Scenes of IBLI work in northern Kenya (photo credit: ILRI). After almost five years of implementing Index-based Livestock Insurance (IBLI) across northern Kenya, ILRI’ is delighted to partner the Government of Kenya and the World Bank in a new government scheme to scale up pastoral livestock insurance against drought.

Written by Bryn Davies

Fred Segor, principal secretary in Kenya’s State Department of Livestock in the Ministry of Agriculture, Livestock and Fisheries and member of the board of trustees of the Kenya-based International Livestock Research Institute (ILRI), recently announced that a large government-sponsored livestock insurance scheme would begin being implemented this October in Wajir, Turkana and Marsabit at a cost of Kshs80.9 million (about USD800,000).

Fred Segor said the cover would be escalated to cover 14 of Kenya’s northern counties, targeting 5,000 households in the short term, to help them cope with recurring drought.

William Ruto, deputy president of Kenya, lauded this pastoral insurance initiative, noting that it was a culmination of intense research by the Kenya Ministry of Agriculture, the World Bank and ILRI to compensate farmers who buy insurance cover against the effects of drought.

Ruto pledged a further KShs200 million from the government towards the cover to hasten its expansion to all 14 counties of northern Kenya: Mandera, Wajir, Marsabit, Turkana, West Pokot, Baringo, Laikipia, Isiolo, Samburu,Garissa, Tana River, Lamu, Kajiado and Narok.

The new Kenya Livestock Insurance Program (KLIP) is essentially a scaling-up of an insurance product of ILRI’s, known as the Index-Based Livestock Insurance (IBLI), made possible through ILRI’s partnership with the World Bank Group and the Government of Kenya.

KLIP will offer limited livestock insurance contracts to targeted individuals in northern Kenya, with possible subsidies to the general public in later years. The government will provide premiums for households most in need, with individuals able to top up their KLIP policy and purchase more coverage if they choose to.

IBLI remains a separate insurance product: the ILRI’s micro/individual coverage will continue to be sold on a commercial basis across northern Kenya. While KLIP will initially cover select households in Wajir, Turkana, Marsabit and Mandera counties, IBLI will continue to be sold to private individuals in Wajir, Mandera, Garissa, Isiolo, and Marsabit counties through Takaful Insurance of Africa and APA Insurance Ltd. ILRI’s IBLI team also plans on continuing its expansion to Turkana and Samburu counties later in 2015.

Read the news clipping at KBC: World Bank to extend credit of shs. 6.5b to promote livestock, 20 Jul 2015.

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