Perception of microinsurance as a risk management tool for small holder farmers in Limuru, Kenya

Bansri, Mukeshkumar Patel
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Strathmore University
The aim of this study was to determine the perception of small holder farmers in Limuru towards microinsurance as a risk management tool for the risks they face. The purpose is to identify the gap that exists between what is offered in the market and what the small holder farmers actually want. The scope of this study was limited to the Limuru region in Kenya through questionnaires distributed to collect the data. The questionnaire consisted of questions that determine the risks the small holder farmers face, the strategies they use to manage the risks they currently face and if they have any insurance covers for their crops. It was discovered that the small holder farmers in Limuru face many risks but have not purchased any form of crop insurance to mitigate their risks which led to the conclusion that the small holder farmers in Limuru do not perceive microinsurance as a risk management tool. Small holder farmers can benefit from microinsurance in comparison to the risk management strategies currently used, which have drawbacks in the long-term. The government, reinsurance companies and insurance companies can offer microinsurance products at a cheaper rate to farmers which will prevent them from incurring the losses they face due to adverse events.
A Research project submitted in partial fulfillment of the requirements for the degree of Bachelor of Business Science in Actuarial Science at Strathmore University
Crop insurance, Microinsurance providers, Crop insurance products, Agricultural risks, Weather risks