The role of insurance in attaining food security
A study undertaken by the Association of Kenya Insurers on agriculture insurance shows that only three out of 10 farmers are aware of the product. Out of the 30 per cent that are aware, the major impediment to accessing insurance cover is the cost of insu
THE MAIN OBJECTIVE OF Every INSUrANCE contract Is to give FINANCIAL security AND PrOTECTION to THE INSUrED FrOM UNCErTAINTIES. Agriculture, BOTH LIVESTOCK AND crop, Is A rIsky venture, MOrE so crop Agriculture WHICH MAINLY rELIES ON rAINFALL. WITH THE SIGNIFICANT CLIMATIC CHANGES that we HAVE WITNESSED OVEr THE past FEW years, A growing POPULATION AND SHrINKING FArMLANDS, It Is CrITICAL that OTHEr AVENUES OF ENSUrING FOOD security ArE sought.
Agriculture INSUrANCE Is ONE such SOLUTION As It OFFErS rEspite to FArMErS WHEN crops FAIL Or WHEN ANIMALS DIE. WHEN FArMErS, ESPECIALLY SMALL to MEDIUM SCALE FArMErS, LOSE crop Or LIVESTOCK, It wipes Out THEIr source OF INCOME AND MANY FIND It EXTrEMELY DIFFICULT to FULLY rECOVEr. THESE rIsks ALSO DIMINISH BANKS’ Appetites to LEND to FArMErS to IMPrOVE THEIr FArMING TECHNOLOGY AND productivity.
A study UNDErTAKEN By THE ASSOCIATION OF KENYA Insurers ON Agriculture INSUrANCE shows that ONLY THrEE Out OF 10 FArMErS ArE AWArE OF THE product. Out OF THE 30 per cent that ArE AWArE, THE MAJOr IMPEDIMENT to Accessing INSUrANCE cover Is THE cost OF INSUrANCE PrEMIUM.
FOOD security AND NUTrITION Is ONE OF THE ArEAS OF Focus By THE GOVErNMENT FOr THE Next FIVE years AND rIghtly so, GIVEN It Is THE MAINSTAY OF THE KENYAN ECONOMY AND East AFrICA At LArGE.
THErE ArE ALrEADY ONGOING EFFOrTS By THE GOVErNMENT with rEGArD to Agriculture INSUrANCE. THE Agriculture SECTOr DEVELOPMENT Strategy 2010-2020 PrOVIDES FOr THE AMPLIFICATION OF THE NATIONAL Agricultural AND LIVESTOCK INSUrANCE policy.
IN LINE with THE strategy, THE GOVErNMENT IN PArTNErSHIP with A CONSOrTIUM OF INSUrANCE COMPANIES LAUNCHED THE KENYA LIVESTOCK INSUrANCE POLICY (KLIP) IN July 2014. THE PrOGrAMME PrOVIDES pastoralists IN 14 counties IN THE ArID AND SEMI-ArID LANDS (ASAL) with INSUrANCE PrEMIUM SUBSIDIES FOr cows, goats, SHEEP, DONKEYS AND CAMEL. SATELLITE DATA Is used to ESTIMATE THE AVAILABILITY OF pasture ON THE GrOUND AND triggers payouts to pastoralists WHEN AVAILABILITY FALLS. IN 2017, THE GOVErNMENT PAID Out KSH319 BILLION ($319M) to 11,000 pastoralists WHICH went towards purchase OF ANIMAL FEEDS, water PrOVISION, PrOCUrEMENT OF ANIMAL HEALTH services Or MOVEMENT OF ANIMALS to ArEAS with BETTEr FOrAGE to CUSHION THEM AGAINST SEVErE STArVATION AND POSSIBLE DEATHS.
IN FEBrUArY 2016, THE GOVErNMENT ESTABLISHED THE KENYA Agricultural INSUrANCE AND RISK MANAGEMENT PrOGrAMME to cover MAIZE AND WHEAT IN FIVE counties with A PLAN to rEACH 33 counties By 2020. FArMING ArEAS ArE DIVIDED INTO INSUrANCE units AND IF AVErAGE PrODUCTION IN ONE OF THE units FALLS BELOW A CErTAIN THrESHOLD (INDEX), ALL INSUrED FArMErS IN THE unit rECEIVE A payout.
Agriculture INSUrANCE Is A Necessary INTErVENTION IN THE GOVErNMENT’S DrIVE to ACHIEVE FOOD security AND NUTrITION. IN THE study UNDErTAKEN By AKI, THErE ArE HIGHLIGHTS OF THE NUMErOUS NGOS that ArE using INNOVATIVE CHANNELS to PrOVIDE FArMErS with INSUrANCE As A rISK MITIGATION MEASUrE. PUBLIC PrIVATE PArTNErSHIPS, As EXEMPLIFIED By THE PrOGrAMMES ALrEADY rUNNING, WILL go A LONG way to PrOVIDE INSUrANCE to FArMErS.
A government programme where animals are bought and meat distributed to families hit by the drought