Britam pays Sh97 million as weather shocks batter farmers

Britam paid out Sh97.3 million in insurance claims last year to help more than 400,000 farmers and pastoralists recover from drought and other climate-related losses.

This highlights the growing financial toll of extreme weather across East Africa.

According to the insurer’s 2025 Sustainability Report, a total of 402,681 farmers and livestock keepers in Kenya, Uganda and Tanzania received support through crop and livestock insurance programmes designed to cushion vulnerable communities against increasingly erratic weather conditions.

The bulk of the payouts went to crop farmers, who received Sh80.4 million in claims after adverse weather conditions affected harvests.

The number of farmers covered under Britam’s crop insurance programme rose sharply by 83 per cent, from 161,521 in 2024 to 294,799 in 2025, reflecting growing demand for protection against climate-related risks.

The insurance products rely on satellite data and pre-agreed weather thresholds to trigger compensation, allowing claims to be processed more quickly than traditional insurance models.

Such products have become increasingly important as farmers face prolonged droughts, irregular rainfall and shifting planting seasons that continue to disrupt food production across the region.

Pastoralists also felt the effects of harsh weather conditions. More than 107,000 livestock keepers were covered under Britam’s livestock insurance programme, with Sh16.9 million paid out to affected households.

The cover helps herders recover from losses linked to drought and pasture shortages, which have become more frequent in parts of East Africa.

Beyond insurance, the report points to a growing focus by corporations on environmental conservation as climate concerns move higher on business agendas.

Britam commissioned a solar power installation at its Nairobi headquarters in October 2025, a move expected to supply more than half of the building’s electricity needs.

The project is projected to generate 390,000 kilowatt-hours of clean energy annually while reducing carbon emissions by nearly 200 tonnes each year.

The company also expanded its reforestation activities through the Britam Foundation, planting 86,000 trees in the Mt. Elgon Water Tower and restoring more than 444 acres of degraded land.

The initiative supported the creation of 1,358 green jobs in surrounding communities and forms part of a broader target to plant 60 million trees by 2030.

In a bid to improve accountability in conservation projects, Britam introduced a digital platform known as TAWI in May this year.

The system tracks and verifies tree-planting activities in real time, helping monitor survival rates and environmental impact.

The report also highlighted social and governance indicators. Through its Lea Mama maternal health programme, more than 3,300 mothers were enrolled in 2025, while the company reported zero corruption incidents across its operations.

Britam further contributed Sh3.1 billion in taxes across its seven African markets during the year.

The figures underscore how climate resilience, environmental conservation, and governance are becoming increasingly intertwined with business performance as companies navigate rising sustainability expectations from investors, regulators and communities.