Magazine date:
Mar 2011 The farmers are overburdened by the cost of insurance coverage of their tobacco fields. This insurance cover protects them against crop diseases and bad weather. The level of premiums has become such that the sale of production is not sufficient to ensure the financial stability of the farmers. The insurance scheme introduced by BAT Kenya enters its second year of implementation.
The tobacco company and UAP Insurance have negotiated a premium rate based on the value of the plants. BAT Kenya pays the insurance premium on behalf of the farmers who repay BAT without interest, after the sale of the harvest.