DR. SANDE PROTAZIO – AG. CEO, IRA UGANDA
On August 12, 2026, the Daily Monitor published a disturbing report on page 32 under the headline, ‘Thugs kill 220 animals on farm on disputed land.’ The article drew my attention and provoked several questions. How did the farm owner cope with receiving such devastating news? Was the farm supported through financing by a bank or another financial institution? Most importantly, what risk-management and financial protection mechanisms had the owner put in place to safeguard the livestock investment?
These questions take on even greater weight when we reflect on the scale of the tragedy. The report noted that the horrific incident unfolded in Kiwambya Village, Kalongongo Sub-County, Nakasongola District, where unknown assailants slaughtered 200 goats and 20 cows, leaving ten workers injured. For a farmer who had poured substantial financial resources and human effort into building such a livestock enterprise, this must have been not only profoundly painful but also a devastating financial setback
The incident raises a wider question: what financial protection mechanisms are available to farmers when losses of this magnitude occur? Agricultural insurance is one such mechanism. The injuries sustained by workers also bring into focus the importance of appropriate employee protection. This is not a question for one farmer alone, but rather a critical consideration for every farmer, agricultural investor, and financial institution supporting the sector.
Agriculture, by its very nature, is exposed to multiple risks. Farmers contend with losses from disease, accidents, extreme weather, theft, fires, and other unforeseen events. Livestock farmers, in particular, can see years of investment wiped out in a matter of hours. When a farmer manages hundreds of animals, the financial vulnerability is immense, underscoring the urgent need for robust risk management, including appropriate mechanisms for risk prevention, risk mitigation and risk transfer through insurance.
This is where agricultural insurance can become an important risk-management tool. While the exact protection depends on the policy and insurer, appropriate livestock or agricultural insurance can help protect farmers against covered losses and provide financial support after an insured event. The purpose of insurance is not to place the insured in a better financial position following a loss, but, subject to the policy terms, to provide indemnification or financial support that cushions the impact of an insured event and facilitates recovery.
Imagine investing millions of shillings in livestock purchases, facility construction, worker wages, feed supplies, and veterinary care, only to lose a large portion of the animals in a single tragic incident. Without an effective risk‑transfer mechanism, the farmer is left to shoulder the entire burden personally. The consequences can ripple across cash flow, loan repayments, employees’ livelihoods, and even the farmer’s ability to rebuild the enterprise.
For those who rely on financing from banks or other institutions, insurance must be part of the broader conversation on safeguarding agricultural investments. While lenders focus on a farmer’s capacity to repay loans, farmers themselves seek to protect the very business that generates that income. In this way, appropriate insurance complements sound financial planning and credit-risk management by protecting the productive assets and income-generating capacity upon which loan repayment ultimately depends.
The injuries suffered by the ten workers in the reported incident also raise another important issue: employee protection and workers’ compensation. Agriculture is a labor‑intensive sector, and farm workers often face considerable risks. Whether handling livestock, operating machinery, working in the fields, or responding to emergencies, their daily tasks can expose them to significant physical and occupational hazards.
So, where an employee is injured in the course of employment, the resulting medical expenses and other financial obligations can place considerable pressure on the employer. Appropriate workers’ compensation arrangements can help provide financial protection for employees and reduce the financial burden on the employer, depending on the terms of the cover and applicable law.
The incident in Nakasongola serves as a painful yet vital reminder that anyone investing in farming should not only concentrate on expanding herd sizes or enlarging their farms, but also reflect on how to cope if a major loss struck tomorrow. Risk management must therefore be embedded within every agricultural investment. This begins with identifying and assessing the risks to which the enterprise is exposed, accurately valuing livestock and other productive assets, maintaining appropriate records, implementing measures to reduce preventable losses, and transferring appropriate residual risks through insurance.
The tragedy at Kiwambya Village is a reminder that investment protection is just as important as investment growth. Nobody expects disaster to happen, but responsible financial planning means preparing for any possibility.
For any farmer, therefore, the question should not only be, ‘What return will I earn from my animals or crops?’ It should equally be, ‘How resilient is my investment if a major shock occurs tomorrow?’ Sustainable investment requires attention to both return and risk. Ignoring this reality is like building wealth on sand where one unexpected storm can wash it all away.
Agricultural insurance, combined with sound financial planning, proper employee protection and effective farm management, can provide an important safety net. It cannot undo a tragedy or bring lost animals back, but it can help a farmer withstand the financial consequences and begin the journey towards recovery.
The tragic incident in Nakasongola should therefore prompt farmers and agricultural investors to critically review their risk-management strategies. Protecting an investment is neither a luxury nor an unnecessary expense; it is an integral part of building a resilient and sustainable agricultural enterprise. Agricultural insurance, alongside sound financial planning, effective farm management and appropriate employee protection, can help enterprises withstand shocks, recover from insured losses and remain productive over the long term.