Economy
World Bank-backed livestock insurance drive signs up 73,000 herders
Wednesday April 12 2023
A World Bank-backed livestock insurance cover has earned Sh1 billion in premiums from Kenyan farmers in under a year. FILE PHOTO | NMG
A World Bank-backed livestock insurance cover has earned Sh1 billion in premiums from Kenyan farmers in under a year, highlighting growing interest among pastoralists seeking to shield themselves from drought-related losses.
The project dubbed De-risking, Inclusion and Value Enhancement of pastoral economies (DRIVE) that started in July 2022 has since insured 73,000 pastoralists across 21 counties including Isiolo, Samburu, Marsabit, Wajir and Tana River
The five-year initiative targets to cushion up to 250,000 pastoralist households in Kenya, Ethiopia, Somalia and Djibouti from the impacts of drought and better connect them to markets by end of June 2027.
“We have hit year-three targets in just two seasons, which shows the interest in the subsidised cover under the project and we remain optimistic more pastoralists will take it up,” said ZEP-RE chief executive Hope Murera.
The first component of the $360.5 million (Sh46.9 billion) project, which ZEP-RE is implementing, is financial services for climate resilience. The second component will be livestock value chains and trade facilitation.
Insurance will be provided to pastoralists who have five tropical livestock units (TLUs) per household. A TLU is equivalent to one mature cow, 10 sheep or 10 goats or 0.7 of a camel. It is measured to standardise livestock
DRIVE project seeks to strengthen support for pastoralists through access to rapid cash when there is drought, either through their savings or insurance payouts, allowing them to keep their core breeding stock alive.
At least 250,000 households per year will benefit by the end of the five-year program in Ethiopia, Kenya, and Somalia, representing a minimum of 1.6 million pastoralists and their dependents, with 250,000 digital accounts in use.
