Tea Crop Insurance

Background and rational:

In recent years, climate-related events have negatively impacted tea crop yields in Kenya, posing significant challenges to the tea industry. This affects over half a million smallholder farmers as well as tea estate farms, threatening livelihoods and business viability due to financial losses along the entire value chain. Key contributing factors include drought, frostbite, flooding, landslides, hailstorm damage, and the slow onset of agroecological shifts. Additionally, global geopolitical factors have affected trade and commerce within the tea commodity value chain. This underscores the need for an insurance solution to provide coverage for tea crops.

Scope of Cover:

Tea Crop Insurance provides coverage for physical loss or damage to growing tea crops caused by:

• Drought
• Uncontrollable pests and diseases
• Hailstone damage
• Flooding
• Fire and lightning
• Frostbite
• Landslides

Benefits:

Tea Crop Insurance offers financial protection, risk mitigation, business viability, comprehensive coverage, and peace of mind to tea farmers, ensuring stability against climate-related events and global geopolitical factors.