Treasury Cabinet Secretary John Mbadi has announced that the Government has initiated amendments to the Insurance Act to establish agricultural insurance as a standalone class of insurance business.
This reform will strengthen the regulatory framework for agricultural risk management and support food security, financial inclusion, and sustainable agricultural development.
He disclosed this in his Budget Statement for the fiscal year ending 30 June 2027 (FY2026-27), which he presented last week.
Marine cargo insurance
Mr Mbadi also affirmed that, effective 1 July 2026, the Government will require all importers to obtain Marine Cargo Insurance cover from locally licensed insurers prior to customs clearance.
The objective is to deepen local insurance capacity and retain insurance premiums within the domestic economy, Mr Mbadi said this as he presented
Climate resilience
To strengthen climate resilience, the Government is promoting agricultural and index-based insurance products. Through the DRIVE (De-risking, Inclusivity, and Value Enhancement) Livestock Insurance Project, over 2.7m livestock valued at KES29.3bn ($226.5m) have been insured, while payouts exceeding KES648m have supported pastoral communities affected by drought since 2023.
Microinsurance
Commenting on some of the work of the industry regulator, Mr Mbadi said, “To expand access to insurance, the Insurance Regulatory Authority has licensed five micro insurance companies in the FY2024-5. This has increased access to affordable insurance, with over 11m lives covered as of 31 December 2025.
Strategic investments
Mr Mbadi also said that insurance companies, pension funds, savings and credit cooperative organisations (SACCOs), and retail investors will increasingly have opportunities to participate in strategic national investments, ensuring that the benefits and returns generated by these projects accrue to Kenyan citizens while supporting long-term economic transformation.