Title : Livestock farmers to get Sh200m drought relief
Livestock farmers to get Sh200m drought relief
Article business, Business Daily Kenya:
Wahinya Henry and George Kebaso @PeopleDailyKe
Pastoralists in six of the 23 counties most hit by the current drought will receive more than Sh200 million next week to cushion thousands of their animals from effects of harsh weather.
An estimated 12,000 households are targeted in a new public-private partnership programme that uses satellite imagery to monitor vegetation available to livestock and trigger payments for feed, veterinary supplies and water when animal deaths are imminent.
Payments will be made through the Kenya Livestock Insurance Programme (KLIP) by the end of the month. “This is the biggest livestock insurance payout ever made under Kenya’s agricultural risk management programme and the most important as well, because without their livestock, pastoralist communities would be devastated,” said Agriculture, Livestock and Fisheries Cabinet secretary Willy Bett at Kilimo House yesterday.
KLIP is intended to provide a safety net for Kenyan herders in arid and semi-arid lands. The programme was started in two counties, Turkana and Wajir, in the short-rains season of 2015. It currently also covers pastoralists in Mandera, Marsabit, Isiolo and Tana River.
The insurance plan uses satellites to monitor vegetation available to livestock and triggers assistance for feed, veterinary medicines and even water trucks when animal deaths are imminent.
Payments being dispatched this month are intended to help herders recover from the lack of vegetation growth during the so-called short rains period from October to December 2016.
If the drought continues during the long rains season, usually from March to June, additional large payouts are likely, according to the government.
Amounts to be paid will range from Sh1,450 per pastoral household in areas that have suffered modest losses to Sh29,400 in areas where drought is particularly severe.
The government developed KLIP with technical assistance from the International Livestock Research Institute, the World Bank Group, and Financial Sector Deepening Kenya, as part of a national strategy to end drought emergencies.
KLIP is administered as a public-private partnership with APA Insurance, which leads a consortium of seven Kenyan insurers— UAP, CIC, Jubilee, Heritage, Amaco and Kenya Orient—with backing from Swiss Re, a widely respected international reinsurer for agriculture.
“It’s important to make payments quickly and efficiently and before conditions deteriorate further, because we want these livestock-dependent communities to see index insurance as something they can trust to sustain their way of life,” said APA Insurance group chief executive Ashok Shah.
“It’s critical that others in the market also move quickly to supply pastoralists with livestock feed, water and veterinary medicines they can now afford,” he added.
In northern Kenya, herding household hold up to 100 per cent of their productive assets in the form of livestock. On average, sales from livestock and its products constitute over 40 per cent of total household income.
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