Feed aggregator

To mulch or to munch? Big modelling of big data

Our latest outputs -

To mulch or to munch? Big modelling of big data Rodriguez, D.; Voil, P. de; Rufino, M.C.; Odendo, M.; Wijk M.T. van African farmers are poorly resourced, highly diverse and aground by poverty traps making them rather impervious to change. As a consequence R4D efforts usually result in benefits but also trade-offs that constraint adoption and change. A typical case is the use of crop residues as mulches or as feedstock. Here we linked a database of household surveys with a dynamic whole farm simulation model, to quantify the diversity of trade-offs from the alternative use of crop residues. Simulating all the households in the survey (n = 613) over 99 years of synthetic climate data, showed that benefits and trade-offs from “mulching or munching” differ across agro-ecologies, and within agro-ecologies across typologies of households. Even though trade-offs between household production or income and environmental outcomes could be managed; the magnitude of the simulated benefits from the sustainable intensification of maize-livestock systems were small. Our modelling framework shows the benefits from the integration of socio-economic and biophysical approaches to support the design of development programs. Our results support the argument that a greater focus is required on the development and diversification of farmers' livelihoods within the framework of an improved understanding of the interconnectedness between biophysical, socio-economic and market factors.

Evaluating fire severity in Sudanian ecosystems of Burkina Faso using Landsat 8 satellite images

Our latest outputs -

Evaluating fire severity in Sudanian ecosystems of Burkina Faso using Landsat 8 satellite images Musyimi, Z.; Said, Mohammed Yahya; Zida, D.; Rosenstock, Todd S.; Udelhoven, T.; Savadogo, P.; de Leeuw, Jan; Aynekulu, E. The fire severity of the 2013–2014 fire season within Sudanian ecosystems in Burkina Faso was evaluated from Landsat 8 images using derivatives of the Normalized Burn Ratio algorithm (NBR). The relationship between the image-derived severity and the field observed severity i.e. Composite Burn Index (CBI) was best described by a nonlinear model of the form y = a + b*EXP(CBI *c) (R2 = 0.66). Classification of the image-derived burned area into burn severity classes achieved a classification Kappa accuracy statistic of 0.56. Highly severely burned areas were mapped with the highest accuracy (user's accuracy 77%, producer's accuracy 86%). The severity of the burn varied across phyto-geographical zones, protected status, land cover regimes, and forest management practices. The south Sudanian zone burned with a higher severity (low = 7%, moderate = 16% and high = 13%) than the north Sudanian zone (low = 5%, moderate = 10% and high = 5%). The mean of the highly severely burned areas differed significantly among the forest management practices (P = 0.005). A pair-wise comparison of the severity mean area indicated that the highly burned areas within forests managed for wildlife purposes differed significantly with that of both forests under the joint management (P = 0.006) and those under no management (P = 0.024). Among the management practices, forests jointly managed by the local communities and the government had the highest unburned area and the least highly severely burned areas reflecting the impacts of bottom-up forestry management where the local communities are actively involved in the management.

Exploring impacts of vegetated buffer strips on nitrogen cycling using a spatially explicit hydro-biogeochemical modeling approach

Our latest outputs -

Exploring impacts of vegetated buffer strips on nitrogen cycling using a spatially explicit hydro-biogeochemical modeling approach Klatt, S.; Kraus, D; Kraft, P.; Breuer, L.; Wlotzka, M.; Heuveline, V.; Haas, E.; Kiese, R.; Butterbach-Bahl, Klaus Agriculture has been recognized as a major anthropogenic source of surplus loads of nitrogen in the environment. Losses of nitrate via subsurface pathways are severely threatening groundwater and surface waters. This study explored the capability of a coupled hydro-biogeochemical spatially explicit model, simulating nitrogen cycling in agricultural soils and the associated fate of excess nitrate subjected to vertical and lateral displacement towards water bodies. Different vegetated buffer strips (VBS) were tested for their nitrate retention capability and impacts on N2O and N2 emissions. The effectiveness of a VBS to remove nitrate by denitrification strongly depends on soil characteristics and hydrological flow paths. Simulated N2 emissions from VBS with high soil moisture were up to twenty-fold compared to VBS where groundwater levels were low. Simulated streamwater nitrate concentrations without VBS were 3.7 mg l−1 and showed a decrease to 0.1 mg l−1 for a 20 m VBS.

What works where for which farm household: Rapid approaches to food availability analysis

Our latest outputs -

What works where for which farm household: Rapid approaches to food availability analysis Ritzema, R.S.; Frelat, R.; Hammond, J.; Wijk, Mark T. van Sustainable intensification has recently been developed and adopted as a key concept and driver for research and policy in sustainable agriculture. It includes ecological, economic and social dimensions, where food and nutrition security, gender and equity are crucial components. This book describes different aspects of systems research in agriculture in its broadest sense, where the focus is moved from farming systems to livelihoods systems.

System productivity and natural resource integrity in smallholder farming: Friends or foes?

Our latest outputs -

System productivity and natural resource integrity in smallholder farming: Friends or foes? Vanlauwe, Bernard; Barrios, E.; Robinson, Timothy; Van Asten, Piet; Zingore, S.; Gerard, Bruno Sustainable intensification has recently been developed and adopted as a key concept and driver for research and policy in sustainable agriculture. It includes ecological, economic and social dimensions, where food and nutrition security, gender and equity are crucial components. This book describes different aspects of systems research in agriculture in its broadest sense, where the focus is moved from farming systems to livelihoods systems.

Mapping of beef, sheep and goat food systems in Nairobi — A framework for policy making and the identification of structural vulnerabilities and deficiencies

Our latest outputs -

Mapping of beef, sheep and goat food systems in Nairobi — A framework for policy making and the identification of structural vulnerabilities and deficiencies Alarcon, P.; Fèvre, E.M.; Murungi, M.K.; Muinde, P.; Akoko, J.; Dominguez-Salas, P.; Kiambi, S.; Ahmed, S.; Häsler, B.; Rushton, J. Nairobi is a large rapidly-growing city whose demand for beef, mutton and goat products is expected to double by 2030. The study aimed to map the Nairobi beef, sheep and goat systems structure and flows to identify deficiencies and vulnerabilities to shocks. Cross-sectional data were collected through focus group discussions and interviews with people operating in Nairobi ruminant livestock and meat markets and in the large processing companies. Qualitative and quantitative data were obtained about the type of people, animals, products and value adding activities in the chains, and their structural, spatial and temporal interactions. Mapping analysis was done in three different dimensions: people and product profiling (interactions of people and products), geographical (routes of animals and products) and temporal mapping (seasonal fluctuations). The results obtained were used to identify structural deficiencies and vulnerability factors in the system. Results for the beef food system showed that 44–55% of the city's beef supply flows through the ‘local terminal markets’, but that 54–64% of total supply is controlled by one ‘meat market’. Numerous informal chains were identified, with independent livestock and meat traders playing a pivotal role in the functionality of these systems, and where most activities are conducted with inefficient quality control and under scarce and inadequate infrastructure and organisation, generating wastage and potential food safety risks in low quality meat products. Geographical and temporal analysis showed the critical areas influencing the different markets, with larger markets increasing their market share in the low season. Large processing companies, partly integrated, operate with high quality infrastructures, but with up to 60% of their beef supply depending on similar routes as the informal markets. Only these companies were involved in value addition activities, reaching high-end markets, but also dominating the distribution of popular products, such as beef sausages, to middle and low-end market. For the small ruminant food system, 73% of the low season supply flows through a single large informal market, Kiamaiko, located in an urban informal settlement. No grading is done for these animals or the meat produced. Large companies were reported to export up to 90% of their products. Lack of traceability and control of animal production was a common feature in all chains. The mapping presented provides a framework for policy makers and institutions to understand and design improvement plans for the Nairobi ruminant food system. The structural deficiencies and vulnerabilities identified here indicate the areas of intervention needed.

Potential of using host plant resistance, nitrogen and phosphorus fertilizers for reduction of Aspergillus flavuscolonization and aflatoxin accumulation in maize in Tanzania

Our latest outputs -

Potential of using host plant resistance, nitrogen and phosphorus fertilizers for reduction of Aspergillus flavuscolonization and aflatoxin accumulation in maize in Tanzania Manoza, F.S.; Mushongi, A.A.; Harvey, J.; Wainaina, J.; Wanjuki, I.; Ngeno, R.; Darnell, Ross; Gnonlonfin, B.G.J.; Massomo, Said Aflatoxin contamination (AC) in maize, caused by the fungal pathogen Aspergillus flavus(Link), starts at pre-harvest stage. Hence, interventions that reduce entry and development of A. flavus in the field are required. Trials were carried out at Seatondale and Igeri, to evaluate the effects of nitrogen and phosphorus fertilizer combinations, hereafter referred to as fertilizers, on A. flavus and AC in maize kernels. The main treatments were four combinations of N and P fertilizers (60 or 120 kg Nha−1 with 15 or 30 kg Pha−1) and sub-treatments were of six popular maize hybrids. Plants at 50% silking were inoculated with the fungus through the silk channels. Grains from inoculated and control ears were analysed for AC using Enzyme Linked Immunosorbent Assay, and pathogen content quantified by Quantitative Polymerase Chain reaction. Higher AC (mean 6.51 μg kg−1) occurred at Seatondale than Igeri (mean 0.45 μg kg−1), probably due to low temperatures (8–23 °C) at Igeri. Fertilizers didn't cause significant differences in neither pathogen colonization nor AC at both sites. However, mean A. flavusaccumulation, as measured by pathogen host DNA ratio, was thrice (0.16) as high in sub-optimal fertilizer conditions compared to optimal fertilizer rate (0.05). All hybrids were susceptible to A. flavus and AC, though a difference in AC was noted among the hybrids at both sites. PAN 691 showed the highest AC (14.68 μg kg−1), whereas UHS 5210 had the lowest AC (1.87 μg kg−1). The susceptibility varied among the hybrids and was mostly associated with ear droopiness, husk tightness, days to 50% silking, 50% pollen shed, Anthesis to silking interval, diseased ears, insect damaged ears, kernel texture, dry matter, grain filling, ear height, kernel ash content and kernel moisture content. At Seatondale, A. flavus accumulation was positively correlated with aflatoxin (r = 0.606), and both A. flavus accumulation and AC were positively correlated with diseased ears. Selection and growing of less susceptible varieties under optimal fertilizer regime offer ideal strategy for sustainable reduction of A. flavus and aflatoxin contamination in maize at pre-harvest.

Potential of using host plant resistance, nitrogen and phosphorus fertilizers for reduction of Aspergillus flavuscolonization and aflatoxin accumulation in maize in Tanzania

BecA outputs -

Potential of using host plant resistance, nitrogen and phosphorus fertilizers for reduction of Aspergillus flavuscolonization and aflatoxin accumulation in maize in Tanzania Manoza, F.S.; Mushongi, A.A.; Harvey, J.; Wainaina, J.; Wanjuki, I.; Ngeno, R.; Darnell, Ross; Gnonlonfin, B.G.J.; Massomo, Said Aflatoxin contamination (AC) in maize, caused by the fungal pathogen Aspergillus flavus(Link), starts at pre-harvest stage. Hence, interventions that reduce entry and development of A. flavus in the field are required. Trials were carried out at Seatondale and Igeri, to evaluate the effects of nitrogen and phosphorus fertilizer combinations, hereafter referred to as fertilizers, on A. flavus and AC in maize kernels. The main treatments were four combinations of N and P fertilizers (60 or 120 kg Nha−1 with 15 or 30 kg Pha−1) and sub-treatments were of six popular maize hybrids. Plants at 50% silking were inoculated with the fungus through the silk channels. Grains from inoculated and control ears were analysed for AC using Enzyme Linked Immunosorbent Assay, and pathogen content quantified by Quantitative Polymerase Chain reaction. Higher AC (mean 6.51 μg kg−1) occurred at Seatondale than Igeri (mean 0.45 μg kg−1), probably due to low temperatures (8–23 °C) at Igeri. Fertilizers didn't cause significant differences in neither pathogen colonization nor AC at both sites. However, mean A. flavusaccumulation, as measured by pathogen host DNA ratio, was thrice (0.16) as high in sub-optimal fertilizer conditions compared to optimal fertilizer rate (0.05). All hybrids were susceptible to A. flavus and AC, though a difference in AC was noted among the hybrids at both sites. PAN 691 showed the highest AC (14.68 μg kg−1), whereas UHS 5210 had the lowest AC (1.87 μg kg−1). The susceptibility varied among the hybrids and was mostly associated with ear droopiness, husk tightness, days to 50% silking, 50% pollen shed, Anthesis to silking interval, diseased ears, insect damaged ears, kernel texture, dry matter, grain filling, ear height, kernel ash content and kernel moisture content. At Seatondale, A. flavus accumulation was positively correlated with aflatoxin (r = 0.606), and both A. flavus accumulation and AC were positively correlated with diseased ears. Selection and growing of less susceptible varieties under optimal fertilizer regime offer ideal strategy for sustainable reduction of A. flavus and aflatoxin contamination in maize at pre-harvest.

Record payouts being made by Kenya Government and insurers to protect herders facing historic drought

East Africa News -

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From left to right: Jimmy Smith, director general of the International Livestock Research Institute (ILRI); Andrew Tuimur, principal secretary in Kenya’s State Department of Livestock; and Willy Bett, cabinet secretary for the Kenya Ministry of Agriculture, Livestock and Fisheries during a press conference held on 20 Feb 2017 announcing payments to more than 12,000 pastoral households under the Kenya Livestock Insurance Program (KLIP) (photo credit: ILRI/Dorine Odongo).

More than Ksh214 million is on tap for 12,000 pastoral households in six counties of northern Kenya through innovative policies that use satellite imagery to trigger payments for feed, veterinary supplies and water.

As an epic drought desiccates fields and forages in the Horn of Africa, Government of Kenya officials, in partnership with Kenyan insurers, today announced payments to over 12,000 pastoral households under a breakthrough livestock insurance plan—one that uses satellites to monitor vegetation available to livestock and triggers assistance for feed, veterinary medicines and even water trucks when animal deaths are imminent.

To avert future losses, nearly Ksh215 million  (nearly USD2.1 million) in insurance payouts across six counties will be made by the end of Feb 2017 through the Kenya Livestock Insurance Program (KLIP). Payments are pegged to measurements of forage conditions made via satellite for each area, and will range from Ksh1,450 (USD14) per pastoral household in areas that have suffered modest losses to Ksh29,400 (USD284) in areas where drought is particularly severe. The average payment is around Ksh17,800 (USD172) per pastoral household, directly reaching about 100,000 people. Pilot projects that preceded the program established payment levels linked to the state of grazing lands, with the goal of providing enough money to help pastoralists keep their animals alive until rains returns.

‘This is the biggest livestock insurance payout ever made under Kenya’s agricultural risk management program and the most important as well, because without their livestock, pastoralist communities would be devastated’, said Willy Bett, Cabinet Secretary for Kenya’s Ministry of Agriculture, Livestock and Fisheries. ‘This insurance program is not just an effective component of our national drought relief effort. It’s also a way to ensure that pastoralists can continue to thrive and contribute to our collective future as a nation.’

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Jimmy Smith, ILRI director general, and Andrew Tuimur, principal secretary in Kenya’s State Department of Livestock, confer during the KLIP press conference yesterday (photo credit: ILRI/Dorine Odongo).

Livestock are a major component of the Kenyan economy. Between 2008 and 2011, livestock losses in Kenya accounted for 70 per cent of the USD12.1 billion in damages caused by drought.

In response to these major droughts, Kenya’s Ministry of Agriculture, Livestock and Fisheries has developed KLIP with technical assistance from the International Livestock Research Institute (ILRI), the World Bank Group, and Financial Sector Development (FSD) Kenya, as part of their 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.

KLIP is intended to provide a safety net for Kenyan herders, who for centuries have grazed their animals across vast stretches of arid and semi-arid lands. KLIP began with two counties in the short-rains season of 2015, Turkana and Wajir, and now covers pastoralists in an additional four counties: Mandera, Marsabit, Isiolo and Tana River.

KLIP is based on the internationally recognized ‘Index-Based Livestock Insurance’ model, which was developed several years ago by a team of agricultural economists from ILRI, Cornell University, the University of California at Davis and the World Bank Group, working in close cooperation with pastoralist communities. The signature feature of this novel insurance scheme is the use of satellite data to generate an index for grazing conditions, so that payments are triggered when conditions degrade below a certain critical level. The index eliminates the need for insurance agents to be out in the field monitoring forage and animals, which, given the remote regions involved, would make livestock insurance logistically and financially impossible to provide.

In Feb 2017, APA Insurance, on behalf of the insurance consortium, will disburse most payments directly to pastoralists’ bank accounts or to accounts accessed via mobile phones—an increasingly popular and convenient way to conduct financial transactions in Kenya, especially in the country’s most remote areas. For those without accounts, cheques
will be issued.

‘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 Ashok Shah, Group CEO of APA Insurance. ‘Now, 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.’

Lovemore Forichi, Head of Agriculture Reinsurance Africa said, ‘This program is a role model for the rest of Africa and beyond. The government and its partners have brought together the latest technological and financial tools from a group of committed and innovative private sector players. The payouts prove that this program is delivering a financial safety net where it is needed. Having worked in this field across the globe, KLIP highlights Kenya’s pioneering role in providing drought protection for its people.’

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Kenya Agriculture Cabinet Secretary Willy Bett addresses a press conference announcing payments to more than 12,000 pastoral households under the Kenya Livestock Insurance Program (KLIP) (photo credit: ILRI/Dorine Odongo).

Currently, the Government of Kenya purchases cover on behalf of approximately 2,500 of the most vulnerable pastoral households in each of the six counties.

Kenyan officials are now working with colleagues in county governments to scale up the program and make KLIP coverage available to a wider range of pastoralists across all income levels.

‘These payouts demonstrate that KLIP works, and we now urge all pastoralists to make use of livestock insurance to cover themselves against drought. The government will look at ways to make this insurance accessible to all pastoralists’, said Dr Andrew Tuimur, principal secretary in the State Department of Livestock in the Kenyan Ministry of Agriculture, Livestock
and Fisheries.

The counties in Kenya targeted for KLIP payments are enduring one of the worst droughts to hit the Horn of Africa in a quarter century. The payments being dispatched this month are intended to help herders recover from the lack of precipitation during the so-called ‘short-rains’ period that ran from October to December 2016. If the drought continues during the ‘long-rains’ season, which usually runs from March to June, additional large payouts are likely.

In addition to the government-led consortium, other organizations have also been involved in delivering index-based livestock insurance for pastoralists. For example, Takaful Insurance of Africa, which launched the provision of a similar product in 2013, will this season be making payouts to over 2,000 households across six counties to the tune of close to Ksh10.5 million.

‘We are hopeful that we are writing a new chapter in the long and challenging history of one of the oldest forms of agriculture still practiced in the world today’, said Andrew Mude, a principal research scientist at ILRI whose contribution to the development of index-based livestock insurance earned him the 2016 Norman Borlaug Award for Field Research and Application. ‘It’s been a team effort’, Mude added. ‘This day would never have arrived without the partnership between the Government of Kenya, the KLIP Implementation Unit led by Richard Kyuma, private-sector players and a range of technical and development partners.‘

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ILRI Director General Jimmy Smith (left) gives an interview to a journalist from The People Daily Newspaper at the KLIP press conference (photo credit: ILRI/Dorine Odongo).

Read more
The Standard (Kenya): Sh215m insurance payout offers relief to drought-hit pastoralists, 21 Feb 2017
Capital FM (Kenya): Pastoralists to receive Sh215mn in drought insurance payout, 20 Feb 2017
BBC News: In pictures: Kenyans share their dinner to save livestock, 19 Feb 2017
New York Times: On selling insurance (not lottery tickets) to Africa’s struggling (stargazing) livestock herders, 11 Nov 2016
Daily Nation (Kenya): Kenya to extend livestock insurance to 14 counties, 30 Aug 2016

More information
To request interviews with specific organizations or spokespeople, please reach out to the appropriate media contact below:

Ministry of Agriculture, Livestock and Fisheries
John Mwangi
Mobile: +254 722 582 248
Email: mbaumwangi@gmail.com

APA Insurance
Jackie Tonui
Head of Corporate Communications
Mobile: +254 722 415 619
Tel : +254 020 286 2000
Email: jackie.tonui@apollo.co.ke

World Bank
Keziah Muthembwa
Email: kmuthembwa@worldbank.org

International Livestock Research Institute (ILRI)
Nancy Moss
Mobile: +254 729 991 028
Email : nmoss@burness.com

Takaful Insurance of Africa
Amina Farah
Mobile: +254 723 131 405
Email: Amina.farah@takafulafrica.com

More about KLIP
KLIP, the Kenya Livestock Insurance Program, is a Government of Kenya-funded drought insurance program for vulnerable pastoralists located in the arid and semi-arid (ASAL) counties of Kenya. KLIP is insured by a pool of seven leading Kenyan insurance companies. It is a world leading insurance scheme that utilizes technology and innovative insurance technical to bring livestock insurance to those who need it the most.

Pastoralism in Kenya
Most people in the drylands of Eastern Africa (often referred to as the ‘Horn of Africa[) live in pastoral communities where life revolves around herding livestock such as goats, cattle and sheep across vast and remote grazing areas (or ‘rangelands’) in search of forage and water. Pastoralists regularly move hundreds of kilometers with their stock, and this model of food production enables communities in the Horn of Africa to produce food in an otherwise unyielding environment. Over 50 million pastoralists live across sub-Saharan Africa, and an estimated 20 million of these live in the Horn of Africa. Pastoralism is important also to national economies. About 90 per cent of the meat consumed and 40 per cent of the entire livestock economy in Kenya and Ethiopia is generated by pastoral communities. The value of exports of livestock and livestock products from the Horn of Africa now exceeds US$1 billion annually, with most of these exports sourced from pastoralists. But every three to five years, severe droughts in northern Kenya result in huge numbers of livestock dying, mainly because of starvation and lack of water. Between 2008 and 2011, Kenya’s economy suffered USD12.1 billion in damages due to drought, over 70 per cent of which was due to livestock losses. About 10 per cent of Kenya’s national livestock herd died over this period, leading to a loss of livelihoods for thousands of pastoralists who had to rely on government and donor relief programs. With the impacts of climate change, droughts in the Arid and Semi-Arid Lands (ASAL) of Kenya have in recent decades become more frequent, prolonged and severe, and pastoralists can no longer keep their animals alive by using traditional management practices centred around migration.

The case for livestock insurance
In northern Kenya, the average herding household holds 100 per cent of its productive assets in the form of livestock. On average, sales from livestock and livestock products constitute over 40 per cent of total household income. In comparison, close to 15 per cent of household income comes from food or cash aid. Drought-related livestock losses—caused by animals either starving to death or being sold-off for fear that they would otherwise perish—are the primary threat to pastoralists’ existence. Severe to catastrophic droughts, which account for 75 per cent of livestock deaths in the region, routinely leave pastoral communities destitute. During severe droughts in northern Kenya, starvation is the major cause of death of animals because of depletion of forage/grazing resources followed by lack of drinking water and diseases. During the 2011 drought, for example, herders in East Africa experienced livestock losses as high as 40 to 60 per cent. Livestock insurance can provide an incredibly valuable safety net by limiting drought-related livestock losses through early compensation that allows pastoralists to protect their assets before they start to die in large numbers. For livestock and agriculture in general, insurance is recognized across the globe as an essential hedge against the risks inherent to all forms of farming. Livestock keepers and farmers in the US, Europe, Latin America and India have access to various forms of insurance as a way to manage weather-related losses.

KLIP: Social protection through livestock insurance
In 2013 the incoming Jubilee government made a commitment to fund a drought insurance program for vulnerable pastoralists in the ASALs. The Government of Kenya (GoK) charged the State Department of Livestock, Ministry of Agriculture, Livestock and Fisheries (SDL-MALF) with developing the program and requested technical assistance from the World Bank Group (WBG) and its technical partners, the International Livestock Research Institute (ILRI) and Financial Sector Deepening (FSD).

KLIP is a public-private partnership between the GoK (through SDL-MALF) and a pool of seven Kenyan insurance companies, backed by expertise and financial support for a reinsurance partner and technical partners. KLIP builds on the experience of the ILRI designed Index-based Livestock Insurance (IBLI) program which is a voluntary retail forage availability drought index insurance policy underwritten by several insurers in the ASALs since 2010. KLIP is designed as a drought ‘Asset Protection’ cover which aims to make early payouts when natural grazing/forage resources are severely depleted to enable vulnerable pastoralists to purchase fodder and animal feed supplements to keep their core breeding animals alive until the drought has passed and grazing conditions return to normal. KLIP has two components:
1. Macro-level social protection cover for the most vulnerable pastoralist who are provided free insurance protection funded by government for five Tropical Livestock Units (TLUs) per pastoralist (termed a beneficiary), and
2. Voluntary retail sales to any pastoralist wishing to purchase KLIP drought cover. In order to make cover more affordable to pastoralists, the GoK is considering providing partial premium subsidies.

KLIP Component 1 is intended to complement the government’s other social protection programs such as the Hunger Safety Net Program in four counties (Mandera, Marsabit, Turkana and Wajir) and to contribute to the National Drought Management Agency’s drought risk management programs in the northern counties of Kenya.

KLIP: Progress to Date
KLIP’s first component was launched during the 2015 short rainy season (October–December) in Turkana and Wajir, covering a total of 5,013 pastoralists divided equally between both counties. During the 2016 short rainy season 2016, four additional counties (Mandera, Marsabit, Isiolo and Tana River) were added to the program with an average of between 2,000 and 2,500 pastoralists per county. KLIP has insured a total of 14,010 pastoralists across these six counties.

In 2015/16, KLIP incurred very small drought claims in two Insured Units in Wajir County. In the 2016/17 short rainy season, a very severe drought has affected much of northern Kenya and the KLIP policy has triggered drought payouts in 62 (88%) of the 70 Insured Units across the six counties, with total payouts valued at nearly KSh. 215 million being due to 12,064 pastoralists (86% of all insured pastoralists).

Frequently Asked Questions
Is livestock insurance a new concept?
Pasture drought satellite index insurance has been implemented for commercial cattle ranching in Spain, the USA, and Canada since the turn of the century. Based on these principles, ILRI designed the first satellite forage-drought index insurance cover for semi-nomadic pastoralists in northern Kenya in 2009 and then in Ethiopia starting in 2012. Both programs are voluntary retail sales to individual pastoralists. KLIP has built on the IBLI experience.

KLIP Component 1, however, represents a new approach to providing drought livelihood protection and drought resilience building to large numbers of vulnerable pastoralists who are too poor to buy insurance. It is a macro-level insurance cover purchased by the GoK which is the Insured policy holder and which has agreed to fund 100% of the component 1 premiums. Component 1 protects large numbers of vulnerable pastoralists (termed beneficiaries) in each county who are targeted and selected by the County Administrations and departments of livestock in collaboration with community leaders.

What does KLIP cover?
The sum insured is calculated on the basis of the costs of supplementary feed requirements to maintain one TLU for 12 months and is currently valued at KSh. 14,000 per TLU. Therefore, for each pastoralist who has protection for five TLU, the maximum value they will receive in the event that the policy triggers a 100% payout in an insurance year is 5 x KSh. 14,000 or KSh. 70,000 per beneficiary.

KLIP provides drought protection over two cover periods, the long rainy season from March to June, with 58% of the sum insured or Ksh. 40,600 per pastoralist allocated to this season, and the short rainy season from October to December, with 42% of the sum insured or KSh. 29,400 allocated to this second season. KLIP does not insure against the death of livestock. However, by making timely payouts during droughts it can help pastoralists to reduce mortality levels in their herds.

How are the KLIP Component 1 beneficiaries chosen?
Selection criteria include: 1) the pastoralist must own a minimum of 5 TLUs and depend upon livestock for their primary source of income; 2) they must not be a beneficiary of the HSNP cash transfer program; and 3) they should be chosen because they are identified in their communities as being vulnerable pastoralists.

Targeting and selection of pastoralists is a task which is carried out by the County Governments, their departments of livestock extension, and the local community leaders. SDL does not have the staff or resources to be able to monitor the quality of the selection process. Every attempt is made to ensure that pastoralists are selected from communities throughout the county and that equal weighting is given to the numbers of pastoralists selected in each ward and village.

What ‘index’ does KLIP measure and why?
KLIP uses satellite data of vegetation cover to assemble an index of seasonal forage availability/scarcity, called the Normalized Differenced Vegetative Index (NDVI). NDVI was a natural choice for the KLIP product given that livestock in pastoral production systems depend almost entirely on available forage for their nutrition, and given that NDVI serves as a strong indicator of the vegetation available in the area for the livestock to consume.

NDVI also fits a number of the prerequisites required for a data source to serve as an insurable index: it is cheap (in this case free) to procure; neither the insurer nor the insured can feasibly manipulate it; it is an objective measure; and it is auditable. NDVI readings over an insurance unit and across a season are averaged, aggregated and standardized across time to derive the index.

How does KLIP know when to payout?
When the index signals that forage conditions have deteriorated to the point where animals are becoming malnourished, KLIP triggers payouts to enable the pastoralists to purchase supplementary feeds to protect their livestock assets against starvation. The ‘trigger level’ for the index—the threshold at which payouts must be made—is determined according to the degree of risk exposure coverage provided. At the GoK’s request, they are purchasing cover with the KLIP Trigger which opens the policy for a payout set at the 20th percentile of seasonal total forage availability; essentially this means that the contract pays out on average once every five seasons or once every two and a half years.

What payouts have been made by KLIP since launch in 2015/16
In 2015/16 KLIP precipitation levels in Turkana and Wajir were average in the short rains and there were no forage scarcity drought related payouts in that season. In the subsequent 2016 long rains, a small number of drought payouts were triggered in two Insured Units in Wajir, valued at KSh. 4.1 million.

In 2016/17, the short rainy season has experienced the worst droughts in the past 16 years as measured by the NDVI index. Claims payouts will be due to 12,064 pastoralists or 86% of the total of 14, 010 pastoralists who are protected under the Component 1 cover purchased by government. The total calculated payouts amount to KSh. 214,700.00 or an average of Ksh. 17,800 per beneficiary. The range in payouts is from a low of KSh. 1,400 per pastoralist to the maximum payout of KSh. 29,400 per beneficiary.

The APA-led pool of coinsurers will be settling these payouts in February 2017 to the 12,064 pastoralists, about two thirds of whom have individual bank accounts, or M-Pesa accounts thereby facilitating direct electronic transfer to their accounts. For the remaining one third, payments will be made by cheque in the name of the beneficiary. For these pastoralists, SDL is seeking the help of the county administrations in delivering the cheques to the pastoralists as quickly as possible.

Who are the key partners?
Government:
State Department of Livestock, Ministry of Agriculture, Livestock and Fisheries
Insurance companies:
APA Insurance Ltd.
UAP Insurance
CIC Insurance
Jubilee Insurance
Amaco Insurance
Heritage Insurance
Kenya Orient
Reinsurance partner:
Swiss Re
Technical Assistance partners:
World Bank Group
International Livestock Research Institute
Financial Sector Deepening


Record payouts being made by Kenya Government and insurers to protect herders facing historic drought

Spotlight from ILRI news -

klip_cropped02

From left to right: Jimmy Smith, director general of the International Livestock Research Institute (ILRI); Andrew Tuimur, principal secretary in Kenya’s State Department of Livestock; and Willy Bett, cabinet secretary for the Kenya Ministry of Agriculture, Livestock and Fisheries during a press conference held on 20 Feb 2017 announcing payments to more than 12,000 pastoral households under the Kenya Livestock Insurance Program (KLIP) (photo credit: ILRI/Dorine Odongo).

More than Ksh214 million is on tap for 12,000 pastoral households in six counties of northern Kenya through innovative policies that use satellite imagery to trigger payments for feed, veterinary supplies and water.

As an epic drought desiccates fields and forages in the Horn of Africa, Government of Kenya officials, in partnership with Kenyan insurers, today announced payments to over 12,000 pastoral households under a breakthrough livestock insurance plan—one that uses satellites to monitor vegetation available to livestock and triggers assistance for feed, veterinary medicines and even water trucks when animal deaths are imminent.

To avert future losses, nearly Ksh215 million  (nearly USD2.1 million) in insurance payouts across six counties will be made by the end of Feb 2017 through the Kenya Livestock Insurance Program (KLIP). Payments are pegged to measurements of forage conditions made via satellite for each area, and will range from Ksh1,450 (USD14) per pastoral household in areas that have suffered modest losses to Ksh29,400 (USD284) in areas where drought is particularly severe. The average payment is around Ksh17,800 (USD172) per pastoral household, directly reaching about 100,000 people. Pilot projects that preceded the program established payment levels linked to the state of grazing lands, with the goal of providing enough money to help pastoralists keep their animals alive until rains returns.

‘This is the biggest livestock insurance payout ever made under Kenya’s agricultural risk management program and the most important as well, because without their livestock, pastoralist communities would be devastated’, said Willy Bett, Cabinet Secretary for Kenya’s Ministry of Agriculture, Livestock and Fisheries. ‘This insurance program is not just an effective component of our national drought relief effort. It’s also a way to ensure that pastoralists can continue to thrive and contribute to our collective future as a nation.’

smithandtuimur_cropped

Jimmy Smith, ILRI director general, and Andrew Tuimur, principal secretary in Kenya’s State Department of Livestock, confer during the KLIP press conference yesterday (photo credit: ILRI/Dorine Odongo).

Livestock are a major component of the Kenyan economy. Between 2008 and 2011, livestock losses in Kenya accounted for 70 per cent of the USD12.1 billion in damages caused by drought.

In response to these major droughts, Kenya’s Ministry of Agriculture, Livestock and Fisheries has developed KLIP with technical assistance from the International Livestock Research Institute (ILRI), the World Bank Group, and Financial Sector Development (FSD) Kenya, as part of their 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.

KLIP is intended to provide a safety net for Kenyan herders, who for centuries have grazed their animals across vast stretches of arid and semi-arid lands. KLIP began with two counties in the short-rains season of 2015, Turkana and Wajir, and now covers pastoralists in an additional four counties: Mandera, Marsabit, Isiolo and Tana River.

KLIP is based on the internationally recognized ‘Index-Based Livestock Insurance’ model, which was developed several years ago by a team of agricultural economists from ILRI, Cornell University, the University of California at Davis and the World Bank Group, working in close cooperation with pastoralist communities. The signature feature of this novel insurance scheme is the use of satellite data to generate an index for grazing conditions, so that payments are triggered when conditions degrade below a certain critical level. The index eliminates the need for insurance agents to be out in the field monitoring forage and animals, which, given the remote regions involved, would make livestock insurance logistically and financially impossible to provide.

In Feb 2017, APA Insurance, on behalf of the insurance consortium, will disburse most payments directly to pastoralists’ bank accounts or to accounts accessed via mobile phones—an increasingly popular and convenient way to conduct financial transactions in Kenya, especially in the country’s most remote areas. For those without accounts, cheques
will be issued.

‘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 Ashok Shah, Group CEO of APA Insurance. ‘Now, 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.’

Lovemore Forichi, Head of Agriculture Reinsurance Africa said, ‘This program is a role model for the rest of Africa and beyond. The government and its partners have brought together the latest technological and financial tools from a group of committed and innovative private sector players. The payouts prove that this program is delivering a financial safety net where it is needed. Having worked in this field across the globe, KLIP highlights Kenya’s pioneering role in providing drought protection for its people.’

klip_05_cropped

Kenya Agriculture Cabinet Secretary Willy Bett addresses a press conference announcing payments to more than 12,000 pastoral households under the Kenya Livestock Insurance Program (KLIP) (photo credit: ILRI/Dorine Odongo).

Currently, the Government of Kenya purchases cover on behalf of approximately 2,500 of the most vulnerable pastoral households in each of the six counties.

Kenyan officials are now working with colleagues in county governments to scale up the program and make KLIP coverage available to a wider range of pastoralists across all income levels.

‘These payouts demonstrate that KLIP works, and we now urge all pastoralists to make use of livestock insurance to cover themselves against drought. The government will look at ways to make this insurance accessible to all pastoralists’, said Dr Andrew Tuimur, principal secretary in the State Department of Livestock in the Kenyan Ministry of Agriculture, Livestock
and Fisheries.

The counties in Kenya targeted for KLIP payments are enduring one of the worst droughts to hit the Horn of Africa in a quarter century. The payments being dispatched this month are intended to help herders recover from the lack of precipitation during the so-called ‘short-rains’ period that ran from October to December 2016. If the drought continues during the ‘long-rains’ season, which usually runs from March to June, additional large payouts are likely.

In addition to the government-led consortium, other organizations have also been involved in delivering index-based livestock insurance for pastoralists. For example, Takaful Insurance of Africa, which launched the provision of a similar product in 2013, will this season be making payouts to over 2,000 households across six counties to the tune of close to Ksh10.5 million.

‘We are hopeful that we are writing a new chapter in the long and challenging history of one of the oldest forms of agriculture still practiced in the world today’, said Andrew Mude, a principal research scientist at ILRI whose contribution to the development of index-based livestock insurance earned him the 2016 Norman Borlaug Award for Field Research and Application. ‘It’s been a team effort’, Mude added. ‘This day would never have arrived without the partnership between the Government of Kenya, the KLIP Implementation Unit led by Richard Kyuma, private-sector players and a range of technical and development partners.‘

smithandpeopledailynewspaper_cropped

ILRI Director General Jimmy Smith (left) gives an interview to a journalist from The People Daily Newspaper at the KLIP press conference (photo credit: ILRI/Dorine Odongo).

Read more
The Standard (Kenya): Sh215m insurance payout offers relief to drought-hit pastoralists, 21 Feb 2017
Capital FM (Kenya): Pastoralists to receive Sh215mn in drought insurance payout, 20 Feb 2017
BBC News: In pictures: Kenyans share their dinner to save livestock, 19 Feb 2017
New York Times: On selling insurance (not lottery tickets) to Africa’s struggling (stargazing) livestock herders, 11 Nov 2016
Daily Nation (Kenya): Kenya to extend livestock insurance to 14 counties, 30 Aug 2016

More information
To request interviews with specific organizations or spokespeople, please reach out to the appropriate media contact below:

Ministry of Agriculture, Livestock and Fisheries
John Mwangi
Mobile: +254 722 582 248
Email: mbaumwangi@gmail.com

APA Insurance
Jackie Tonui
Head of Corporate Communications
Mobile: +254 722 415 619
Tel : +254 020 286 2000
Email: jackie.tonui@apollo.co.ke

World Bank
Keziah Muthembwa
Email: kmuthembwa@worldbank.org

International Livestock Research Institute (ILRI)
Nancy Moss
Mobile: +254 729 991 028
Email : nmoss@burness.com

Takaful Insurance of Africa
Amina Farah
Mobile: +254 723 131 405
Email: Amina.farah@takafulafrica.com

More about KLIP
KLIP, the Kenya Livestock Insurance Program, is a Government of Kenya-funded drought insurance program for vulnerable pastoralists located in the arid and semi-arid (ASAL) counties of Kenya. KLIP is insured by a pool of seven leading Kenyan insurance companies. It is a world leading insurance scheme that utilizes technology and innovative insurance technical to bring livestock insurance to those who need it the most.

Pastoralism in Kenya
Most people in the drylands of Eastern Africa (often referred to as the ‘Horn of Africa[) live in pastoral communities where life revolves around herding livestock such as goats, cattle and sheep across vast and remote grazing areas (or ‘rangelands’) in search of forage and water. Pastoralists regularly move hundreds of kilometers with their stock, and this model of food production enables communities in the Horn of Africa to produce food in an otherwise unyielding environment. Over 50 million pastoralists live across sub-Saharan Africa, and an estimated 20 million of these live in the Horn of Africa. Pastoralism is important also to national economies. About 90 per cent of the meat consumed and 40 per cent of the entire livestock economy in Kenya and Ethiopia is generated by pastoral communities. The value of exports of livestock and livestock products from the Horn of Africa now exceeds US$1 billion annually, with most of these exports sourced from pastoralists. But every three to five years, severe droughts in northern Kenya result in huge numbers of livestock dying, mainly because of starvation and lack of water. Between 2008 and 2011, Kenya’s economy suffered USD12.1 billion in damages due to drought, over 70 per cent of which was due to livestock losses. About 10 per cent of Kenya’s national livestock herd died over this period, leading to a loss of livelihoods for thousands of pastoralists who had to rely on government and donor relief programs. With the impacts of climate change, droughts in the Arid and Semi-Arid Lands (ASAL) of Kenya have in recent decades become more frequent, prolonged and severe, and pastoralists can no longer keep their animals alive by using traditional management practices centred around migration.

The case for livestock insurance
In northern Kenya, the average herding household holds 100 per cent of its productive assets in the form of livestock. On average, sales from livestock and livestock products constitute over 40 per cent of total household income. In comparison, close to 15 per cent of household income comes from food or cash aid. Drought-related livestock losses—caused by animals either starving to death or being sold-off for fear that they would otherwise perish—are the primary threat to pastoralists’ existence. Severe to catastrophic droughts, which account for 75 per cent of livestock deaths in the region, routinely leave pastoral communities destitute. During severe droughts in northern Kenya, starvation is the major cause of death of animals because of depletion of forage/grazing resources followed by lack of drinking water and diseases. During the 2011 drought, for example, herders in East Africa experienced livestock losses as high as 40 to 60 per cent. Livestock insurance can provide an incredibly valuable safety net by limiting drought-related livestock losses through early compensation that allows pastoralists to protect their assets before they start to die in large numbers. For livestock and agriculture in general, insurance is recognized across the globe as an essential hedge against the risks inherent to all forms of farming. Livestock keepers and farmers in the US, Europe, Latin America and India have access to various forms of insurance as a way to manage weather-related losses.

KLIP: Social protection through livestock insurance
In 2013 the incoming Jubilee government made a commitment to fund a drought insurance program for vulnerable pastoralists in the ASALs. The Government of Kenya (GoK) charged the State Department of Livestock, Ministry of Agriculture, Livestock and Fisheries (SDL-MALF) with developing the program and requested technical assistance from the World Bank Group (WBG) and its technical partners, the International Livestock Research Institute (ILRI) and Financial Sector Deepening (FSD).

KLIP is a public-private partnership between the GoK (through SDL-MALF) and a pool of seven Kenyan insurance companies, backed by expertise and financial support for a reinsurance partner and technical partners. KLIP builds on the experience of the ILRI designed Index-based Livestock Insurance (IBLI) program which is a voluntary retail forage availability drought index insurance policy underwritten by several insurers in the ASALs since 2010. KLIP is designed as a drought ‘Asset Protection’ cover which aims to make early payouts when natural grazing/forage resources are severely depleted to enable vulnerable pastoralists to purchase fodder and animal feed supplements to keep their core breeding animals alive until the drought has passed and grazing conditions return to normal. KLIP has two components:
1. Macro-level social protection cover for the most vulnerable pastoralist who are provided free insurance protection funded by government for five Tropical Livestock Units (TLUs) per pastoralist (termed a beneficiary), and
2. Voluntary retail sales to any pastoralist wishing to purchase KLIP drought cover. In order to make cover more affordable to pastoralists, the GoK is considering providing partial premium subsidies.

KLIP Component 1 is intended to complement the government’s other social protection programs such as the Hunger Safety Net Program in four counties (Mandera, Marsabit, Turkana and Wajir) and to contribute to the National Drought Management Agency’s drought risk management programs in the northern counties of Kenya.

KLIP: Progress to Date
KLIP’s first component was launched during the 2015 short rainy season (October–December) in Turkana and Wajir, covering a total of 5,013 pastoralists divided equally between both counties. During the 2016 short rainy season 2016, four additional counties (Mandera, Marsabit, Isiolo and Tana River) were added to the program with an average of between 2,000 and 2,500 pastoralists per county. KLIP has insured a total of 14,010 pastoralists across these six counties.

In 2015/16, KLIP incurred very small drought claims in two Insured Units in Wajir County. In the 2016/17 short rainy season, a very severe drought has affected much of northern Kenya and the KLIP policy has triggered drought payouts in 62 (88%) of the 70 Insured Units across the six counties, with total payouts valued at nearly KSh. 215 million being due to 12,064 pastoralists (86% of all insured pastoralists).

Frequently Asked Questions
Is livestock insurance a new concept?
Pasture drought satellite index insurance has been implemented for commercial cattle ranching in Spain, the USA, and Canada since the turn of the century. Based on these principles, ILRI designed the first satellite forage-drought index insurance cover for semi-nomadic pastoralists in northern Kenya in 2009 and then in Ethiopia starting in 2012. Both programs are voluntary retail sales to individual pastoralists. KLIP has built on the IBLI experience.

KLIP Component 1, however, represents a new approach to providing drought livelihood protection and drought resilience building to large numbers of vulnerable pastoralists who are too poor to buy insurance. It is a macro-level insurance cover purchased by the GoK which is the Insured policy holder and which has agreed to fund 100% of the component 1 premiums. Component 1 protects large numbers of vulnerable pastoralists (termed beneficiaries) in each county who are targeted and selected by the County Administrations and departments of livestock in collaboration with community leaders.

What does KLIP cover?
The sum insured is calculated on the basis of the costs of supplementary feed requirements to maintain one TLU for 12 months and is currently valued at KSh. 14,000 per TLU. Therefore, for each pastoralist who has protection for five TLU, the maximum value they will receive in the event that the policy triggers a 100% payout in an insurance year is 5 x KSh. 14,000 or KSh. 70,000 per beneficiary.

KLIP provides drought protection over two cover periods, the long rainy season from March to June, with 58% of the sum insured or Ksh. 40,600 per pastoralist allocated to this season, and the short rainy season from October to December, with 42% of the sum insured or KSh. 29,400 allocated to this second season. KLIP does not insure against the death of livestock. However, by making timely payouts during droughts it can help pastoralists to reduce mortality levels in their herds.

How are the KLIP Component 1 beneficiaries chosen?
Selection criteria include: 1) the pastoralist must own a minimum of 5 TLUs and depend upon livestock for their primary source of income; 2) they must not be a beneficiary of the HSNP cash transfer program; and 3) they should be chosen because they are identified in their communities as being vulnerable pastoralists.

Targeting and selection of pastoralists is a task which is carried out by the County Governments, their departments of livestock extension, and the local community leaders. SDL does not have the staff or resources to be able to monitor the quality of the selection process. Every attempt is made to ensure that pastoralists are selected from communities throughout the county and that equal weighting is given to the numbers of pastoralists selected in each ward and village.

What ‘index’ does KLIP measure and why?
KLIP uses satellite data of vegetation cover to assemble an index of seasonal forage availability/scarcity, called the Normalized Differenced Vegetative Index (NDVI). NDVI was a natural choice for the KLIP product given that livestock in pastoral production systems depend almost entirely on available forage for their nutrition, and given that NDVI serves as a strong indicator of the vegetation available in the area for the livestock to consume.

NDVI also fits a number of the prerequisites required for a data source to serve as an insurable index: it is cheap (in this case free) to procure; neither the insurer nor the insured can feasibly manipulate it; it is an objective measure; and it is auditable. NDVI readings over an insurance unit and across a season are averaged, aggregated and standardized across time to derive the index.

How does KLIP know when to payout?
When the index signals that forage conditions have deteriorated to the point where animals are becoming malnourished, KLIP triggers payouts to enable the pastoralists to purchase supplementary feeds to protect their livestock assets against starvation. The ‘trigger level’ for the index—the threshold at which payouts must be made—is determined according to the degree of risk exposure coverage provided. At the GoK’s request, they are purchasing cover with the KLIP Trigger which opens the policy for a payout set at the 20th percentile of seasonal total forage availability; essentially this means that the contract pays out on average once every five seasons or once every two and a half years.

What payouts have been made by KLIP since launch in 2015/16
In 2015/16 KLIP precipitation levels in Turkana and Wajir were average in the short rains and there were no forage scarcity drought related payouts in that season. In the subsequent 2016 long rains, a small number of drought payouts were triggered in two Insured Units in Wajir, valued at KSh. 4.1 million.

In 2016/17, the short rainy season has experienced the worst droughts in the past 16 years as measured by the NDVI index. Claims payouts will be due to 12,064 pastoralists or 86% of the total of 14, 010 pastoralists who are protected under the Component 1 cover purchased by government. The total calculated payouts amount to KSh. 214,700.00 or an average of Ksh. 17,800 per beneficiary. The range in payouts is from a low of KSh. 1,400 per pastoralist to the maximum payout of KSh. 29,400 per beneficiary.

The APA-led pool of coinsurers will be settling these payouts in February 2017 to the 12,064 pastoralists, about two thirds of whom have individual bank accounts, or M-Pesa accounts thereby facilitating direct electronic transfer to their accounts. For the remaining one third, payments will be made by cheque in the name of the beneficiary. For these pastoralists, SDL is seeking the help of the county administrations in delivering the cheques to the pastoralists as quickly as possible.

Who are the key partners?
Government:
State Department of Livestock, Ministry of Agriculture, Livestock and Fisheries
Insurance companies:
APA Insurance Ltd.
UAP Insurance
CIC Insurance
Jubilee Insurance
Amaco Insurance
Heritage Insurance
Kenya Orient
Reinsurance partner:
Swiss Re
Technical Assistance partners:
World Bank Group
International Livestock Research Institute
Financial Sector Deepening


Record payouts being made by Kenya Government and insurers to protect herders facing historic drought

News from ILRI -

klip_cropped02

From left to right: Jimmy Smith, director general of the International Livestock Research Institute (ILRI); Andrew Tuimur, principal secretary in Kenya’s State Department of Livestock; and Willy Bett, cabinet secretary for the Kenya Ministry of Agriculture, Livestock and Fisheries during a press conference held on 20 Feb 2017 announcing payments to more than 12,000 pastoral households under the Kenya Livestock Insurance Program (KLIP) (photo credit: ILRI/Dorine Odongo).

More than Ksh214 million is on tap for 12,000 pastoral households in six counties of northern Kenya through innovative policies that use satellite imagery to trigger payments for feed, veterinary supplies and water.

As an epic drought desiccates fields and forages in the Horn of Africa, Government of Kenya officials, in partnership with Kenyan insurers, today announced payments to over 12,000 pastoral households under a breakthrough livestock insurance plan—one that uses satellites to monitor vegetation available to livestock and triggers assistance for feed, veterinary medicines and even water trucks when animal deaths are imminent.

To avert future losses, nearly Ksh215 million  (nearly USD2.1 million) in insurance payouts across six counties will be made by the end of Feb 2017 through the Kenya Livestock Insurance Program (KLIP). Payments are pegged to measurements of forage conditions made via satellite for each area, and will range from Ksh1,450 (USD14) per pastoral household in areas that have suffered modest losses to Ksh29,400 (USD284) in areas where drought is particularly severe. The average payment is around Ksh17,800 (USD172) per pastoral household, directly reaching about 100,000 people. Pilot projects that preceded the program established payment levels linked to the state of grazing lands, with the goal of providing enough money to help pastoralists keep their animals alive until rains returns.

‘This is the biggest livestock insurance payout ever made under Kenya’s agricultural risk management program and the most important as well, because without their livestock, pastoralist communities would be devastated’, said Willy Bett, Cabinet Secretary for Kenya’s Ministry of Agriculture, Livestock and Fisheries. ‘This insurance program is not just an effective component of our national drought relief effort. It’s also a way to ensure that pastoralists can continue to thrive and contribute to our collective future as a nation.’

smithandtuimur_cropped

Jimmy Smith, ILRI director general, and Andrew Tuimur, principal secretary in Kenya’s State Department of Livestock, confer during the KLIP press conference yesterday (photo credit: ILRI/Dorine Odongo).

Livestock are a major component of the Kenyan economy. Between 2008 and 2011, livestock losses in Kenya accounted for 70 per cent of the USD12.1 billion in damages caused by drought.

In response to these major droughts, Kenya’s Ministry of Agriculture, Livestock and Fisheries has developed KLIP with technical assistance from the International Livestock Research Institute (ILRI), the World Bank Group, and Financial Sector Development (FSD) Kenya, as part of their 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.

KLIP is intended to provide a safety net for Kenyan herders, who for centuries have grazed their animals across vast stretches of arid and semi-arid lands. KLIP began with two counties in the short-rains season of 2015, Turkana and Wajir, and now covers pastoralists in an additional four counties: Mandera, Marsabit, Isiolo and Tana River.

KLIP is based on the internationally recognized ‘Index-Based Livestock Insurance’ model, which was developed several years ago by a team of agricultural economists from ILRI, Cornell University, the University of California at Davis and the World Bank Group, working in close cooperation with pastoralist communities. The signature feature of this novel insurance scheme is the use of satellite data to generate an index for grazing conditions, so that payments are triggered when conditions degrade below a certain critical level. The index eliminates the need for insurance agents to be out in the field monitoring forage and animals, which, given the remote regions involved, would make livestock insurance logistically and financially impossible to provide.

In Feb 2017, APA Insurance, on behalf of the insurance consortium, will disburse most payments directly to pastoralists’ bank accounts or to accounts accessed via mobile phones—an increasingly popular and convenient way to conduct financial transactions in Kenya, especially in the country’s most remote areas. For those without accounts, cheques
will be issued.

‘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 Ashok Shah, Group CEO of APA Insurance. ‘Now, 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.’

Lovemore Forichi, Head of Agriculture Reinsurance Africa said, ‘This program is a role model for the rest of Africa and beyond. The government and its partners have brought together the latest technological and financial tools from a group of committed and innovative private sector players. The payouts prove that this program is delivering a financial safety net where it is needed. Having worked in this field across the globe, KLIP highlights Kenya’s pioneering role in providing drought protection for its people.’

klip_05_cropped

Kenya Agriculture Cabinet Secretary Willy Bett addresses a press conference announcing payments to more than 12,000 pastoral households under the Kenya Livestock Insurance Program (KLIP) (photo credit: ILRI/Dorine Odongo).

Currently, the Government of Kenya purchases cover on behalf of approximately 2,500 of the most vulnerable pastoral households in each of the six counties.

Kenyan officials are now working with colleagues in county governments to scale up the program and make KLIP coverage available to a wider range of pastoralists across all income levels.

‘These payouts demonstrate that KLIP works, and we now urge all pastoralists to make use of livestock insurance to cover themselves against drought. The government will look at ways to make this insurance accessible to all pastoralists’, said Dr Andrew Tuimur, principal secretary in the State Department of Livestock in the Kenyan Ministry of Agriculture, Livestock
and Fisheries.

The counties in Kenya targeted for KLIP payments are enduring one of the worst droughts to hit the Horn of Africa in a quarter century. The payments being dispatched this month are intended to help herders recover from the lack of precipitation during the so-called ‘short-rains’ period that ran from October to December 2016. If the drought continues during the ‘long-rains’ season, which usually runs from March to June, additional large payouts are likely.

In addition to the government-led consortium, other organizations have also been involved in delivering index-based livestock insurance for pastoralists. For example, Takaful Insurance of Africa, which launched the provision of a similar product in 2013, will this season be making payouts to over 2,000 households across six counties to the tune of close to Ksh10.5 million.

‘We are hopeful that we are writing a new chapter in the long and challenging history of one of the oldest forms of agriculture still practiced in the world today’, said Andrew Mude, a principal research scientist at ILRI whose contribution to the development of index-based livestock insurance earned him the 2016 Norman Borlaug Award for Field Research and Application. ‘It’s been a team effort’, Mude added. ‘This day would never have arrived without the partnership between the Government of Kenya, the KLIP Implementation Unit led by Richard Kyuma, private-sector players and a range of technical and development partners.‘

smithandpeopledailynewspaper_cropped

ILRI Director General Jimmy Smith (left) gives an interview to a journalist from The People Daily Newspaper at the KLIP press conference (photo credit: ILRI/Dorine Odongo).

Read more
The Standard (Kenya): Sh215m insurance payout offers relief to drought-hit pastoralists, 21 Feb 2017
Capital FM (Kenya): Pastoralists to receive Sh215mn in drought insurance payout, 20 Feb 2017
BBC News: In pictures: Kenyans share their dinner to save livestock, 19 Feb 2017
New York Times: On selling insurance (not lottery tickets) to Africa’s struggling (stargazing) livestock herders, 11 Nov 2016
Daily Nation (Kenya): Kenya to extend livestock insurance to 14 counties, 30 Aug 2016

More information
To request interviews with specific organizations or spokespeople, please reach out to the appropriate media contact below:

Ministry of Agriculture, Livestock and Fisheries
John Mwangi
Mobile: +254 722 582 248
Email: mbaumwangi@gmail.com

APA Insurance
Jackie Tonui
Head of Corporate Communications
Mobile: +254 722 415 619
Tel : +254 020 286 2000
Email: jackie.tonui@apollo.co.ke

World Bank
Keziah Muthembwa
Email: kmuthembwa@worldbank.org

International Livestock Research Institute (ILRI)
Nancy Moss
Mobile: +254 729 991 028
Email : nmoss@burness.com

Takaful Insurance of Africa
Amina Farah
Mobile: +254 723 131 405
Email: Amina.farah@takafulafrica.com

More about KLIP
KLIP, the Kenya Livestock Insurance Program, is a Government of Kenya-funded drought insurance program for vulnerable pastoralists located in the arid and semi-arid (ASAL) counties of Kenya. KLIP is insured by a pool of seven leading Kenyan insurance companies. It is a world leading insurance scheme that utilizes technology and innovative insurance technical to bring livestock insurance to those who need it the most.

Pastoralism in Kenya
Most people in the drylands of Eastern Africa (often referred to as the ‘Horn of Africa[) live in pastoral communities where life revolves around herding livestock such as goats, cattle and sheep across vast and remote grazing areas (or ‘rangelands’) in search of forage and water. Pastoralists regularly move hundreds of kilometers with their stock, and this model of food production enables communities in the Horn of Africa to produce food in an otherwise unyielding environment. Over 50 million pastoralists live across sub-Saharan Africa, and an estimated 20 million of these live in the Horn of Africa. Pastoralism is important also to national economies. About 90 per cent of the meat consumed and 40 per cent of the entire livestock economy in Kenya and Ethiopia is generated by pastoral communities. The value of exports of livestock and livestock products from the Horn of Africa now exceeds US$1 billion annually, with most of these exports sourced from pastoralists. But every three to five years, severe droughts in northern Kenya result in huge numbers of livestock dying, mainly because of starvation and lack of water. Between 2008 and 2011, Kenya’s economy suffered USD12.1 billion in damages due to drought, over 70 per cent of which was due to livestock losses. About 10 per cent of Kenya’s national livestock herd died over this period, leading to a loss of livelihoods for thousands of pastoralists who had to rely on government and donor relief programs. With the impacts of climate change, droughts in the Arid and Semi-Arid Lands (ASAL) of Kenya have in recent decades become more frequent, prolonged and severe, and pastoralists can no longer keep their animals alive by using traditional management practices centred around migration.

The case for livestock insurance
In northern Kenya, the average herding household holds 100 per cent of its productive assets in the form of livestock. On average, sales from livestock and livestock products constitute over 40 per cent of total household income. In comparison, close to 15 per cent of household income comes from food or cash aid. Drought-related livestock losses—caused by animals either starving to death or being sold-off for fear that they would otherwise perish—are the primary threat to pastoralists’ existence. Severe to catastrophic droughts, which account for 75 per cent of livestock deaths in the region, routinely leave pastoral communities destitute. During severe droughts in northern Kenya, starvation is the major cause of death of animals because of depletion of forage/grazing resources followed by lack of drinking water and diseases. During the 2011 drought, for example, herders in East Africa experienced livestock losses as high as 40 to 60 per cent. Livestock insurance can provide an incredibly valuable safety net by limiting drought-related livestock losses through early compensation that allows pastoralists to protect their assets before they start to die in large numbers. For livestock and agriculture in general, insurance is recognized across the globe as an essential hedge against the risks inherent to all forms of farming. Livestock keepers and farmers in the US, Europe, Latin America and India have access to various forms of insurance as a way to manage weather-related losses.

KLIP: Social protection through livestock insurance
In 2013 the incoming Jubilee government made a commitment to fund a drought insurance program for vulnerable pastoralists in the ASALs. The Government of Kenya (GoK) charged the State Department of Livestock, Ministry of Agriculture, Livestock and Fisheries (SDL-MALF) with developing the program and requested technical assistance from the World Bank Group (WBG) and its technical partners, the International Livestock Research Institute (ILRI) and Financial Sector Deepening (FSD).

KLIP is a public-private partnership between the GoK (through SDL-MALF) and a pool of seven Kenyan insurance companies, backed by expertise and financial support for a reinsurance partner and technical partners. KLIP builds on the experience of the ILRI designed Index-based Livestock Insurance (IBLI) program which is a voluntary retail forage availability drought index insurance policy underwritten by several insurers in the ASALs since 2010. KLIP is designed as a drought ‘Asset Protection’ cover which aims to make early payouts when natural grazing/forage resources are severely depleted to enable vulnerable pastoralists to purchase fodder and animal feed supplements to keep their core breeding animals alive until the drought has passed and grazing conditions return to normal. KLIP has two components:
1. Macro-level social protection cover for the most vulnerable pastoralist who are provided free insurance protection funded by government for five Tropical Livestock Units (TLUs) per pastoralist (termed a beneficiary), and
2. Voluntary retail sales to any pastoralist wishing to purchase KLIP drought cover. In order to make cover more affordable to pastoralists, the GoK is considering providing partial premium subsidies.

KLIP Component 1 is intended to complement the government’s other social protection programs such as the Hunger Safety Net Program in four counties (Mandera, Marsabit, Turkana and Wajir) and to contribute to the National Drought Management Agency’s drought risk management programs in the northern counties of Kenya.

KLIP: Progress to Date
KLIP’s first component was launched during the 2015 short rainy season (October–December) in Turkana and Wajir, covering a total of 5,013 pastoralists divided equally between both counties. During the 2016 short rainy season 2016, four additional counties (Mandera, Marsabit, Isiolo and Tana River) were added to the program with an average of between 2,000 and 2,500 pastoralists per county. KLIP has insured a total of 14,010 pastoralists across these six counties.

In 2015/16, KLIP incurred very small drought claims in two Insured Units in Wajir County. In the 2016/17 short rainy season, a very severe drought has affected much of northern Kenya and the KLIP policy has triggered drought payouts in 62 (88%) of the 70 Insured Units across the six counties, with total payouts valued at nearly KSh. 215 million being due to 12,064 pastoralists (86% of all insured pastoralists).

Frequently Asked Questions
Is livestock insurance a new concept?
Pasture drought satellite index insurance has been implemented for commercial cattle ranching in Spain, the USA, and Canada since the turn of the century. Based on these principles, ILRI designed the first satellite forage-drought index insurance cover for semi-nomadic pastoralists in northern Kenya in 2009 and then in Ethiopia starting in 2012. Both programs are voluntary retail sales to individual pastoralists. KLIP has built on the IBLI experience.

KLIP Component 1, however, represents a new approach to providing drought livelihood protection and drought resilience building to large numbers of vulnerable pastoralists who are too poor to buy insurance. It is a macro-level insurance cover purchased by the GoK which is the Insured policy holder and which has agreed to fund 100% of the component 1 premiums. Component 1 protects large numbers of vulnerable pastoralists (termed beneficiaries) in each county who are targeted and selected by the County Administrations and departments of livestock in collaboration with community leaders.

What does KLIP cover?
The sum insured is calculated on the basis of the costs of supplementary feed requirements to maintain one TLU for 12 months and is currently valued at KSh. 14,000 per TLU. Therefore, for each pastoralist who has protection for five TLU, the maximum value they will receive in the event that the policy triggers a 100% payout in an insurance year is 5 x KSh. 14,000 or KSh. 70,000 per beneficiary.

KLIP provides drought protection over two cover periods, the long rainy season from March to June, with 58% of the sum insured or Ksh. 40,600 per pastoralist allocated to this season, and the short rainy season from October to December, with 42% of the sum insured or KSh. 29,400 allocated to this second season. KLIP does not insure against the death of livestock. However, by making timely payouts during droughts it can help pastoralists to reduce mortality levels in their herds.

How are the KLIP Component 1 beneficiaries chosen?
Selection criteria include: 1) the pastoralist must own a minimum of 5 TLUs and depend upon livestock for their primary source of income; 2) they must not be a beneficiary of the HSNP cash transfer program; and 3) they should be chosen because they are identified in their communities as being vulnerable pastoralists.

Targeting and selection of pastoralists is a task which is carried out by the County Governments, their departments of livestock extension, and the local community leaders. SDL does not have the staff or resources to be able to monitor the quality of the selection process. Every attempt is made to ensure that pastoralists are selected from communities throughout the county and that equal weighting is given to the numbers of pastoralists selected in each ward and village.

What ‘index’ does KLIP measure and why?
KLIP uses satellite data of vegetation cover to assemble an index of seasonal forage availability/scarcity, called the Normalized Differenced Vegetative Index (NDVI). NDVI was a natural choice for the KLIP product given that livestock in pastoral production systems depend almost entirely on available forage for their nutrition, and given that NDVI serves as a strong indicator of the vegetation available in the area for the livestock to consume.

NDVI also fits a number of the prerequisites required for a data source to serve as an insurable index: it is cheap (in this case free) to procure; neither the insurer nor the insured can feasibly manipulate it; it is an objective measure; and it is auditable. NDVI readings over an insurance unit and across a season are averaged, aggregated and standardized across time to derive the index.

How does KLIP know when to payout?
When the index signals that forage conditions have deteriorated to the point where animals are becoming malnourished, KLIP triggers payouts to enable the pastoralists to purchase supplementary feeds to protect their livestock assets against starvation. The ‘trigger level’ for the index—the threshold at which payouts must be made—is determined according to the degree of risk exposure coverage provided. At the GoK’s request, they are purchasing cover with the KLIP Trigger which opens the policy for a payout set at the 20th percentile of seasonal total forage availability; essentially this means that the contract pays out on average once every five seasons or once every two and a half years.

What payouts have been made by KLIP since launch in 2015/16
In 2015/16 KLIP precipitation levels in Turkana and Wajir were average in the short rains and there were no forage scarcity drought related payouts in that season. In the subsequent 2016 long rains, a small number of drought payouts were triggered in two Insured Units in Wajir, valued at KSh. 4.1 million.

In 2016/17, the short rainy season has experienced the worst droughts in the past 16 years as measured by the NDVI index. Claims payouts will be due to 12,064 pastoralists or 86% of the total of 14, 010 pastoralists who are protected under the Component 1 cover purchased by government. The total calculated payouts amount to KSh. 214,700.00 or an average of Ksh. 17,800 per beneficiary. The range in payouts is from a low of KSh. 1,400 per pastoralist to the maximum payout of KSh. 29,400 per beneficiary.

The APA-led pool of coinsurers will be settling these payouts in February 2017 to the 12,064 pastoralists, about two thirds of whom have individual bank accounts, or M-Pesa accounts thereby facilitating direct electronic transfer to their accounts. For the remaining one third, payments will be made by cheque in the name of the beneficiary. For these pastoralists, SDL is seeking the help of the county administrations in delivering the cheques to the pastoralists as quickly as possible.

Who are the key partners?
Government:
State Department of Livestock, Ministry of Agriculture, Livestock and Fisheries
Insurance companies:
APA Insurance Ltd.
UAP Insurance
CIC Insurance
Jubilee Insurance
Amaco Insurance
Heritage Insurance
Kenya Orient
Reinsurance partner:
Swiss Re
Technical Assistance partners:
World Bank Group
International Livestock Research Institute
Financial Sector Deepening


Interview Seminar Invitation – Regional Program Leader -CCAFS

Latest ILRI announcements -

Regional Program Leader- CCAFS

You are invited to seminar presentations by two candidates of the position of Regional Program Leader –CCAFS.

This positon will link with other CCAFS Regional Program Leaders and Flagship Leaders to build a coherent global program. Key responsibilities include contributing to outcomes and impacts at sub-national, national and regional levels; contributing to strategic research publications; and resource mobilization.

Seminar Presentation Title:Climate change, agriculture and food security: your vision and strategy for a result-focused East Africa regional program.

Date: Monday 20thFebruary, 2017
Venue: JVC

Candidate 1: Sileshi Weldesemayat
Time: 11:00 – 11:45 am

Candidate 2: Dawit Solomon
Time: 11:45- 12:30 pm

Tea/coffee will be served, be seated by 10:55 AM

Below kindly find the connection details:-

Seminar-Climate change, agriculture and food security: your vision and strategy for a result-focused East Africa regional program

Monday, 20 February 2017

10:00 | Nairobi Time (Nairobi, GMT+03:00) | 4 hrs

Meeting number (access code): 842 704 888

Meeting password: 123456

Add to Calendar

When it’s time, join the meeting.

Join by phone

0800-051-3810 Call-in toll-free number (UK)

+44-203-478-5289 Call-in toll number (UK)

Global call-in numbers | Toll-free calling restrictions

 

 

Guide to lablab bean use in smallholder systems in Africa

Enhancing Livelihoods of Poor Livestock Keepers through Increased Use of Fodder: Project news -

This extension brief, by International Livestock Research Institute (ILRI) researchers and their partners in Zimbabwe, explains explains the best cultivation and management practices for lablab bean and its importance as a forage crop.

Lablab bean (Lablab purpureus), is a drought-tolerant twining legume native to tropical and sub-tropical areas of Africa. It can be grown as a single green manure crop or intercropped with maize or sorghum to improve soil fertility or grown as a cover crop to suppress weeds and to provide nitrogen-rich mulch in conservation agriculture.

In east and central Africa, an in parts of Asia, it is mostly used as a pulse crop and both the green pods and mature seeds can be consumed by humans.

Download the brief: The agronomy and use of Lablab purpureus in smallholder farming systems of southern Africa


Time registration

Latest ILRI announcements -

Dear all,

Just for keeping you informed, refreshing your memory, and answering some of your questions related to time registration:

· YES, time registration is still mandatory for all scientists, project staff and most research support staff (like CKM, RMG and now also EOHS)

· 2016 has been closed and can no longer be used to enter data. Time reports for 2016 are still available (go to: information pages/other reports)

· 2017 Is open for registration: you should be able to register to your 2016 activities and any new 2017 activities are being added at the moment and should be complete soon.

· Next month I will present our OCS roll out plan for all staff in the regions. This will include Time registration training for all regional staff (within coming months)

· As soon as regional staff is also writing time, we can do better completeness checks and the automatic reminders will be switched on again

· In order to make time registration a more useful tool for managers, the functionality will be enhanced as part of the Project Management Framework and include possibilities for entering remarks and time categories (Will inform you when it happens in Q2)

So please all, get your 2017 time registered as soon as possible and try to build a auto mechanism to fill your time each week! As supervisor, please also approve time each week

If you have any questions please let me know, if you would like to receive a refresher course, please write to the servicedesk. Can all be arranged

Thank you and enjoy your weekend!

 

Misja Brandenburg | Director Corporate Services

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