Research Objectives
1. To measure the individual impacts of REAP and KLIP-like insurance subsidies on the extent and depth of poverty.
2. To compare those impacts to those of a package that combines both.
3. To identify the optimal implementation design for most cost-effectively meeting each program’s mission by:
i. Testing the efficacy of different premium subsidy structures for increasing IBLI uptake, and
ii. Evaluating the economic and social spillovers of the REAP program within communities.
4. To test ways for making IBLI insurance relevant to women who are directly & indirectly exposed to drought risk.
Contact Persons
Nathan Jensen: n.jensen@cgiar.org
Stephen Karuntimi Stephen.Karuntimi@bomaproject.org
Michael Carter mrcarter@ucdavis.edu
This document is licensed for use under the Creative Commons Attribution
4.0 International Licence. September 2018
Motivation
To assess the impact of two pioneering interventions that should synergistically interact to sustainably reduce poverty and
vulnerability amongst households in northern Kenya.
Research Design
Sampling: A stratified random sample of 1,875 community-identified poor and vulnerable
households containing a female adult in northern Samburu County.
Treatment Arms:
1. Control: Poor and vulnerable households with no encouragement to purchase IBLI.
2. IBLI: Poor and vulnerable households receive a premium discount for IBLI.
3. REAP: Poor households have the opportunity to participate in the REAP program but who receive with
no encouragement to purchase IBLI.
4. REAP + IBLI: Poor households have the opportunity to participate in the REAP program and receive a
premium discount for IBLI.
Interventions
Index Based Livestock Insurance (IBLI)
• Insurance policies make payments when forage conditions are much worse than normal to protect households from drought.
• Policies are sold by Takaful Insurance of Africa, a local insurance company, and reinsured in international markets.
• The GoK is also making IBLI transfers to 18,000 targeted households under the Kenya Livestock Insurance Program (KLIP).
Rural Entrepreneur Access Program (REAP)
• The program aims to help poor women graduate from poverty by helping them start sustainable businesses.
• Eligible women are selected through community wealth ranking followed by household-level validation.
• The program facilitates the formation of 3-women business groups that are the foundation of each intervention.
Can Asset Transfer & Asset Protection Policies
Alter Poverty Dynamics in Northern Kenya?
Allocation of Surveyed Participants Across Treatment Arms
Wealth Group Control IBLI Only REAP Only REAP + IBLI Total
Poor 407 405 350 340 1,502
Vulnerable 186 187 * * 373
Better off * * * *
Total 593 592 350 340 1,875
* Out of the sampling frame.
.
Workplan
Project Timeline
2018 2019 2020 2021 2022
J M M J S N J M M J S N J M M J S N J M M J S N J M
ILRI
• Baseline Survey x x
• Coupon Distribution x x x x x x
• Midline Survey x x
• Endline Survey x x
BOMA
• BOMA targeting x
• REAP wave 1 * E ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ G
• REAP wave 2 * E ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ G
• REAP wave 3 * E ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ G
• REAP wave 4 * E ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ G
• REAP wave 5 * E ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ G
TIA
• TIA Sales Window x x x x x x x x x x x x x x x x
* (E= Enroll, ~ =Participate, G=Graduate)
Food security (7-days recall) is extremely
high in the project participants
3 types of discount coupons provide different types of
subsidies to participants: flat-rate (KLIP), increasing & falling
Participant Characteristics (Baseline)
• All participants are women
• 87% of participants have no formal education
• 23% (25%) of households are nomadic (partially sedentary)
• Average household herd size is 2.2 TLUs
• > 65% of reported income is related to livestock
• > 90% of households live on income < $1/person/day
Drought is the leading cause of
livestock mortality in the region
IBLI purchases by study households in 2018
No. of
Policies
Coverage
(KSH)
Coverage
(TLUs)
Premium Discount
Client
Contribution
Standard sales 156 4,232,000 302 504,000 0 504,000
Coupon-related sales 282 12,659,000 904 1,488,000 1,278,000 210,000
Total 438 16,891,000 1,206 1,992,000 1,278,000 713,000