The World Bank-supported livestock insurance program for Kenyan farmers has enrolled more than 138,000 herders, highlighting the growing popularity of the scheme.
The Ministry of Agriculture and Livestock Development revealed the figures on Wednesday, adding that farmers benefited from benefits worth more than Sh2.7 billion in claims payouts and government insurance premium subsidies.
Called De-risking, Inclusion and Enhancing the Value of Pastoral Economies (Drive), the five-year project was launched to protect farmers in the wake of the devastating 2022 drought that killed at least 2.5 million livestock.
“Drive Incentives, which has so far reached over 138,000 herders in 12 counties with insurance and savings incentives, has transferred benefits of over Sh2.7 billion to herders,” the ministry said in a statement.
This plan is implemented by the State, the World Bank and the insurance company ZEP-RE and seeks to enhance support for herders through quick access to cash in the form of insurance payments or savings whenever there is a drought.
Climate resilience
The project provides insurance to herders who have five tropical livestock units (TLUs) per household.
One hand-use unit includes a mature cow, 10 sheep or an equivalent number of goats or 0.7 percent of camels. This is the unit used to standardize livestock in the project.
The first component of the project entails providing financial services to enhance resilience to climate change, while the second phase will include livestock value chains and trade promotion.
The campaign also seeks to include pastoralists in the value chain and facilitate livestock trade in the Horn of Africa.
The project is also being implemented in Ethiopia, Djibouti and Somalia, targeting 250,000 pastoralist families in the four countries.
Exports increasing
The state believes that the project is essential to enhance the carcass weight of cows from the current 110 kilograms to 150 kilograms and above to achieve competitiveness in local and global markets.
This would enhance the chances of Kenyan herders to increase their exports to leading economies such as the UAE which recently allowed Kenyan beef exporters to sell meat directly to supermarkets in Gulf countries.
Registered herders with more than half a million tropical cattle units or cattle equivalents were insured under the scheme in Garissa, Isolo, Kajiado, Laikipia, Lamu, Mandera, Marsabit, Narok, Samburu, Tana River, Turkana and Wajir.
The project is set to expand to include Meru North, Baringo, West Pokot, Kilifi, Kwale, Tita Taveta, Tharaka Nithi, Kitui and Makueni.