- The project is implemented in four Horn of Africa countries in Kenya, Ethiopia, Somalia and Djibouti as part of the Horn of Africa Initiative of building resilience to climatic shocks, facilitating trade and supporting value chains.
- The project in Kenya is financed by the World Bank at USD 140 million (Sh16.082 billion)
Before the official launch of this year’s livestock insurance program by President William Ruto, the government has upped its sensitisation exercise in 21 Asal counties.
On Wednesday, government trainers and Zep-Rep (A Comesa Reinsurance Company) started a three-day sensitisation program for deputy county commissioners, and senior officials in the county agricultural and livestock departments.
Also in attendance were representatives from the various banking institutions in the country.
The workshop dubbed “De-risking, inclusion and value enhancement of pastoral economies” is a project in the Horn of Africa that is being funded by governments and the World Bank to support farmers during the vagaries of drought.
The project is implemented in four Horn of Africa countries in Kenya, Ethiopia, Somalia and Djibouti as part of the Horn of Africa Initiative of building resilience to climatic shocks, facilitating trade and supporting value chains.
The project in Kenya is financed by the World Bank at USD 140 million (Sh16.082 billion).
To protect pastoral economies against drought risk, increase financial inclusion of pastoralists and better connect the pastoralist to markets.
It will also help to facilitate livestock trade across the HoA countries and upgrade the livestock value chain by mobilising private investments.
Speaking during the opening of the workshop in Kitengela, Michael Mbaka of Zep-Rep, said the World Bank project builds on the lessons learnt from the Kenya Livestock Insurance Program (KLIP) and is implemented through the State Department for Livestock in partnership with ZEP-RE and Kenya Development Corporation.
Mbaka said it targets 21 Asal counties of Turkana, Marsabit, Isiolo, Laikipia Mandera, Wajir, Garissa, Tana River, Taita Taveta, Kilifi, Kwale, Lamu, Meru (Meru North sub-county), Tharaka Nithi, Samburu, Baringo, West Pokot, Narok, Kajiado, Makueni and Kitui where pastoralism type of farming is done and drought insurance products for livestock are viable.
He said the project has two components which are De-risking pastoral production through a package of financial services.
The second component, he said, is promoting livestock chains through trade facilitation and private-sector support and will be implemented by Kenya Development Corporation.
Mbaka said component 1 (De-risking and Finance) will be allocated USD 75 million (Sh8.615 billion) to be used to subsidise insurance premiums, and promote saving and digital payments.
Component 1 Objective:
Mbaka said the objective is to protect pastoralists against recurring drought shocks with a package of financial services including drought index insurance, payment and savings.
He said component one will have a regional implementation arrangement and will be implemented by ZEP-RE but the delivery mechanism of financial packages will be through local financial institutions.
David Mwania from the State Department of Livestock said pastoralists are highly vulnerable to droughts and they tend large herds as protection against anticipated drought shocks.
“Yet when drought hits, the animals either die, lose value or are sold at rock-bottom prices to fund immediate needs,” Mwania said.
He said the project will protect pastoralists against drought with a package of financial services including (i) insurance that provides rapid payouts in severe droughts, (ii) savings to address moderate droughts, (iii) digital payment and savings accounts, and (iv) financial literacy.
Kajiado Agriculture CEC member opened the workshop and appealed to the livestock farmers in the region to register in large numbers.
The total sum insured per cow is Sh16,820 and the government will subsidise the amount of the first five cows per farmer at 80 per cent of the sum insured.