ACRE Africa Launches “Commoditized” Crop Insurance Scheme

Thousands of Kenyan smallholder farmers are set to benefit from a crop insurance scheme that will see them purchase insurance from agro-dealer shops for the first time. ACRE Africa has developed a cover that makes crop insurance a tangible commodity that can be purchased off the shelf. We are calling it “Bima Pima” which loosely translates to “insurance in affordable portions.” This is because the product is designed in such a way that farmers can buy the value of insurance they can afford or wish to insure at the time of purchase. Farmers will purchase the insurance scratch cards along with other inputs such as fertilizer and seeds.

Traditional insurance distribution models have been particularly challenging for micro insurance products because of the administrative costs that come with it. Expenses associated with selling the product increase the cost of insurance and makes premiums prohibitive to farmers. This consequently hampers uptake even when the product on offer is often beneficial to farmers.

BIMA PIMA will offer farmers index insurance that protects them against climate related risks for crops. Once a farmer registers, ACRE Africa will begin to monitor their farm via satellite. Payouts will be triggered by low rainfall or lack of it thereof.  This will be determined by satellite data and complimented by weather station.



  • Affordable: The different denominations/tiers will allow farmers to choose from an array of packages that suit their needs and affordability at the time.
  • Accessible to farmers as its well placed in agrovets and agrodealers shops where farmers buy their farm inputs
  • Scalable: Because it is easy to use, ease of distribution and a source of income. The product’s technology infrastructure automates almost the entire process so administration costs remain fairly low.
  • Convenient: Placement in shops without the need to sign policy documents makes activation easy for farmers and increases uptake.
  • Easy to use: The packaging gives the product mass market potential as many Kenyans are accustomed to mobile sign ups.
  • Augmented features: Farmers will be able to pay for premiums in small amounts over a period of time as opposed to a one off payment.
  • Sustainable –  Main revenue source for this product will be premiums from farmers.