Kenya: Clear Smoke over Cover, Say Farmers

Source from:  The Nation 04/21/2010

Nairobi - Tobacco farmers have said the newly introduced insurance scheme is welcome though most are yet to understand what it entails. Amagoro MP Sospeter Ojaamong said the policies were good as long as the grower was made aware of what they were being enlisted for. He said farmers should be educated on how the insurance scheme works so that they can invest in what they understood well. "Take them through the insurance cover first as it is important for them to know what the insurance policy entails," said Mr Ojaamong. British American Tobacco Kenya in conjunction with UAP Insurance on Monday unveiled a crop insurance to cover tobacco farmers against adverse weather, pests and diseases. UAP head of marketing and distribution Joseph Kamiri said the scheme was intended to benefit farmers who have been incurring losses due to unfavourable weather patterns. "Farmers will pay a premium of 5.5 per cent and we shall compensate them up to 70 per cent of what they lose as a result of drought, hailstones or other effects of adverse weather," said Mr Kamiri. He said the scheme targets contracted farmers in Migori, Meru, Embu and Malakisi. BAT demand chain general manager Dirk Eloff said farm inputs are advanced to contracted farmers on credit, which they repay as they sell their produce to the company. He said that the input loan to each farmer is limited to a maximum of 20 per cent of projected gross income to ensure that the grower does not go home empty handed. A tobacco farmer Mr Evans Chelayi led other farmers in calling for an increase in the price of the produce. He said that the cost of inputs given to farmers by the factory is too high and the Sh122 per kilogramme of the highest quality tobacco delivered to their buying centres was too little for them to make meaningful profit. Enditem