• The government buys index-based livestock insurance cover for pastoralists in Wajir, Turkana, Marsabit, Garissa, Tana River, Samburu, Isiolo and Mandera
• Plans underway to introduce partial voluntary cover as part of Kenya Livestock Insurance Programme
The Kenya Livestock Insurance Programme (KLIP) has so far paid Sh700 million as compensation to about 18,000 pastoralists for livestock lost during droughts.
The payment was made in eight arid and semi-arid counties.
KLIP is a public-private partnership livestock insurance cover programme to cushion livestock owners against drought-induced losses.
Under this initiative, the government purchases index-based livestock insurance cover for pastoralists in Wajir, Turkana, Marsabit, Garissa, Tana River, Samburu, Isiolo and Mandera.
It was launched as a pilot project in Wajir and Turkana in 2014. It uses Normalised Different Vegetative Index satellite technology that identifies areas with low foliage cover for livestock before paying the insured pastoralists.
The lead underwriter is Takaful Insurance Africa. Peter Mwaniki, the managing director, says, “The payout caters for the cost of keeping the livestock alive. We look at different factors in making the payout including extremity of the foliage cover and number of livestock insured by the pastoralist.”
One of the targets of Agenda 13 of the Sustainable Development Goals is to improve local communities’ capacity and resilience to climate change and natural hazards.
Kenya Reinsurance Corporation's managing director Jadiah Mwarania regrets the low uptake of livestock insurance in Kenya compared to other forms of insurance covers.
“So far, the bulk of insurance premiums in the agricultural sector comes from the horticultural sector and commercial farming. Uptake is low because of lack of awareness and poverty levels that prevent the average farmer from investing in livestock insurance,” Mwarania adds.
The government plans to introduce partial voluntary cover as part of KLIP.
In March, Agriculture Cabinet Secretary Mwangi Kiunjuri disclosed that the government was contemplating paying extra cover for every cover purchased commercially by pastoralists.