Determinants of Khat Farmers’ Awareness of Agricultural Insurance: Evidence of Igembe North Sub County, Meru County, Kenya

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In Kenya, majority of farmers rely on rain-fed agricultural systems hence making risk and uncertainty an integral part of farming. Weather conditions can directly impact agricultural output and performance. Mitigating these hazards is a top objective for avoiding revenue loss and improving smallholders' wellbeing. Agricultural insurance, a long-standing idea, is now recognized and supported by public and private organizations as a crucial risk management instrument in light of climate change concerns. Awareness of agricultural insurance plays a crucial role in its adoption, as it helps individuals understand the benefits and protections it offers against unexpected agricultural financial losses. Ultimately, widespread understanding of insurance options and their value can lead to higher adoption rates, ensuring more individuals and families are adequately protected. This paper's data was collected from 323 khat farmers in Meru County, Kenya. According to empirical findings, credit access and occupation had a positive and significant effect on awareness of agricultural insurance. The farmer's age and the gender of the household decision maker had a negative and significant effect on awareness of agricultural insurance. This study finds that credit access has a significant impact on khat farmers' awareness of agricultural insurance. The study found that awareness was proportionate to loan access hence recommends strengthening farmers' credit facilities to access more financial resources. The findings of this study will provide decision-makers with evidence-based tools for effectively marketing and establishing demand-driven insurance solutions to fulfil the needs of khat farmers.