Kenyan livestock farmers to receive first drought payout
Livestock farmers in Kenya who signed up to a livestock insurance scheme could receive their first payments, after the worst drought in the region for 60 years. Under an insurance scheme, set up by the International Livestock Research Institute, Kenya (ILRI) farmers can claim compensation for animals that have died as a result of pastures drying up.
Insurers will assess in October 2011 whether Kenyan farmers signed up to the index-based livestock insurance scheme will receive their first payment. The scheme, which has been piloted in northern Kenya since early 2010, uses satellite data to assess the state of pastures. When the images show that pastures have dried up, farmers can claim compensation for animals that have died as a result, without insurers having to verify the deaths in person.
In Kenya about 2,500 farmers have bought the insurance since its inception, paying a yearly premium of up to $100 for six to eight animals. No payouts have been made yet, but farmers who lost more than 15% of their cattle could receive around $180 per animal.
“So far, the predicted mortality [rate is] high – but we have to wait for the final tally at the end of October in order to determine whether or not there will be a payout,” said Brenda Wandera, project development manager at ILRI.
The insurance scheme will be extended to southern Ethiopia in next February 2012 to help mitigate the effects of drought. The ultimate aim is to find a viable insurance tool that could cushion pastoralists from heavy losses experienced during droughts, according to Ms Wandera.
