It was a joyous event as pastoralists from the Muslim religion in Wajir were compensated for drought-generated losses they incurred between late 2013 and March 2014. In a momentous event attended by the who’s who in the County as well as big names in the donor community, 101 pastoralists (71 men and 30 women) received cheques amounting to a total of Ksh 500,000 through the sharia compliant Insurance policy known as Index-Based Livestock Insurance (IBLI). The IBLI policy is offered by Takaful Insurance of Africa (TIA) and is an index-based insurance (IBLI) product usually awarded to farmers as payouts when they incur losses above a certain percentage.
This payout event was held on 25th March and was graced by the Governor Ahmed Abdulahi, and Senator Hassan Abdirahman Ali among other county officials. The donor community was represented by the Australian High Commission H.E, Geoff Tooth, the Head of DFID Kenya, Lisa Phillips and the Head of Sector European Commission Dominique Davoux.
In his speech, Takaful Insurance Chief Executive Officer Mr Hassan Bashir said that IBLI should be prioritized by pastoralists because it protects them from natural hazards which man cannot control.
IBLI uses satellite imagery to gather required information which is fed into an algorithm that predicts livestock losses. Accounted loss that is beyond a 15 percent trigger level warrants compensation.
Normally, Wajir experiences acute droughts, leading to the massive losses in livestock which are usually pastrolists’ main income generating activity as well as source of food. At such times of drought, pastoralists have had no option but to sell their herds to brokers at a throwaway price or watch their cattle die. For a County whose livestock sector is worth Ksh 46 billion, the significance of such losses can be felt throughout the country.
Kenya Markets Trust (KMT) together with its partner Mercy Corps was responsible for ground level facilitation of insurance uptake by carrying out community sensitization activities. KMT is also been supporting TIA to develop marketing strategies on the IBLI product to increase awareness and thus broaden its reach. This is one of KMT’s key interventions in Wajir in addition to facilitating increased access to animal health inputs to ensure quality animal health.