Climate shocks have renewed calls to scale up crop and livestock insurance for farmers in Rwanda. Currently, only six percent of farmers have insurance coverage, according to the Rwanda Agriculture and Animal Resources Development Board (RAB).
As a result, many farmers suffer heavy losses during droughts, floods, hailstorms and landslides. In contrast, insured farmers are now receiving compensation after unusual dry spells affected Agriculture Season A, which began in September.
Insured Farmers Receive Compensation
Alex Nizeyimana, a farmer from Ngoma District, belongs to a farming group that expects compensation after severe drought damaged their crops.
“During this season, an unexpected drought hit us,” he said. “Our land became almost like a desert. However, because we insured 70 hectares of beans, we can invest again next season.”
Nizeyimana is among thousands affected by the dry spells. However, very few farmers had insured their crops.
In Kayonza District, prolonged drought forced authorities to provide food assistance to more than 23,000 families. Meanwhile, Nyamasheke District reported that over 2,500 families lost crops after November ended without rainfall.
Farmers Urge Expansion of Insurance Subsidies
Nizeyimana called for wider insurance subsidies. He said drought affects all crops and livestock.
“Over the past three years, insurance compensated us after cows died,” he said. “Last year, it also covered soybean losses. However, low awareness and poor mindsets still limit uptake.”
Immaculée Mukankusi, a farmer from Nyamagabe District, shared a similar experience. She insured a cow valued at Rwf700,000 by paying Rwf21,000.
“When the cow died, the insurance company paid me the full value,” she said. “I encourage other farmers to adopt livestock insurance.”
How the Insurance Scheme Works
Under the National Agriculture Insurance Scheme (NAIS), locally known as Tekana Urishingiwe Muhinzi Mworozi, the government subsidises 40 percent of insurance premiums. The scheme launched in April 2019.
Joseph Museruka, NAIS Project Manager, said the timing to expand coverage is critical. He noted that more than 10,000 households were affected by extreme weather events between 2020 and 2023.
“I recall when 600 hectares in Mwogo Sector were destroyed just before harvest,” he said. “Farmers received Rwf292 million in compensation to reinvest.”
Insurance Costs for Livestock
For cattle, insurance costs 5.5 percent of the animal’s value. With subsidies, farmers pay 60 percent while the government covers the rest.
For pigs, insurance costs six percent of their value. Poultry insurance costs 5.5 percent. Fish insurance is calculated per gram and covers full value upon loss.
Insurance Costs for Crops
Crop insurance premiums vary by crop and investment level. For maize, farmers pay about Rwf31,000 per hectare after subsidies. Rice farmers pay about Rwf30,000 per hectare.
Other crops, including potatoes, chilli, beans, cassava and soybean, also qualify. Greenhouse farming insurance costs 1.5 percent of the investment value.
However, farmers argue that current policies only cover input costs such as seeds and fertilisers. They want insurance to also cover expected yields.
Billions Paid in Compensation
Since the scheme began, insurers have paid Rwf8.8 billion in compensation. This includes Rwf5 billion for crops and Rwf3.8 billion for livestock.
Despite this progress, uptake remains low. Across Africa, only three percent of farmers are insured. Rwanda stands at six percent.
Insurance Unlocks Access to Finance
Museruka said insurance also improves access to credit. Insured farmers receive about Rwf2 billion in bank loans each season.
He added that agricultural loans could rise from 6.6 percent in 2024 to 10 percent by 2029.
More Crops and Livestock to Be Added
Currently, at least 13 crops benefit from subsidised insurance. However, livestock such as goats, sheep and rabbits remain uncovered.
“We have received requests to include them,” Museruka said. “Under the 2024–2029 agriculture strategy, they will benefit.”
Local leaders also called for coverage of crops such as wheat and tea.
Government Plans Major Investment
Under the Second National Strategy for Transformation (NST2), the government plans to allocate 25 million US dollars, about Rwf33 billion, to expand crop and livestock insurance.
Officials say stronger insurance uptake will protect farmers, reduce disaster costs and strengthen food security amid increasing climate shocks.