarters in October 2025, a move expected to supply more than half of the building’s electricity needs.

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Britam pays Sh97 million as weather shocks batter farmers

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Document: The Star Kenya Business · Source: The Star Kenya Business

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