The Kenyan government borrowed KES 16.08 billion to finance livestock insurance in the year leading up to April 2022, according to the State Department for Livestock Development. Jonathan Mueke, Principal Secretary for Livestock, revealed this information during a briefing with the National Assembly’s Debt and Privatization Committee.
The funds were secured from the World Bank under the De-Risking, Inclusion, and Value Enhancement of Pastoral Economies (Drive) Project at an exchange rate of 114.87 against the dollar. The project, part of a broader Horn of Africa initiative, is being implemented in Kenya, Ethiopia, Somalia, and Djibouti. It aims to build resilience to climatic shocks, facilitate trade, and support value chains in the region.
“In Kenya, the project targets 21 arid and semi-arid lands (ASAL) counties where pastoralism is predominant, and drought insurance for livestock is viable,” said Mueke. These counties include Turkana, Marsabit, Isiolo, Laikipia, Mandera, Wajir, Garissa, Tana River, Taita Taveta, Kwale, and Lamu, among others.
The Drive project has a budget of KES 8.625 billion for its first component, which focuses on providing subsidized livestock insurance premiums, promoting financial savings with bonuses, and managing digital payments. “The project’s objective is to protect pastoral economies against drought risk, increase financial inclusion of pastoralists, and better connect pastoral markets,” Mueke added.
The Kenya Development Corporation (KDC) is overseeing the second component of the project, with a budget of KES 4.595 billion. This component is geared toward promoting livestock value chains, upgrading infrastructure, and de-risking facilities to attract private sector investment.
Mueke further highlighted that since the project’s inception in 2022, livestock insurance sales have been conducted across 12 counties, benefiting 887,546 pastoralists and their dependents. Additionally, the project has facilitated market linkages, with 424 groups comprising 20,799 members mobilized and trained.
“The value of livestock and livestock products traded by pastoralists due to the project amounted to KES 13.21 billion ,” Mueke reported. The initiative has also mobilized private capital worth KES 1.018 billion to sustain private investment in Kenya’s pastoral sector.
