In the sun-scorched fields of rural Kenya, where parched earth splits wide under years of relentless drought and a single flash flood can erase an entire season’s labor in hours, Mary Wanjiku stands among her maize. The slender stalks bend and whisper in the hot wind. A smallholder farmer in Kitui County, she has coaxed life from these same two acres for more than 10 years, feeding her family of five and carrying whatever surplus she can to the local market.
However, in recent years, the rains have become unreliable—coming too late, too little, or all at once. “Last year, the drought hit hard,” she recalls, her voice steady but tinged with the memory of loss. “My crops dried before they could mature. We barely had enough to eat, let alone sell.”
Mary’s story is not unique; it mirrors the struggles of millions of smallholder farmers across Africa, where climate change is reshaping the agricultural landscape. Smallholders produce nearly 70 percent of the continent’s food but bear the brunt of climate change’s impacts.
The growing threat of climate change
Climate change is no stranger to sub-Saharan Africa. Rising temperatures, erratic rainfall, prolonged droughts, and intensifying floods are disrupting farming cycles, reducing yields by up to 20 percent in some regions, and pushing millions towards food insecurity.
Smallholder farmers, particularly those cultivating less than two hectares, remain the most vulnerable. With limited access to technology, finance, or timely information, many of them women like Mary contend with eroding soils, surging pests, erratic rains, and wild price swings that threaten already precarious livelihoods.
Without safety nets, a failed harvest can push families deeper into poverty, forcing them to sell assets, withdraw children from school, or migrate to urban areas in search of survival.
Innovative solutions: Acre Africa’s role in climate risk management
Amid this uncertainty, Acre Africa (Agriculture and Climate Risk Enterprise) has emerged as a lifeline for smallholder farmers. As a pioneering insurance intermediary, Acre Africa helps farmers manage climate-related risks and pest invasions, ensuring they have the financial protection needed to withstand shocks.
Now in its 11th year, Acre Africa has insured over 3.5 million farmers across East Africa, disbursing more than $100 million in payouts. By leveraging index-based insurance, the company provides a safety net that enables farmers to invest in their land with confidence, knowing that a bad season won’t spell ruin.
Mary’s turnaround began when she enrolled in Acre Africa’s weather index insurance through a local cooperative. When the drought hit again, an automatic payout arrived via mobile money within weeks, enabling her to buy seeds for the next planting. “It gave me hope,” she says. “Now, I plant without fear.”
The technical backbone: Decoding index-based insurance
Acre Africa’s impact is rooted in cutting-edge technology and data-driven solutions. The cornerstone of their insurance offerings is index-based insurance, which differs from traditional crop insurance because it relies on objective data triggers rather than on-the-ground assessments.
“Our products are designed to respond quickly to climate shocks without the need for costly field visits,” explains Farid Wangara, Chief Business Officer at Acre Africa.
Technology is the key enabler in this model. Satellite imagery, such as the Normalized Difference Vegetation Index (NDVI), provides high-resolution views of crop health, measuring plant greenness to infer stress from drought or floods. Acre Africa also employs mobile apps, like SeeItGrow, which allows farmers to upload photos of their fields. Artificial intelligence (AI) analyses these images for damage assessment as part of its Picture-Based Insurance product.
This hybrid approach, combining satellite data with ground-level inputs, yields more accurate and timely payouts for farmers.
Expanding reach: Acre Africa’s growing presence
Acre Africa, already active in Kenya, Rwanda, Tanzania, Zambia, Zimbabwe, and Nigeria, is accelerating its expansion. The company is now advancing projects in 15 additional countries and plans to broaden its reach with new regions and products, including livestock insurance.
“We want to insure over 5 million farmers by 2026,” says Wangara. “We’re also piloting AI-driven advisories and exploring blockchain to expedite claims processing.”
Acre Africa offers a range of insurance products that cover natural disasters, including floods and droughts, as well as pest invasions, livestock diseases, and low milk production. They use a multi-pronged strategy to extend their reach, partnering with cooperatives, agribusinesses, and village-based agents to bundle insurance with inputs or credit.
Supporting farmers through education and accessibility
One of the challenges Acre Africa faces is convincing farmers, especially those in remote areas, to embrace insurance. To address this, Acre Africa relies on a network of farmer champions, like Wycliffe Mwake, a champion farmer from Makueni County, who now leads a group of 250 farmers.
Wycliffe, who has nearly 10 acres of land, says the insurance has given him peace of mind. “Even in difficult seasons like floods or droughts, I know that Acre Africa will compensate me to continue farming,” he says.
However, he acknowledges the challenge of overcoming the skepticism some farmers have toward the insurance program. “There is still a need for more training and sensitization to help farmers fully appreciate its benefits,” he adds.
To improve accessibility, Acre Africa offers premiums starting at just $5-10 per season, often subsidized by its partners. By bundling insurance with loans or seed supplies, they reduce costs for farmers. Premium payments can be made through mobile money platforms like M-Pesa, and farmers can easily enroll via USSD codes on basic mobile phones.
A digital revolution in insurance
Acre Africa has also developed DigiBima, a robust omnichannel platform that facilitates the seamless administration of insurance contracts. From farmer onboarding and policy registration to premium payment, season monitoring, and claims settlement, DigiBima simplifies the insurance process and makes it more accessible to farmers, especially in remote regions.
The platform complements the work of village champions, who can use it to train farmers on the benefits of agricultural insurance.
Looking to the future: Scaling up and innovation
Looking ahead, Acre Africa has ambitious plans to insure over 5 million farmers across the continent by 2026, expanding to West Africa and introducing new products for livestock and other value chains.
“We are exploring new ways to improve efficiency, such as using AI-driven advisory systems and blockchain technology for faster claims,” Farid Wangara shares. “Our goal is to close the protection gap where only 3 percent of African smallholder farmers are insured.”
With innovative offerings such as Acre Africa’s insurance products, smallholder farmers across the continent are finding hope in the face of climate change uncertainty. By delivering financial protection, Acre Africa empowers these farmers to navigate the challenges—both literal and metaphorical posed by a shifting climate.
