The UAP Old Mutual Group has paid KES. 48M to tobacco farmers affiliated to British American Tobacco after drought, pests, diseases and fires affected the curing process during the 2017/2018 season.
The insurance payout is compensation to 1,200 tobacco farmers from Eastern, Western and Nyanza regions. Over Sh186 million shillings has already been paid to 3900 for the 2017/2018 to farmers covered by The UAP old Mutual Group agriculture insurance.
“As an organization we care for the well-being of our customers and what is important to them. We are grateful for this partnership and we look forward to growing it even more” said The UAP Old mutual group acting Managing director Insurance, Isaac Nzyoka who was present during the presentation of the cheque to BAT.
The UAP Old Mutual Group supports the agriculture through crop and livestock insurance solutions that derisk farmers in obtaining farming credit for agriculture production and agriculture operations expansion. The solution acts as a safety net against vagaries of weather and related issues ensuring farmers operations sustenance during good years and bad years.
The BAT contracted farmers were insured against drought, excessive rainfall, pests and diseases, flooding, frost, hailstorm, windstorm and fire.
The Kenya Agriculture Insurance Programme (KAIP), an insurance consortium which the UAP Old Mutual Group is part of, provides area yield insurance and Livestock index insurance to the Government of Kenya. The government in return subsidises premiums up to 50% for the crops and 100% for the livestock respectively.