Climate change and weather variability are perhaps some of the major challenges facing the
world today. In the phase of these challenges, various climate mitigation strategies including
financial, production, as well as marketing aspects have played a significant role in cushioning
farmers against adverse effects. In Kenya, agricultural insurance is still at a pilot stage after the
unsustainable effort in the 1970’s. Despite the noble intention to revive the crop insurance
industry, limited empirical information exists on farmers’ preferences for crop insurance. The
study employed Choice Experiment (CE) to elicit farmers’ preferences for crop insurance design
features among 300 farmers. The analysis employed a random parameter logit (RPL) model. The
results show that farmers are willing to pay for various features of crop insurance. These findings
are important in informing ex-ante design and improvement of crop insurance programmes in
Kenya and the rest of the world.
