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 East African - - SPECIAL ADVERTISING - By Evans Ong­wae Spe­cial Cor­re­spon­dent The study is avail­able at http:// www.akin­sure.or.ke/im­ages/pdf/ Agri­cul­tur­alin­sur­ance­si­t­u­a­tion­al­anal­y­sis­p­re­sen­ta­tion.pdf

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.

Pic­ture: File

A gov­ern­ment pro­gramme where an­i­mals are bought and meat dis­trib­uted to fam­i­lies hit by the drought

Newspapers in English

Newspapers from Kenya

© PressReader. All rights reserved.