Abstract
This study aims to provide a comprehensive outlook on the active disaster insurance scene in the East African country, Kenya. It begins with a geographic and economic analysis of the country followed by its historical challenges with natural disasters, namely droughts. The study is both qualitative and quantitative in nature and mostly deals with secondary sources of data. Establishing the current status of the country, the discussion brings into light the three insurance programs that have gained prominence there in the last decade: Kenyan Livestock Insurance Program (KLIP), Area Yield Index Insurance (AYII), and Kilimo Salama or Safe Agriculture. These programs use state of the art remote sensing technology to determine the availability of pasture, crop yields, etc. through standardized vegetation indices. Once the indices reach a predetermined minimum threshold, they trigger the payout mechanisms of the respective programs, economically uplifting the vulnerable communities involved and avoiding potential disaster. The programs are partially subsidized by the government which allows ease of adoption for local communities and helps stabilize the economy by keeping the agriculture and livestock sectors in balance. The study also acknowledges the limitations faced by the programs in order to provide a more realistic depiction and aims to encourage the piloting of similar programs in other developing nations like Bangladesh.
 Res. Agric., Livest. Fish.8(1): 57-64, April 2021
Highlights
Kenya is one of the major countries in the African continent that has been seeing rapid economic growth in the recent decades
We will be taking a closer look at the disaster insurance programs that are currently available in Kenya through the collection of secondary data sources
Of the total 580,367 sq km of available land, 48.1% (279,157 sq km) of it is used for agriculture, while only 1,030 sq km of that land is irrigated, making the country’s agricultural production significantly dependent on rainfall and extremely susceptible to droughts. (Central Intelligence Agency, 2021) Figure 1 clearly depicts the aridity of the Kenyan landscape
Summary
Kenya is one of the major countries in the African continent that has been seeing rapid economic growth in the recent decades. When this variable reaches a certain minimum threshold, it triggers the program and despite the program being bought by the government, any claim made by the beneficiaries is promptly met with the predetermined coverage amount by the insurance companies themselves instead of channeling it through the bureaucratic system This swift response provides the pastoralists with ample time to purchase necessary fodder in order to keep their livestock alive. If a predetermined area unit fails to meet the minimum threshold of crop yields, the payout is triggered and all the farmers in that given unit receive indemnification This is a failsafe method as it cannot be manipulated by any single farmer’s ineptitude to farm in a single year and saves cost for the insurance providers by not having to employ field inspectors in order to settle any claims. The payouts are swift and help the farmers continue their livelihoods and reinvest in their crops for the coming years
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
