Herders who took out livestock insurance under the Index-Based Livestock Insurance Project in a 2011 meeting in Marsabit, Kenya. A new markets book highlights the role of the insurance scheme in helping farmers protect their assets (photo credit: Neil Palmer/CIAT).

A new book on markets development for African smallholder farmers has highlighted a pioneering livestock insurance project as a key innovation that could enable African farmers reduce their losses in crop and livestock production.

The new publication: Towards priority actions for market development for African farmers, says lowering production and efficiency losses in agricultural production and improving agricultural markets will, among other actions, ‘level the playing field for smallholder farmers’ and support human and economic development in Africa. The books calls for the ‘right mix’ of policy and investments to not only ‘strengthen African policy expertise’ but also encourage ‘a more diverse array of investments and initiatives, including those initiated by the private sector.’

One such initiative that brings together private and public sector actors to support African agriculture is an Index-Based Livestock Insurance project in Kenya. The project is featured in a chapter in the new book.

Started in 2010 by the International Livestock Research Institute (ILRI) in partnership with UAP insurance, Equity Bank, Cornell University and the Index Insurance Innovation Initiative program at the University of California at Davis, the Index-Based Livestock Insurance project provides livestock insurance against forage losses to over 2500 households in Kenya’s Marsabit District. Freely available satellite imagery is used to assess conditions of pastures. When pasture vegetation is reduced to a level below a specified threshold, the insurance company pays herders who bought insurance. Yearly premiums cost USD100 for 6-8 animals.

Pastoral livestock sectors are at the heart of agricultural markets in Africa. Kenya’s livestock industry, for example, is estimated to be worth about USD800 million per year and produces most of the meat consumed in the country and is critical to the country’s food security. Research by ILRI shows that long-term solutions to food security in Kenya and other countries in the Horn of Africa need to support livestock herding. Pastoral systems are critical for the survival of livelihoods here and offer the most efficient way of managing the region’s large arid and semi-arid lands.

This insurance scheme is currently being piloted in other parts of Kenya and in Ethiopia. In late 2011, 600 livestock keepers insured through the project received insurance payments for vegetation losses arising from the drought that struck the Horn that year. The project is also now making use of mobile phones to widen its impact in remote communities.

Notes:

The new book, which is published by ILRI and the Alliance for a Green Revolution in Africa (AGRA), warns that ‘it will not be enough to simply produce more food from the fields and grazing lands of Africa.’ More effort is needed to create better markets and improve access to these markets’ especially in remote regions.

The book describes the outcomes of an international conference held in Nairobi three years ago that examined the ‘priority actions’ that if taken could speed up the development of African agricultural markets.

Authors of the markets books recommend enhancing markets for poor people, improving market information, lowering transaction costs associated with trading and adding value to farm produce by upgrading value chains and processing mechanisms.

Read more about the book

http://www.ilri.org/ilrinews/index.php/archives/8786

http://marketopportunities.blogspot.com/2012/03/agra-and-ilri-publish-proceedings-of.html

Download the full book or different sections:

http://mahider.ilri.org/handle/10568/16491

Read recent stories on the Index-Based Livestock Insurance Project from ILRI news:

http://www.ilri.org/ilrinews/index.php/archives/8149

http://www.ilri.org/ilrinews/index.php/archives/7348

View short films about the project

http://www.ilri.org/ilrinews/index.php/archives/7374

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Causes of livestock deaths, figure reproduced in ILRI-AGRA book: Towards priority actions for market development for African farmers: Proceedings of an international conference, Nairobi, Kenya,13-15 May 2009. Nairobi (Source of figure: J McPeak, PI Little and C Doss. 2010. Livelihoods in a Risky Environment: Development and Change among East African Pastoralists, Routledge Press, London.)

With food shortages being predicted for dryland communities in both East and West Africa this year, it seems an appropriate time to revisit a major way African experts see that the continent can feed itself: Get Africa’s markets working.

Three years ago, 150 of the world’s leading market experts gathered in Nairobi, Kenya, to document the best ways to drive agricultural market development in sub-Saharan Africa. Both the proceedings of this international conference, Towards Priority Actions for Market Development for African Farmers, held 13–15 May 2009, and a synthesis of its outcomes, Priority Actions for Developing African Agricultural Markets, were published last year by ILRI and the Alliance for a Green Revolution in Africa (AGRA).

The synthesis of this major African markets conference begins by referring to the sudden escalation in food costs that began in late 2010 and persisted into 2011—the second time in only three years that rapid food price rises, caused by a combination of production shortfalls and market failures causing dramatic gaps between supply and demand, rocked developing countries worldwide. With Africa’s long-term struggle with food insecurity, this continent and its economies and people are especially vulnerable to any sudden rise in food prices.

Even before the price shocks of 2008 and 2011, expert opinion had begun to coalesce on the centrality of agriculture in addressing African hunger and poverty. Much of the discussion has focused on increasing agricultural productivity through improved crop varieties and animal breeds, along with increased access to inputs and veterinary services, to boost farm yields. And, indeed, with crop and livestock yields on African farms typically a fraction of that in other regions, there appear to be big opportunities for new breadbaskets and milk sheds emerging across the continent.

But it will not be enough to simply produce more food from Africa’s fields and grazing lands. First, most Africans—including most smallholder, and even subsistence farmers—are net purchasers rather than growers of food.  Also, as more and more people migrate from rural to urban areas, more and more Africans are relying on markets to meet their food needs. And because most rural as well as urban Africans spend a significant proportion of their income on food, even modest increases in food prices can tip millions of them into poverty.

Efficient and vibrant agricultural markets would help. But Africa’s agricultural markets suffer from a dearth of processing and storage facilities, pricing information, smallholder credit, and transport. These create inefficiencies that both raise prices for consumers and restrict sales opportunities for farmers, who are stopped from selling their food surpluses in nearby food-deficit regions.

View or download the full proceedings of this international conference:
Towards Priority Actions for Market Development for African Farmers, 13–15 May 2009, published by ILRI and AGRA, 2011.

and a synthesis of the outcomes of the conference:
Priority Actions for Developing African Agricultural Markets, published by ILRI and AGRA, 2011.

Five recommendations
The following five recommendations, highlighted here for their special pertinence to the drylands of East and West Africa, are presented in case studies published in the ILRI-AGRA markets book:
1 Support village seed trade in semi-arid areas
2 Manage pastoral risk with livestock insurance
3 Employ ICTs to raise smallholder income
4 Embrace informal agro-industry
5 Encourage intra-regional trade

Details of these recommendations follow.
1 Support village seed trade in semi-arid areas
Section 2 of the proceedings volume, Seed and Fertilizer Markets, includes a case study of the utility of Tapping the potential of village markets to supply seed in semi-arid Africa in Mali and Kenya. This paper, written by Melinda Smale, (Oxfam America), Latha Nagarajan, Lamissa Diakité, Patrick Audi (ICRISAT), Mikkel Grum (Bioversity International), Richard Jones (ICRISAT) and Eva Weltzien (ICRISAT), shows that village markets have the potential to supply high-quality pigeon pea and millet seed in semi-arid areas of Kenya and Mali, respectively.

The problem: Periods of seed insecurity occur in remote, semiarid areas when spatially covariate risk of drought is high and many farmers fall short of seed. In these remote environments, seed systems are typically informal, and farmers rely on each other for locally adapted varieties. They are not reliable clients for private seed companies because they purchase seed irregularly. Less improved germplasm has been developed for semiarid environments because of the high costs of breeding and supplying seed—a situation that has worsened with decreasing public funding for agricultural research. In the Mali study, village markets assure a supply of seed of identifiable, locally adapted, genetically diverse varieties as a final recourse in a risky environment where there are as yet no reliable formal channels, for which competitive varieties have not yet been bred, and the potential of agro-dealers to supply certified seed has not yet been exploited. In the Kenya study, well-adapted varieties have been bred, but no formalized channels of seed provision exist for pigeon pea and agro-dealers are active in selling improved varieties of maize and vegetables. In both studies, farm women are major seed trade actors. Interestingly, the characteristics of seed vendors and the locations of seed programs—not the price of seed—tend to determine the quantities of seed sold. The authors argue for strengthening and linking both formal and informal systems for non-hybrid dryland crops.

Some solutions: Several approaches piloted recently are potential candidates for improving the supply of good-quality seed on a large scale.

The West Africa Seed Alliance (WASA) and the Eastern and Southern Africa Seed Alliance (ESASA) work to help local entrepreneurs expand existing seed companies and create new ones.

Since private seed companies do not yet operate in the sorghum- and millet-based systems of the Sahel, where state agencies are underfunded, scientists at the International Crops Research Institute for the Semi-Arid Tropics (lCRISAT) have tested several models that draw on the comparative advantages of farmer organizations.

2 Manage pastoral risk with livestock insurance
Section 3 of the ILRI-AGRA markets proceedings, Strengthening Finance, Insurance and Market Information, has two case studies of particular relevance to the food problems facing the drylands of West and East Africa.

First is a report on Insuring against drought-related livestock mortality: Piloting index-based livestock insurance in northern Kenya, written by ILRI’s Andrew Mude and his partners Sommarat Chantarat, Christopher Barrett, Michael Carter, Munenobu Ikegami and John McPeak.

The problem: Climate extremities pose the greatest risks to agricultural production, with droughts and floods not only causing crop failures but also forage and water scarcity that harms and kills livestock. The number of droughts and floods has risen sharply worldwide in the last decade, with disaster incidence in low-income countries rising at twice the global rate. In much of rural Africa, where water harvesting, irrigation and other similar water management methods are under developed, the impacts of climate change are expected to be especially pernicious.

A solution: In the last several years, new ways to manage weather-related agricultural risk have been developed. Of these, index-based insurance products represent a promising and exciting market-based option for managing climate-related risks faced by poor and remote populations.

This paper describes research to design commercially viable index-based livestock insurance for pastoral populations of northern dryland Kenya, where the risk of drought and drought-related livestock deaths is high.

The analysis indicates a high likelihood of commercial sustainability in the target market and describes events leading up to the pilot launch in Marsabit District in early 2010. The paper concludes that this insurance tool has largely succeeded in helping Marsabit’s livestock herders better manage their risk of drought. Growing interest from both commercial and development partners is helping to take this instrument to other arid and semi-arid districts in Kenya and other countries and regions.

3 Employ ICTs to raise smallholder income
The same Section 3 of the ILRI-AGRA book offers a case study from West Africa, written by Kofi Debrah, coordinator of MISTOWA, supporting the Role of ICT-based management information systems in enhancing smallholder producers’ incomes.

The problem: Smallholder African farmers typically have little access to reliable marketing outlets in which to sell their surplus produce at remunerative prices. Furthermore, their ability to respond quickly to market opportunities is constrained by lack of labour, credit, market information and post-harvest facilities. As a result, West African farmer incomes from agriculture are low and variable and little agricultural produce is traded in the region.

A solution: A project funded by the United States Agency for International Development (USAID), ‘Strengthening Regional Networks of Market Information Systems for Traders’ Organizations in West Africa’ (MISTOWA), helped build a private-public partnership to develop and deploy an ICT-based market information system that improved farmers’ access to markets. Some 12,500 agricultural producers and traders from 15 West African countries benefited from the project, with the beneficiaries reporting USD4,080 in benefits, or USD4.33 per dollar of donor funds invested.

Evidence from the beneficiaries suggests that access to real-time market information provides smallholder farmers with incentives for investing in agriculture.

4 Embrace informal agro-industry
Section 4 of the markets book, High-Value Commodities and Agroprocessing, includes a paper by ILRI scientists Amos Omore and Derek Baker on Integrating informal actors into the formal dairy industry in Kenya through training and certification.

The problem:  Throughout the developing world, most food produced by smallholder farmers is delivered and processed by an ‘informal’ agro-industry, which is the principal source of food for most poor consumers and a major source of employment of poor people as traders and service providers. In spite of this, agro-industrial policy has historically tended to displace this informal sector with a formal one featuring relatively large-scale and capital-intensive production and marketing. Other policy concerns, such as public health and municipal planning, have further selected against informal agribusiness, particularly livestock’s informal agro-industry.

A solution: This paper presents a case study of interventions in the Kenyan informal milk industry that led to changes in dairy policy that in turn reduced poverty levels in the East African country. The paper identifies the informal agribusiness sector as fertile ground for alleviating poverty and supporting vulnerable groups.

Policies do well to embrace informal agro-industry, the research indicates, while helping it transform itself into a more formal industry.

The ILRI scientists show that the informal dairy industry can respond well to consumer demand for quality, particularly for safe food, and, when unjustified policy barriers are removed, can compete well when price alone becomes the basis of competition. These achievements support much conjecture in the development literature about the centrality of markets, and access to them, for pro-poor development and the idea that pro-poor markets rely heavily on policy and institutional change. The lessons of this project are being transferred to other informal commodity sectors (goats, beef cattle and pigs) in Africa and Asia and the policy changes seen in the Kenya dairy project have been adopted across the East African region.

5 Encourage intra-regional trade
Section 6 of the markets book, Encouraging Regional Trade, includes a paper on The impact of non-tariff barriers on maize and beef trade in East Africa. The paper is written by Joseph Karugia (ILRI and ReSAKSS-ECA), Julliet Wanjiku (ILRI and ReSAKSS-ECA), Jonathan Nzuma, Sika Gbegbelegbe, Eric Macharia, Stella Massawe, Ade Freeman, Michael Waithaka and Simeon Kaitibie.

The problem: In 2004, the East African Community member states established an East African Community Customs Union, committing them, among other things, to eliminate non-tariff barriers to facilitate increased trade and investment flows between member states and to create a large market for East African people. However, several such trade barriers are still applied by member states and there exists little reliable information about how, and how much, these non-tariff barriers are actually hurting regional trade. This study identified the existing non-tariff barriers on the trade of maize and beef in East Africa and quantified their impacts on trade and citizen welfare in the region. The study found that the main types of non-tariff barriers within the three founding members of the East African Community (Kenya, Tanzania and Uganda) are similar and include administrative requirements, taxes/duties, roadblocks, customs barriers, weighbridges, licensing, corruption and transiting.

Some solutions: The study recommends taking a regional approach to exploit economies of scale by eliminating non-tariff barriers, since they are similar across the member countries and across commodities. Specific policy recommendations include streamlining administrative procedures at border points to improve efficiency; speeding up implementation of procedures at point of origin and at the border points; and implementing monitoring systems to provide feedback to relevant authorities on progress in removing unnecessary barriers to trade within East and Central Africa. The welfare analysis of the study shows that abolishment or reduction of the existing non-tariff barriers in maize and beef trade increases trade flows of maize and beef within the East African Community, with Kenya importing more maize from both Uganda and Tanzania and Uganda exporting more beef to Kenya and Tanzania. As a result, positive net welfare gains are attained for the entire East African Community maize and beef sub-sectors.

These findings give compelling evidence in support of the elimination of non-tariff barriers within the East African Community Customs Union.

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ILRI director for institutional planning Shirley Tarawali (photo credit: ILRI/Stevie Mann).

Shirley Tarawali, director for institutional planning at the International Livestock Research Institute (ILRI), gave a slide presentation today (22 Feb 2012) titled ‘Options for enhancing resilience in pastoral systems: The case for novel livestock insurance’, at a Brussels Briefing onNew challenges and opportunities for pastoralism in ACP [Africa, Caribbean and the Pacific] countries.

Rangelands, Tarawali told the participants at this policy briefing, have fewer than 20 persons per sq km and a growing period of less than 60 days/annum, making crop production impossible. Constituting the largest land-use system globally, rangelands cover some 35 million sq km and support almost 50% of the world’s livestock. The 200 million pastoralists who live on rangelands are the environmental stewards of these vast resources, but many of them are among the world’s poorest, Tarawali reported, living on less than $2 a day. Subject to the vagaries of climate variability, food insecurity, poor markets and infrastructure, animal diseases, under-investment and conflicts over natural resources, pastoralists are among the world’s most vulnerable peoples.

A key development challenge, Tarawali said, is how to help pastoral communities increase their adaptive capacity and resilience in the face of shocks, such as the food crisis that followed a great drought in the Horn of Africa last year. At the risk of over-simplifying matters, she said, two main strategies can improve pastoral resilience: (1) help herders better secure the assets on which they depend—their animals and other natural resources (land, water, biodiversity), and (2) help them diversify their income sources, whether through better livestock marketing, sales of other rangeland products, or schemes that pay pastoral herders for ecosystem services and environmental stewardship.

A blind man awaits his pay out by a livestock insurance scheme being trialled in Marsabit, northern Kenya (photo by Jeff Haskins on Flickr).

Empirical studies of almost 1,000 families in the Marsabit region of northern Kenya, Tarawali said, show that pastoralists rely on their animals for at least 40% of their income, with loss of animals to drought being a major reason that pastoralists fall into poverty. ILRI and partners have tested an innovative insurance scheme designed to protect pastoralists against drought-related livestock deaths. Based on satellite data that determines vegetative cover, and thus forage availability, this insurance makes pay outs when the level of forage scarcity is predicted to cause a certain percentage of livestock deaths in an area. The scheme, which involves commercial insurance companies, has been piloted in northern Kenya since January 2010.

The pilot shows that it’s feasible to design index-based livestock insurance contracts attractive to both pastoralists and commercial institutions. To date, more than 3,000 pastoralists have participated in this novel insurance scheme, and more than 600 of them received indemnity payments in October 2011, following the drought in the Horn that year. Creative education tools have played an important role in helping these never-before-insured pastoral communities to grasp how the insurance works.

Taking the pilot scheme to scale, Tarawali said, will require making the scheme more cost-effective (perhaps through use of ICTs both to collect premiums and to make indemnity payments) and better aligning the different incentives of the partners, with the private (insurance) companies stressing copyright and profit and the public institutions (such as ILRI) aiming to enhance pastoral livelihoods.

Despite these challenges, she reported that this insurance tool has potential to help development agencies and governments shift their focus from making the right responses to droughts when droughts occur to investing in pastoral development on an on-going basis, with livestock insurance acting as a social safety net, securing the productive assets of these vulnerable populations in times of hardship. And she reminded her audience that most countries make significant public investments in agricultural insurance programs (US farmers pay only 40% of the actuarially fair premium and index-linked insurance in India is subsidized by some 50%). The index-based livestock insurance schemes now being piloted in Kenya and about to start in Ethiopia include rigorous evaluations of their impacts on pastoral welfare, which should help governments to efficiently target public investments in livestock insurance.

With this demonstration that index-based livestock insurance mitigates both pastoral vulnerability to drought and ad hoc coping strategies, Tarawali argued, it’s an appropriate time to consider redeploying some of the significant public funds spent in responding to droughts in insurance subsidy programs that keep insurance premiums affordable by poor pastoralists.

View the slide presentation: Options for enhancing resilience in pastoral systems:

For more information, visit the websites of the Index-based Livestock Insurance Project, www.ilri.org/ibli  and ILRI, www.ilri.org

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Livestock Insurance for Pastoralists in Kenya
January 2010 saw the launch of the world’s first livestock insurance for remote African pastoralists as a result of years of research.
Running time: 2:49

Development of World’s First Index-Based Livestock Insurance for African Pastoralists Herders
In Kenya’s drylands, drought has always been the greatest hazard faced by livestock herding families. Modern pressures are making this situation worse.This film tells the story of a research project started in 2007, which this year introduced a new form of insurance to remote herding peoples who had never been provided with insurance before. This new insurance product has potential to protect many other herding communities throughout Africa.
Running time: 12.36.

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ILRI director general Jimmy Smith speaks to residents of Marsabit, in northern Kenya, where a livestock insurance scheme has made its first payouts to small livestock keepers following a prolonged drought in the Horn of Africa (photo credit: Neil Palmer/CIAT).

Jimmy Smith, director general of the International Livestock Research Institute, made the following remarks on the occasion of the first payouts of index-based livestock insurance policies ever made to livestock herders in Africa in a region that has been afflicted by the drought that has reduced herds in the drylands of the Horn by a third.

Inhabitants of Marsabit town, in northern Kenya, attend a special event marking the first payouts of  a livestock insurance scheme to small-scale livestock keepers following a prolonged drought in the Horn of Africa (photo credit: Neil Palmer/CIAT).

‘Today ILRI’s Index-Based Livestock Insurance (IBLI) project provides 650 livestock herders in Kenya’s remote Marsabit District with the very first payments of index-based livestock insurance claims ever made on this continent.

‘That makes this an important as well as historic moment.

Members of the Marsabit community listen to speakers at the launch of the first payouts of livestock insurance in Africa (photo credit: Neil Palmer/CIAT).

‘The success of any insurance scheme depends on its clients being confident that payments will be made if and when an insured event occurs. I hear that many have been reluctant to purchase the livestock insurance policies being offered to Marsabit’s livestock keepers in August and September of this year [2011] because the herders first wanted to be assured that this insurance product works and—in this time of great drought and livestock losses here and elsewhere in the Horn of Africa—if it will payout. Now that the appropriate payments are being made and in a timely manner, we hope we have earned the trust of people here, trust that will generate more widespread awareness and interest in this livestock insurance product.

Women of the Marsabit community listen to speakers at the launch of the first payouts of livestock insurance in Africa (photo credit: Neil Palmer/CIAT).

‘We are celebrating today not only the first payouts but also that the livestock index that predicts mortality in this region seems to be working well; several of our on-the-ground partners in Marsabit are in agreement with the figures. Our relatively inexpensive way of estimating livestock deaths in a time of drought and forage loss appears to be reliable and could now open the door to making livestock insurance widely available in Marsabit and similar areas in Kenya’s northern drylands, which are home to many of its pastoral peoples.

At a village meeting in Dirib Gombo, farmers who took out livestock insurance hear they are to receive their first payout after a prolonged drought in the region (photo credit: Neil Palmer/CIAT).

‘For all its initial success, this insurance project remains a work in progress. We’re aware of the challenges of raising awareness of the program in the more distant areas of Marsabit and making sales across the entire district. And even as we trust that those who purchased this livestock insurance will receive their payments in the shortest time possible, we recognize that many clients will have to be paid manually, a process that involves costly driving to areas as far as Loiyangalani and Illeret, where some pastoralists also bought contracts. That said, over the last three insurance sales periods since January 2010, Equity Bank’s Point of Sale systems and UAP’s telephone scanners have made the process more efficient. Over the next several seasons, on-going efforts will continue to improve the technology platforms delivering IBLI services, making them increasingly more cost-effective and accessible.

At a village meeting in Dirib Gombo, officials prepare to make the first insurance payouts after a prolonged drought in the region (photo credit: Neil Palmer/CIAT).

‘The most important sign of success is the response of the client. So even as payments are being made, we at ILRI want to know what impact the payments are having and how valuable the insurance product is. You will see the ILRI team in this area conducting research to understand how IBLI is benefiting the community and those households that bought livestock insurance. We worked with members of the community to design and develop this product, and we are keen to receive your suggestions about ways to improve it.

At a village meeting in Dirib Gombo, farmers who took out livestock insurance receive their first payout after a prolonged drought in the region (photo credit: Neil Palmer/CIAT).

‘‘A project such as this is necessarily a product of collaboration. ILRI and our commercial partners Equity Bank and UAP Insurance—those who actually market and sell the product—are quite visible, but there are several others that must be recognized. Cornell University and the Index Insurance Innovation Initiative (I4) based out of the University of California at Davis have been instrumental in the development of the IBLI product and supporting the research agenda behind it. Closer to the ground, members of the Marsabit District Steering Group have offered invaluable support and advice to the project team, as has Food for the Hungry International. The project has also received tremendous support from the Ministry of the Development of Northern Kenya and the Ministry of Livestock and the Provincial Administration, from the District Commissioner to chiefs and counsellors across Marsabit. Finally there are the hundreds of young men and women across all divisions of Marsabit who have worked tirelessly conducting surveys and product education and extension.

Leader of the Index-Based Livestock Insurance Project, ILRI’s Andrew Mude (right), answers a questions from the Marsabit community (photo credit: Neil Palmer/CIAT).

‘We’re now working to see if IBLI can be sustained by commercial partners such as Equity Bank, UAP and others that may be interested. Currently, however, the research, design and implementation of the IBLI project has been funded by numerous donors who believe in its potential. For this we must thank the European Union, the Global Index Insurance Facility, the Microinsurance Facility, the World Bank and the United States Agency for International Development.  The British Government, through UKAID, has been one of the largest supporters of the project and, together with the European Union, will be funding the second phase of scaling up.’

A farmer awaits a livestock insurance payout following a village meeting in Dirib Gombo, near the northern Kenyan town of Marsabit; some farmers in the village took out livestock insurance, and this year are receiving the first payouts after a prolonged drought in the region (photo credit: Neil Palmer/CIAT).

One of the many head of cattle that perished for lack of fodder in the drought that dried up the rangelands of Kenya’s Marsabit District this year (photo credit: Neil Palmer/CIAT).

Read a related story on this ILRI News Blog: Herders in drought-stricken northern Kenya get first livestock insurance payments

Editor’s note, 26 Oct 2011: The original title of this blog post, ‘Livestock director and partners launch first-ever livestock insurance payments in Africa,’ was changed to ‘Livestock director and partners launch first-ever index-based livestock insurance payments in Africa;’ other forms of livestock insurance (not index-based) have been available in other parts of Africa. Two similar statements in the body of the blog were similarly corrected.

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Pastoralists from Marsabit, in Kenya’s remote northern drylands, play a game crafted by ILRI scientists to simulate livestock losses that could occur due to drought, in which the local herding communities are educated about how index-based livestock insurance works (image credit: ILRI).

As livestock deaths mount, a small group of herders in Kenya’s Marsabit District is first to benefit from program that tracks forage conditions via satellite.

In the midst of a drought-induced food crisis affecting millions in the Horn of Africa, an innovative insurance program for poor livestock keepers is making its first payouts today, providing compensation for some 650 insured herders in northern Kenya’s vast Marsabit District who have lost up to a third of their animals.

Known as index-based livestock insurance, or IBLI, payouts are triggered when satellite images show that grazing lands in the region have deteriorated to the point that herders are expected to be losing more than 15% of their herd. The current readings for which indemnities are now being paid show that between 18 and 33% of livestock have been lost to drought this season.

‘It’s terrible that we are seeing this level of loss, but gratifying that the policies are doing what they are supposed to do, which is to help herders avert disaster when weather conditions dry up pasture lands and animals begin to perish,’ said Isaac Magina, head of agriculture insurance at UAP Insurance Ltd.

‘When you look at a 33% loss, that is a significant portion of the asset base of any business and it would be difficult to survive without insurance,’ added Magina.

The insurance project was developed in partnership by the Nairobi-based International Livestock Research Institute (ILRI), Cornell University and the Index Insurance Innovation Initiative program at the University of California at Davis. Commercial partners Equity Bank and UAP Insurance Ltd implement the program. The IBLI project is funded by the United States Agency for International Development, the European Union, the British Government, the World Bank, the Microinsurance Facility and the Global Index Insurance Facility.

The Marsabit District alone is home to some 86 thousand cattle and 2 million goats and sheep that generate millions of dollars in milk and other products and serve as the main source of sustenance and income. ILRI estimates that up to one-third of all livestock in the region have perished during the current drought.

In East Africa, an estimated 70 million people live in the drylands, and many of them are herders. In Kenya, the value of the pastoral livestock sector is estimated to be worth USD800 million. And the Intergovernmental Authority on Development in Eastern Africa, which takes a regional approach to combating drought in six countries of the Horn, estimates that over 90% of the meat consumed in East Africa comes from pastoral herds.

Under the terms of the policy, insured herders are compensated for any losses above 15%, with the 15% threshold acting as a sort of deductible. For example, a cattle herder who lives in an area with a livestock mortality rate of 33% receives a payout covering 18% of his or her animals. With cattle valued at about 15,000 Kenyan shillings (Ksh) per head (about USD150), an insurance policy covering 10 animals, or Kshs150,000 in cattle, would pay out at about Kshs27,000 (about USD270).

When the 15% deductible is factored in, compensation ranges from 3% in areas where the drought has been more moderate to 18% in the areas where herders were hit particularly hard. But in an indication of the severity of the drought, all of the areas where the policies were sold have exceeded the 15%mortality threshold that triggers a payout. Thus far, the policies cover about 1,100 animals—mostly cattle, but some goats and sheep and a few camels as well.

The payments are being dispatched in the middle of a humanitarian crisis endangering 12 million people in the Horn that is prompting a call for new ways to manage food security risks in East Africa’s arid drylands. For example, a recent report from ILRI has found that the pastoral approach to livestock production, in which herders make do with marginal lands by regularly moving their herds, could be very effective at averting weather-related food shortages. ILRI experts say that in arid and semi-arid regions, keeping livestock can be a more effective coping strategy than cultivating crops—if herders have options for reducing their vulnerability to drought.

‘Drought insurance is one important way to help livestock keepers maintain food security even in very harsh environments,’ said Andrew Mude, the IBLI project leader at ILRI. ‘Insurance is not by itself sufficient,’ he added, ‘But if it is accompanied by other risk-reducing strategies, such as better access to grazing lands and watering areas, then the pastoralist approach, which some people dismiss as a backward lifestyle of the past, emerges as a very effective way to meet future food needs.’

Mude said that it is too early to tell just how the payouts from the policies will affect food security and other welfare indicators. For example, it’s not yet clear how many herders will use the compensation to replace animals lost to the drought. But Mude said one major success thus far is that the livestock mortality index that is at the heart of the program appears to be working. The fatality rate predicted by the satellite assessments of forage loss is tracking very closely surveys of animal deaths on the ground.

That’s crucial because using freely available satellite images of pasture lands to accurately predict animal deaths overcomes a major barrier that has bedeviled past efforts to provide livestock insurance in poor regions: the prohibitively high costs and logistics of confirming animal deaths in herds that roam across vast distances in extremely remote areas.

‘This is all still a work in progress,’ said Jimmy Smith, director general of ILRI. ‘But the fact that our relatively inexpensive approach to estimating livestock deaths seems to be accurate could open the door to making livestock insurance widely available in many parts of Africa.’

Going forward, experts believe a key issue will be whether livestock insurance in East Africa would be commercially viable by itself or whether its ability to protect herders from the impact of prolonged drought might justify some level of financial support from governments or donors, as agricultural insurance programs in Western countries often do.

‘This is asset insurance for animals that are the centerpiece of livelihoods, providing a stream of income and nutrition for years and years,’ said Mude. ‘The investment in insurance=based asset safety nets protecting these herds could have a more cost-effective welfare impact over the longer term than other forms of response such a food and cash assistance.’

‘This insurance scheme is a great example of how partnerships with the private sector can lift people out of poverty and provide long-term solutions to food crises,’ said Andrew Mitchell, the British international development secretary.

‘To many farmers, losing their cattle means losing everything, as they are not just a source of income but are their only source of food. Support from Britain and others means that more than 600 herders in Northern Kenya can buy more cattle to replace those they have lost. This means they are better able to cope with this and future devastating droughts.’

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ILRI’s Bruce Scott delivers a talk at an expert consultation on livestock systems in the Horn of Africa (photo credit: ILRI/Susan MacMillan).

Bruce Scott, acting director general of the International Livestock Research Institute (ILRI), delivered the following talk at the opening of an expert consultation convened by the Africa Union-Interafrican Bureau for Animal Resources (AU-IBAR), on ‘Interventions for sustainable livestock systems in the Horn of Africa’, held at ILRI’s campus in Nairobi, Kenya, on 2 September 2011.

‘I thank you all for accepting the invitation from the Africa Union to attend this expert consultation.

‘I thank the Africa Union Commission (AUC) and AU-IBAR for convening this meeting, which ILRI is pleased to host.

‘I especially appreciate each of you agreeing to attend this meeting at this time of crisis, where there are so many activities competing for your precious time. We are confident that your presence will help us identify steps towards a more holistic and practical approach for addressing livestock issues in the Horn.

‘I am delighted to welcome His Excellency Erasmus Mwancha, deputy chairperson of the Africa Union Commission, who has kindly agreed to officially open this consultation.

‘I also take pleasure in acknowledging the presence of the chief executive officer of the CGIAR Consortium of International Agricultural Research Centers, Lloyd Le Page. Yesterday (Thursday, 1 September), Lloyd convened a CGIAR media briefing and learning event also here at ILRI, and also on the crisis in the Horn, looking at the most promising agricultural research inputs for addressing these issues in future.

‘The consensus of the Consortium’s learning event was that we need greater investment in agricultural development, greater support for agricultural research, and greater cooperation between research, government, private sector and development actors. These can spread the adoption of innovations by farmers and herders, helping millions of food producers in the Horn of Africa, who are now facing the severest drought in this region in the last six decades.

‘The CGIAR and partner experts gathered yesterday called for a ‘matching of investments in infrastructure development with investments in knowledge’ to get more research into use.

‘We are all here at today’s Africa Union meeting because of our commitment to finding sustainable livestock-based solutions for this region’s food production problems.

‘I’d like to take a minute to set some context for this consultation.

‘Rangelands cover about one-half of the landmass in Africa. In Kenya, about 80 per cent of the landmass comprises arid and semi-arid lands. These drylands can be subdivided into the wetter drylands and the drier drylands. Most of the Horn now afflicted by drought is made up of the drier drylands. I caution us to keep in mind that food production options appropriate for the wetter drylands often are inappropriate for the drier drylands.

‘Droughts have frequented the Horn of Africa for centuries. But in recent decades they have become more frequent and the rainfall has become more variable from year to year. Both of these changes are increasing the vulnerability of the communities that live in these lands.

‘As you know, livestock are a central source of livelihoods in this region and the major way that pastoralists generate income and build their ‘asset base’. A remarkable 70 per cent of all the beef produced in Kenya comes from the arid and semi-arid regions of the country.

‘The Horn of Africa experiences bimodal rainfall, which occurs in only a few regions on earth. That means that the little rain that does fall in these drylands does so in two rather than one growing season, which of course reduces the low levels of annual rainfall available for either of the two annual growing seasons. While this is bad news for cropping, it serves animal production particularly well, with pastures renewed twice a year. Furthermore, the unpredictability of rainfall here is often so great as to allow only one crop every third, fourth or fifth season, which makes crop production unviable without irrigation of some sort.

‘Africa’s dry rangelands are, in fact, productive, and potentially very productive. They are good filtres of water, for example, with some parts of the continent’s drylands, such as in West Africa, having sizable aquifers below their surface (these aquifers, unfortunately, are much smaller in the Horn). The drylands are home to much of the continent’s wildlife diversity. The drylands sequester carbon, and carbon credits might one day provide the local populations with new income streams. And livestock enterprises are not only a major source of income for the peoples of the Horn, they also provide up to 50 per cent of the agricultural gross domestic product of these countries.

‘In spite of all this, the Horn’s drylands have been badly neglected. Governments have neither significantly invested in nor developed these drylands, whose people (pastoral livestock herders) have been marginalized for decades. Donor investments in this region have fallen drastically in the recent past and even ILRI has reduced its attention to these drylands since the late 1990s.

‘Meanwhile, over the last 30 years, more and more people and more and more animals have inhabited these fragile ecosystems, fragmenting the rangelands and reducing the mobility of the herders and their stock in seasonal search of new pasture. Pastoral mobility has also been restricted by governance issues, insecurity, and conflicts over natural resources. And as we well know, Somalia has been a non-state since 1990 and many of the region’s commercial livestock markets are functioning badly or not at all.

‘It is clear to us that the traditional way of managing livestock will need to change to adapt to changes in this region and that we’ll need to identify ways to help the Horn’s pastoralists diversify their incomes and livelihoods.

‘ILRI is investigating promising options for this region’s livestock herders, including better land-use policies, well-functioning livestock markets, pastoral livestock insurance and schemes to pay pastoral herders for their environmental services, such as sequestering carbon, filtering water and conserving wildlife.

‘It’s essential that this expert consultation identifies opportunities to ensure a sustainable future for this sub-region, which is changing rapidly under both external and internal pressures. This meeting should provide a framework for collecting some of our best professional advice on new opportunities for viable livestock enterprises for the future.’

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ILRI scientist Andrew Mude leads a project introducing insurance to the pastoralist communities of Kenya’s remote northern Marsabit District, which is also where Mude is originally from (photo credit: ILRI).

Last night (24 Aug 2011), ABN’s South African correspondent Lerato Mbele interviewed Andrew Mude, leader of an Index-Based Livestock Insurance Project at the International Livestock Research Institute (ILRI) in Kenya.

Before Mude went to the studio in Nairobi to do this live television news interview, he sat down with ILRI staff to prepare what he wanted to say. Here’s a summary of what he had on his mind.

Kenya’s drylands are big; they make up 80 per cent of the Kenya’s total area, in which some 10 million people raise 70 per cent of the country’s livestock.

The value of the pastoral livestock sector, which includes meat, milk, and other products from these animals, is estimated to be worth US$800 million annually. And roughly 90 per cent of the meat consumed in East Africa comes from pastoral herds.

Research confirms that the pastoral livestock sector is not only productive and critical to Kenya’s food security, but also an optimal way to manage and maintain drylands and the livelihoods of those who live off them.

At a time when the government and donors are looking for long-term solutions to addressing food security, our research suggests that herding makes better economic sense than crop agriculture in many of these arid and semi-arid lands. Supporting semi-nomadic livestock herding communities with timely interventions before a crisis hits can help people cope the next time drought threatens.

Recommending that livestock herders switch to farming crops is simply unrealistic for most of the people inhabiting this region’s great drylands; building vast irrigation systems here is simply not feasible in both economic and ecological terms.

Droughts have always been part of life for people in drylands but these droughts are now coming more frequently and affecting many more people across rangelands that are becoming more and more fragmented. Farmers and livestock herders need options and support to cope with recurring drought, particularly in the face of other kinds of climate change. Luckily, options exist.

For example, my organization, ILRI, based here in Nairobi, is working with UAP Insurance, Equity Bank, and SwissRE to roll out an insurance program for several thousand livestock keepers in Marsabit District to protect them against drought.

Standard types of insurance are not feasible for remote livestock herders such as those in Marsabit, where throngs of officials would be needed to verify livestock deaths before insurance companies would make pay outs to the insured. So we came up with a model that makes use of satellite data showing the state of a region’s vegetation. When the satellite data show that the available forage drops below a given threshold, where one would expect most livestock to perish, all insurance policyholders are paid, whether or not their animals died. With tweaking to cater for various local conditions and lots of training to educate communities that have never before had insurance schemes available to them, these kinds of programs could be extended across the drylands of Africa.

Watch this 7-minute television news interview of ILRI’s Mude, who argues that pastoralism is a system that evolved to take advantage of arid and semi-arid lands, such as those suffering drought now in the Horn of Africa: CNBC Africa: Investing in pastoralism with Andrew Mude, 24 Aug 2011.

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ILRI researcher holds discussions with local pastoral herders in Marsabit, in Kenya’s northern drylands, for ILRI’s Index-based Livestock Insurance project (photo credit: ILRI/Mude).

SciDevNet reports that, due to the great drought engulfing the Horn of Africa, an ‘index-based’ livestock insurance scheme for herders in Kenya’s remote Marsabit District may make payments to those who had earlier purchased the insurance. This is the first time insurance has ever been offered Kenya’s remote livestock herders, and these would be the first payments for those who have insured their stock.

What is ‘index-based’ livestock insurance?
Index-based livestock insurance makes the risk-management benefits of insurance available to poor and remote clients. The product being piloted in Marsabit District by the International Livestock Research Institute (ILRI) and other partners, including the private sector, aims to provide compensation to insured pastoralists in the event of livestock losses due to severe forage scarcity. Incorporating remotely-sensed vegetation data in its design, delivered via mobile ICT-based transactions platforms, and with experimental extension methods used to educate the remote pastoral herders, this insurance product boasts many firsts in product development. Payments are triggered when severe drought makes forage scarce over a long period and when it can be predicted from that that more than 15 per cent of livestock in the area will have died of starvation.

SciDevNet reports the following.
‘Insurers will assess in October whether Kenyan farmers signed up to the Index-Based Livestock Insurance scheme will receive their first payment, after the worst drought in the region for 60 years.

‘The scheme, which has been piloted in northern Kenya since early 2010, uses freely-available 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 purchased the product since its inception, paying a yearly premium of up to US$100 for 6–8 animals. . . .

‘”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 the International Livestock Research Institute (ILRI), Kenya, which implemented the scheme.

‘The scheme will be extended to southern Ethiopia in February 2012 to help mitigate the effects of drought. It will initially target 2,700 pastoralists.

The aim is to find a viable insurance tool that could cushion pastoralists from heavy losses experienced during droughts, according to Wandera.’

‘ILRI will partner with the Nyala Insurance s.c. company in Ethiopia, with support from the International Food Policy Research Institute, the US international development agency USAID and the World Bank. . . .’

The technical partners in this project
Cornell University
Index Insurance Innovation Initiative
Syracuse University (Maxwell School)
University of Wisconsin (BASIS Research Program)

The implementing partners
Equity Insurance Agency
UAP Insurance Limited
Financial Sector Deepening (FSD) Kenya
Kenya Meteorological Department
Kenya Ministry of Development of Northen Kenya and other Arid Lands
Kenya Ministry of Livestock

The donor agencies
UK Department for International Development (DFID)
United States Agency for International Development (USAID)
World Bank

Read the whole article at SciDevNet: Kenyan farmers may soon receive first drought payout, 15 Aug 2011.

For more information, visit the blog of ILRI’s Index-Based Livestock Insurance project.

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Mobile phone with money in Kenya (photo on Flicker by whiteafrican).

Kenya, which in recent years has built a reputation as an innovation hub—a nerve centre for young mobile and web developers—is making use of its new media technologies and platforms for dealing with an age-old problem of biblical proportions and resonance: a current drought and starvation now ravaging the Horn of Africa, including Kenya’s northern frontier districts of Turkana, Marsabit, Wajir and Mandera.

With its vibrant cell phone infrastructure and use, Kenya is home to illustrious tech start ups such as Ushahidi, a ‘disruptive’ non-profit tech company (‘ushahidi’ means ‘testimony’ in Swahili) offering open-source software and crowd-sourcing tools to better inform responses to crises; the iHub, a new nerve centre for mobile and web developers; M-PESA, a mobile money transfer system readily available to the poor and initiated by Kenya’s big mobile company Safaricom; Virtual City, which is producing software for small business in this poor country;  and iCow, a mobile application that allows farmers to monitor the fertility cycles of their animals and pinpoint breeding windows.

Kenya’s new generation of tech luminaries includes Erik Herman, creator of Ushahidi who was raised and is now living in Kenya and writes the popular White African blog; Ory Okolloh, Kenyan lawyer activist and Ted talker and Ushahidi co-founder and new Google Africa policy and government relations manager; John Waibochi of Virtual City, a Kenyan mobile mega-entrepreneur whose company is pioneering mobile business management solutions for small traders and won the 2010 Nokia Innovation Challenge Award; Su Kahumbu Stephanou, of Green Dreams Ltd., who won first prize in an Apps4Africa Competition in 2010 and invented iCow; and Andrew Mude, a Kenyan from the country’s pastoral Marsabit District who is leading research on the first livestock insurance product made readily available to, and affordable by, Kenya’s remote livestock herders and who this year won Kenya’s inaugural Vision 2030 ICT Innovation Award.

But can Kenyans really use their new m- and e-philanthropy platforms to help rescue starving desert nomads in the northern frontier? Watch this space.

Below is some of the news coming out this week on how regular, tech-savvy, Kenyans are making use of the new mobile and web technologies to help their countrymen and women in Kenya’s remote northern drylands feed themselves in a great multi-year drought that has desiccated the pastoral lands, withering crops, finishing forage and killing camels, donkeys, goats, sheep and cattle alike.

Safaricom Foundation press release, 27 Jul 2011
‘The Safaricom Foundation and KCB [Kenya Commercial Bank] Foundation today led a coalition of corporate Kenya and media in launching a massive fund-raising effort aimed at reversing the suffering of an estimated 3.5 million Kenyans faced with starvation. Dubbed KENYANS for KENYA and intended to raise over Sh500 million, in four weeks. The initiative has brought together a number of organizations among them Safaricom Foundation, KCB Foundation and the country’s leading media houses operating under the umbrella of the Media Owners Association (MOA). The effort will be administered by relief agency Kenya Red Cross Society. . . . KENYANS for KENYA, touted as the biggest such effort ever mounted in Kenya, shall be co-ordinated on several fronts, including pledges from corporate society that will be made public during a meeting set for next Friday, August 5 at Serena Hotel. Also key to the campaign is the use of M-PESA, Safaricom’s money transfer service to receive donations. This will ensure that even the smallest donation (as low as Sh10) is harnessed, as this will go a long way in improving the situation of millions of Kenyans currently staring starvation and death in the eye. Donations can be sent to the M-PESA PayBill number 111111 at no charge as this has been waived. Donations can also be sent to account number 11 33 33 33 38 at KCB.

Capital FM News, 28 Jul 2011
‘The Kenyan media has already joined hands with the corporate sector to raise Sh500 million in the next four weeks for drought stricken Kenyans. The initiative dubbed Kenyans4Kenya which was launched on Wednesday has brought together Media Owners Association, Safaricom and KCB foundations among other organisations. Kenya Red Cross Society will manage the fund that will be used to purchase food relief to the drought stricken Kenyans. Donations can be sent through the M-PESA Pay Bill number 111 111 at no charge or account number 11 33 33 33 38 at KCB.’

Mashable, 30 Jul 2011
‘Like most major international crises today, Twitter is the go-to forum for Africans to discuss the situation on the ground. Users are asking for the international community to send aid to the starving region of the world’s poorest continent. The International Business Times reported twenty tweets per minute relate to the famine in East Africa, using the hashtags #HornOfAfrica, #Famine, #Drought, #Somalia, #Kenya and #Ethiopia. Groups such as Kenyans4Kenya, a campaign of Kenyans helping other Kenyans, have started to respond to calls.’

‘Kenyans4Kenya’ initiative on Facebook, noon 30 Jul 2011
As at 10:00am ksh we are at 47,502,973 can we hit the 50M mark before noon? yes we can. let’s do it.
about an hour ago via Facebook Mobile
Gladys Kamau Nimehesabika! BN78KK393! GO KENYANS!
I knew we could do without the politiians….infact they are an expense to us!
Polly Mbugua Now they must be scared – all attention has shifted to this noble act…..Can we continue giving them a black out? Media houses you can be again of great help.’

Kenya Red Cross Society on Facebook: 29 Jul 2011
‘HI GOOD PEOPLE, THANK YOU FOR CONTRIBUTING TOWARDS KENYANS FOR KENYA & FEEDKENYA INITIATIVES. . . .  THERE ARE ONLY TWO INITIATIVES THAT KRCS IS RUNNING- THE MPESA NO FOR K4K IS 111111 AND FEEDKE IS 10000. THE KCB ACCOUNT IS 1133333338 ANY BRANCH. BY KRCS PR AND COMMUNICATIONS MANAGER, NELLY MULUKA. LET US CONTINUE ALLEVIATE HUMAN SUFFERING.’

Blog by Ahmed Salim: #FEEDKE social media campaign, 10 DAYS and Counting, 29 Jul 2011
After 10 days of full dedication to an initiative I started off with just one tweet has taught me a lot. . . . A campaign that is ongoing for more than a week with no offline help makes me proud to say Social Media is our future. . . . Do you realize for the 1st time Kenyans Online all over the world are doing something as ONE with ONE common goal?? The support im getting online on all social platforms just boosts my energy to ask for one more tweet – and you know what? WE WILL MAKE IT HAPPEN. I am NOT stopping as yet – together we will Feed Kenya. . . . Till date of this post we have raised Kshs.624,602.20/= from 1130 donors via Online, Mpesa and Airtel. We are all Kenyans and let’s keep everything else behind us today and stand proud to do something for this country – lets Unite and speak one language. . . . Kenyans WE can DO this together – We can show our strength as ONE – We can make a difference just as an individual. Your say counts, your participation counts, your heart counts and more your ACTION counts.
Sacrifice A Meal Today; Take pride, stand for Kenya and support FeedKE:
M-Pesa Paybill to ‘10,000’ Acc ‘feedke’
On Airtel nickname ‘REDCROSS’ reference ‘feedke’
Online: www.kenyaredcross.org
Ps: all funds are collected directly by the Kenya Red Cross Society and a report is available on request. . . .
My name is Ahmed Salim and I’m a Kenyan!!
May God Bless YOU and GOD BLESS KENYA!!!!

Magu Ngumo in an opinion piece in Kenya’s Saturday Nation newspaper, 30 Jul 2011
‘. . . Politics has overtaken agriculture as the mainstay of our national life. Even MPs from the famine-stricken parts of Kenya are not coming out boldly to rally support from the entire nation for their dying kith and kin. As recently observed by the world respected Special Adviser to the United Nations, Prof Jeffrey Sachs, Kenya has all the time ignored the early warning signs for its recurrent drought and resultant famine. How can the nation abdicate its cardinal responsibility of feeding its people and wait for the rest of the world to feed it? . . . The time for saving Kenyans who are dying of hunger is now. The war to save Kenyans from hunger should not just be left to the Government. It is every Kenyan’s war. . . .’

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If you’d like to donate to the famine victims through international organizations, here are eight of the bigger humanitarian agencies collecting money online:
CARE
Concern
International Rescue Committee
Oxfam
Save the Children
UNICEF
World Food Programme
World Vision

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A video production of Kenyan musician Eric Wainaina and children singing his popular Kenyan song Daima, is making new rounds in the social media. ‘Eric chose to work with Shangilia kids to make this video soon after Kenya’s post-election violence of 2007. The voices of the kids are mixed in with Eric’s original track. This patriotic song was used extensively to bring back sanity to a beautiful land that was rapidly consuming itself after the 2007 elections. The video is on Eric’s music video DVD called ‘Daima: The Music Videos’ that has been on sale for some time now.’ The Swahili lyrics and English translation of the chorus of Daima follow.

Lyrics of the chorus of Eric Wainian’s ‘Daima’ (‘Always’)
Naishi, Natumaini,
Najitolea daima Kenya,
Hakika ya bendera
Ni uthabiti wangu
Nyeusi ya wananchi na nyekundu ni ya damu
Kijani ni ya ardhi, nyeupe ya amani
Daima mimi mkenya
Mwananchi mzalendo

English translation
I live, I hope, I give myself for Kenya.
The certainty of the flag is my steadfast support.
The black is the people, the red is the blood,
The green is the soil,
The white is peace.
Forever I am a Kenyan,
A patriotic citizen.

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