The National Government has launched a programme that will see more than 100,000 households receive free insurance cover by 2019.
Dubbed Kenya Livestock Insurance Programme (KLIP), this is an initiative of the National Government in partnership with County Governments and private sector insurance companies.
Its objective is to reduce the risks of livestock mortality emanating from drought, and to build the resilience of vulnerable pastoralists in arid and semi-arid lands (ASALs ) of Kenya, through satellite-based index insurance, for enhanced and sustainable food security .
Two hundred and seventy five (275) households in the arid and semi-arid insurance units of Bute and Diff in Wajir County will be the beneficiaries of the season ending June 2016.
The programme will pay approximately Sh3,526,600 (USD 35,526) for losses suffered to their herds of sheep, goat, cattle and camels during the Long rains and long dry season that typically ended in June 2016.
The herds were insured last October by APA Insurance Company Ltd by premiums bought entirely by the National Government, with an Index-Based Livestock Insurance (IBLI).
Each house hold had five Tropical Livestock Units (TLU) insured. One IBLI uses satellite imagery—measuring the conditions of grazing lands—that is fed into an algorithm that predicts livestock loses.
Predictions beyond the 20 percent level trigger indemnity payments. Drought conditions in Bute and Diff insurance units of Wajir County have surpassed the index trigger and active contract holders in these areas will be compensated.
“The State Department of Livestock (SDL) purchases premiums on behalf of vulnerable pastoralists to cover five tropical livestock units (TLU) per household as a standard measure. One TLU is equivalent to one mature cow, or 10 sheep or goats, while 0.7 of a camel is equated to one TLU,” said Richard Kyuma, programme coordinator.
He said that the cover is an asset protection to provide pay outs to pastoralists for purchase of fodder to keep their livestock alive and is designed to have two possible payout seasons, the season of the long rains and the onset of the short rains.