Pan Africa financial services’ UAP Old Mutual has paid out Kenyan Sh79.5 million to 2,210 tobacco farmers across Kenya covered under its crop insurance scheme.

According to the group, the payment covers last season’s crop which was affected by floods, fire and drought.

Farmers in Western, Nyanza and Eastern Kenya contracted by cigarette manufacturer British American Tobacco Kenya are beneficiaries of the payout.

The insurer said the payment is one of the largest since it unveiled crop insurance scheme in 2007.

“Weather index insurance is based on historical rainfall data in given areas to aid assessment of insurance payout based on drought or excessive rainfall that in turn affects average crop yield,” said James Wambugu UAP Old Mutual group Managing Director for general insurance in a statement.

In 2015, Kenya piloted agriculture insurance by specifically focusing on livestock insurance in select counties.

The scope has since been expanded to include crop insurance. UAP Old Mutual also offers an agriculture based policy called replanting guarantee.

The insurer said it has expanded agriculture insurance from Kenya to Tanzania and Rwanda.

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