Wednesday March 1, 2023
By GERALD ANDAE
A pastoralist walks with his herd of cattle along Kenya's Mombasa-Mariakani highway on February 18, 2023. Comesa insurance firm Zep-Re hs been appointed to cover underwriters for livestock farmers in a World Bank project meant to lessen the blow of drought in the Horn of Africa. PHOTO | WACHIRA MWANGI | NMG
Regional insurer Zep-Re has been appointed to cover underwriters for livestock farmers in a project meant to lessen the blow of drought in the region.
The $360 million programme supported by the World Bank means the firm, the insurance arm of the Common Market for Eastern and Southern Africa (Comesa), will cover underwriters in Kenya and four other countries in the Horn of Africa to de-risk livestock farmers.
Drought in the region has seen 11 million animals die so far and the Intergovernmental Authority on Development (Igad) last week warned the region should brace for more failed rains in the next season.
Djibouti, Ethiopia, Somalia and Eritrea are participating in this exercise for the first time leveraging on the success of the Kenya Livestock Insurance Programme that was introduced in 2015.
Protect pastoral economies
The programme dubbed Drive (De-risking, Inclusion and Value Enhancement of Pastoral Economies), is aimed at protecting pastoral economies against drought risk, to increase their financial inclusion and connect them to markets.
Zep-Re Chief Executive Rachel Murera said farmers will pay 20 percent as a premium while 80 percent will be covered by their respective governments under the funds that come in form of grant and loan.
“This scheme will play a big role in mitigating the effects of drought in participating countries, especially now when the drought situation is getting worse,” said Murera.
Food insecure
The Food Security and Nutrition Working Group estimates that close to 23 million people are currently food insecure in Ethiopia, Kenya and Somalia.
According to Igad, below-normal rainfall is expected in most parts of the Greater Horn of Africa over the next three months.
“In parts of Ethiopia, Kenya, Somalia and Uganda that have been most affected by the recent drought, this could be the sixth failed consecutive rainfall season,” said the agency in Nairobi this week.
Kenya says at least 2.6 million livestock have died in the past five months.
Kenya’s Agriculture Cabinet Secretary Mithika Linturi said severe droughts, on average, affects 3-4 million people in each cycle in the country with the most affected regions being arid and semi-arid lands.
“High exposure to severe drought shocks, and their devastating impact on livestock production systems informed the ministry to adopt livestock insurance for rangelands. Severe drought shocks not only disrupt the livestock production but also hurt livestock markets,” said Mr Linturi.
Mr Linturi said managing drought shocks, encouraging herders to offload animals that are ready for market, and supporting private sector investments in livestock value chain will unlock the potential of the pastoral production system.