• Constant improvements to data processing, contract design and parameters.
• Scoping studies and needs based action research to understand feasibility of IBLI in new regions, map
distribution channels of products and services and validate insurance product value.
• Crowdsourcing of market information and rangeland vegetation to improve market functioning and
vegetation monitoring in the rangelands.
• Other research on essential service access and demand, understanding systems of service delivery and
institutional frameworks in the pastoral economy.
• Developing and creating demand - to catalyze informed demand through consumer awareness, education and extension
towards market based solution in the Arid and semi –arid lands (ASAL) for IBLI.
• Supply Chain and Operation Management - building the market, innovations in structures and institutions for sales
delivery, platforms for providing insurance in a sustainable manner.
• Capacity Development - building capacity of the service providers, agents, brokers through digital and traditional
education methods; strengthening capacities of Government of Kenya for scaling and creating enabling policy
environment.
• Significant activities - Community dialogue, innovation challenge, technical support for the KLIP program: development
of the training strategy, the training curriculum and the training of trainers through mLearning and eLearning methods.
Motivation
Market and Capacity Development
Drivers of Change in Pastoral Systems
• Drought is a covariate shock that erodes livestock assets making households fall into poverty traps.
• Pastoralists have few available strategies to manage and cope with livestock mortality risk and
traditional risk sharing arrangements are proving insufficient in the face of more frequent drought.
• Post-shock responses by governments and international aid agencies are inefficient and often too
late.
• Hence the effort to developing risk management instruments that are both feasible, commercially
viable and potentially effective in reducing poor pastoralists’ uninsured risk exposure.
Pictures
Contract Design
• Design – Contracts protect pastoralist against drought-related livestock losses.
Contract holders receive payouts when forage conditions deteriorate below a
certain historical level as recorded by satellites, through the Normalized
Differenced Vegetation Index (NDVI).
• Science – Research has driven improvements to the contract parameters. The
contract has moved from an asset replacement logic to an to asset protection
logic.
• Technology – Improved remote sensing data and processing algorithms; with
World Bank developed powerful design and rating tool for both asset
protection and replacement contracts.
• Production Outcomes: Increases investments in maintaining
livestock; increases total and per Tropical Livestock Unit (TLU)
income from milk.
• Behavior outcomes: 36% reduction in likelihood of distress livestock
sales, especially (64%) among modestly better-off HHs (>8.4 TLU);
25% reduction in likelihood of reducing meals as a coping strategy,
especially (43%) among those with small or no herds.
• Flexible safety net: IBLI seemingly responsible for reducing reliance
on the most adverse behaviors undertaken by different groups in the
community.
Behavioural Change and Welfare Impacts
Policies purchased by individuals Policies purchased by the GoK
through KLIP
Acknowledgements: The IBLI project would like to thank its partners for their support.
Contact Persons
Rupsha Banerjee: B.Rupsha@cgiar.org
Francesco Fava: f.fava@cigar.org
Nathan Jensen: n.jensen@cgiar.org
This document is licensed for use under the Creative Commons Attribution
4.0 International Licence. September 2018