Nairobi, June 11 -- The government has proposed a major overhaul of Kenya's agricultural insurance market by creating a standalone class of underwriting business targeting risks unique to the farming sector.

In his budget speech, Treasury Cabinet Secretary John Mbadi announced that the government will amend the Insurance Act to formally establish agricultural insurance as an independent insurance category.

The proposal marks the clearest regulatory shift yet towards ring-fencing agricultural risk cover from broader insurance classes as climate shocks intensify pressure on farmers and food systems.

"The government has initiated amendments to the Insurance Act to establish agricultural insurance as a standalone class of insurance busines...