A proposed regional insurance risk pool was among suggestions at the inaugural Climate and Disaster Risk Financing and Insurance (CDRFI) Forum 2026 held in Nairobi recently.
The discussions looked at practical ways to strengthen financial protection for critical public assets and infrastructure after the Kenyan regulator, Insurance Regulatory Authority (IRA) convened the event.
Delegates included government officials, regulators and development partners from more than 20 African countries under the theme “Increasing Insurability to Close the Protection Gap in Africa.”
The event happened just days before ten African countries announced they are increasing their contributions to the International Fund for Agricultural Development (IFAD) in reaction to economic and climate shocks to agriculture across the continent.
At the Nairobi Forum, the commissioner of insurance and IRA CEO, Godfrey Kiptum, spoke about the growing pressure climate and disaster risks are putting on African economies, businesses and communities, as well as the role of regulators in building sound, trusted and inclusive insurance markets that can respond to these risks.
By embedding disaster risk financing and public asset protection into the regulatory landscape, IRA said it was future-proofing Kenya’s insurance sector, aligning it with global best practice while responding to local realities, and setting an example for regulators across Africa and beyond
Africa insures only 3%–5% of disaster losses, compared with about 40% globally, leaving governments to absorb more than 90% of losses estimated at US$7 billion–$15 billion.
The Forum opened with a call for countries to identify assets exposed to disaster risks, strengthen risk information and put financing arrangements in place before shocks occur. Counterparts from Jamaica and the Philippines were invited to share their national experiences in disaster risk financing and insurance.
The CDRFI Africa Forum is a ZEP-RE initiative, convened for the first time this year with the East Africa Insurance Supervisors Association (EAISA) and hosted by the government of Kenya through the National Treasury. It builds on the EAISA and ZEP-RE Strategic Forum, which has been convened annually for eight years, and brings Ministries of Finance into the dialogue following the 2025 Zanzibar Declaration adopted by EAISA.
Under the Declaration, insurance regulators from 12 countries pledged to support programmes to protect critical public infrastructure. The Forum called for these commitments to move from declaration to implementation through a sustained, government-led community of practice.
Representing the guest of honour, Felix Koskei, chief of staff and head of the Public Service was Dr Boniface Makokha, principal secretary for economic planning in Kenya’s National Treasury, who emphasised the importance of identifying assets exposed to disaster risks and determining in advance how their recovery would be financed.
“The question is no longer whether disasters will occur, but whether our countries are financially prepared when they do,” he said.
ZEP-RE managing director and group CEO Hope Murera called for a shift from emergency expenditure towards proactive financial preparedness. “Disasters should not become fiscal crises. Resilience is not a cost. It is an investment in growth and stability,” she said.
The secretary general of the Insurance Development Forum Ekhosuehi Iyahen, added the challenge is one of insurability, not insurance alone.
“Prediction has improved faster than protection. A protection gap is rarely just an insurance gap. It is almost always a development gap,” she suggested, highlighting shock-resilient loans, an emerging area of work exploring whether sovereign lending can be designed so that risk transfer mechanisms provide governments with automatic fiscal breathing space following a major shock.
Emiko Todoroki of the World Bank Group’s disaster risk finance practice called for financing strategies that are matched to each country’s risk profile. Governments could combine budget reserves, contingent financing, insurance and investment in risk reduction to address different levels of risk and strengthen financial preparedness before disasters occur.
James Sinah, of the World Bank Group, examined the financial instruments governments currently use and which risks may be better transferred to the private sector than retained on government balance sheets and identified three priorities:
- Protecting public assets as a feasible and immediate development priority rather than a long-term ambition;
- Recognising that no single financial instrument can address every risk, making risk layering essential; and
- Strengthening government leadership alongside regulatory support.
He also emphasised the importance of identifying and prioritising assets and, where possible, pooling risks regionally to create scale.
Meanwhile, Linet Odera, ZEP-RE group chief, public sector and inclusive solutions, highlighted three priorities for narrowing the protection gap:
- reliable data;
- stronger analytics and modelling capabilities; and
- innovation to advance insurance markets.
Better risk information, she noted, can strengthen resilience planning, support product development and contribute to market development.
As the Forum took place in Nairobi, 10 African countries announced they are increasing their contributions to IFAD and calling on international partners to match their ambition to accelerate rural transformation.
The group – Burundi, Chad, Ethiopia, Guinea, Kenya, Rwanda, Sierra Leone, Somalia, Sudan and Zimbabwe – announced the pledges during high-level meetings of the 81st Session of the United Nations General Assembly, saying it was a strong signal that investing in agrifood systems must be a strategic global priority and is central to economic opportunity, food security and stability.
William Ruto, President of Kenya, said “Kenya’s 50% increase in its pledge to IFAD is an investment in our rural communities and especially our young farmers who represent one of Africa’s greatest opportunities for growth and transformation.
“I join my fellow African leaders in calling on other donors and development partners to match our momentum by increasing their contributions to IFAD14 to drive rural prosperity, strengthen food security and build resilience in Africa and beyond.”
Together, the 10 countries have pledged nearly US$9 million to IFAD’s 14th replenishment cycle for 2028-2030 (IFAD14). Several countries have more than tripled their commitments, with the largest increases reaching nearly ten times their previous three-year contributions to IFAD.
These pledges come at a critical moment for the continent. Beyond food security, investment in rural areas is increasingly central to Africa’s economic transformation and to helping communities adapt to the growing impacts of climate change. With the largest generation of young people in its history entering the labour market, investing in rural economies will help shape Africa’s economic trajectory for decades to come.
Taye Atske Selassie, President of Ethiopia, stressed “Ethiopia’s commitment to IFAD14 reflects a fundamental conviction: food security, economic prosperity, and the future of our youth are inseparable from the success of our smallholders. Transforming Africa’s agriculture from a burden into an engine of growth requires that our continent takes primary responsibility for financing its own rural development”.
“African leaders recognize IFAD14 as a critical platform for strengthening the continent’s agrifood systems,” said Alvaro Lario, president of IFAD. “With nearly 60% of IFAD’s portfolio invested in Africa and the Fund’s focus on the ‘first mile’ of food systems, IFAD is uniquely positioned to both channel and catalyze investment to rural areas where the greatest opportunities exist to create jobs, build resilience and accelerate inclusive growth.”
IFAD’s financial model delivers greater development impact by combining member states’ contributions with loan repayments, supplementary funds, borrowed funds and various types of cofinancing with national governments, partner institutions, private-sector actors and small-scale producers.
According to IFAD’s latest development effectiveness report, projects assessed under its most recent replenishment cycle increased rural incomes by an average of 34%, boosted agricultural productive capacity by 35% and improved market access by 34%.
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