- The mega project was favoured by the tremendous success of an earlier insurance project by the World Bank, which earned Sh1 billion in premiums from Kenyan farmers just under one year.
- So far the project which started in 2022 has insured 73,000 pastoralists across 21 counties including Isiolo, Samburu, Marsabit, Wajir and Tana River
- Between 2021 and 2015, pastoral families which were insured under the project received over 1.2 billion payouts against the paid premium of 1.1 billion.
Follow us on Facebook and Twitter for real time updates
The State Department of Livestock (SDL) in partnership with ZEP-RE (PTA Reinsurance Company) and support of the World Bank Group (WBG) is set to launch a multi billion Drive Project to boost pastoralists’ economy that has been hit by a prolonged drought.
The project was fueled by the tremendous success of an earlier insurance scheme by the World Bank which 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.
Speaking ahead of the launch at the Sarova Panafric Hotel, State Department of Livestock Development Principal Secretary (PS) Harry Kimtai said that the project is expected to have a positive impact on enhancing the climate resilience of pastoral communities and address climate change.
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 subsidized 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
The project seeks to launch in the next two weeks and will be implemented in 21 ASAL counties including Turkana, Marsabit, Mandera, Wajir, Garissa, Tana River, Isiolo, Samburu, Meru, Tharaka Nithi, Baringo, West Pokot, Narok, Lakipia, Kajiado, Makueni, Kitui, Lamu, Taita Taveta, Kilifi and Kwale.
