The objectives of KLIP are:

KENYA LIVESTOCK INSURANCE PROGRAMME (KLIP) GARISSA COUNTY STAKEHOLDER AWARENESS SENSITIZATION WORKSHOP HELD ON 10 th to 13 th DECEMBER AT HIDDING HOTEL IN GARISSA Introduction by Dr Richard Kyuma The Kenya Livestock Insurance Program (KLIP) is a Government of Kenya initiative in partnership with County Governments, private sector actors i.e. insurance companies with technical support from the International Livestock Research Institute (ILRI) and the World Bank Group. KLIP is a drought insurance program whose aim is to cushion pastoralists and agro-pastoralists located in the Arid and Semi-Arid Land (ASAL) Counties of Kenya against adverse effects of forage scarcity because of severe drought. KLIP utilizes technology and innovative insurance approaches to bring livestock insurance to those who need it the most. Currently the Government is targeting vulnerable members of the community, with a fully subsidized insurance cover. For sustainability of the livestock insurance scheme partial and voluntary component will be soon launched to willing pastoralist in preparation for full commercial/private insurance premiums. As a drought "Asset Protection" cover, KLIP aims to make payouts at the start of dry seasons just before natural grazing/forage resources are severely depleted to enable pastoralists purchase fodder, animal drugs and animal feed supplements to sustain their core breeding animals until the drought has passed and grazing conditions return to normal. The Program will be implemented in 14 selected counties populated with pastoral and agropastoral communities. Currently KLIP covers 8 Counties in Kenya s ASALs, namely; Wajir, Mandera, Turkana, Garissa, Isiolo, Marsabit, Samburu and Tana River. Expansion to the remaining counties is underway (West Pokot, Baringo, Lakipia, Kajiado, Narok and Lamu). Program Development Objectives: The overall objective of KLIP is to reduce the risks of livestock mortality emanating from drought and to build the resilience of vulnerable pastoralists for enhanced and sustainable food security. The livelihood support program is intended to enhance the capacity of pastoral communities to minimize weather related risks through provision of index based livestock insurance. The objectives of KLIP are: 1).To build the resilience of vulnerable pastoralists in the Arid and Semi-Arid Lands (ASALs) toward the consequences of drought by developing and applying index based insurance products in the provision of livestock insurance services to the vulnerable pastoralists; 1

2).To build capacities of the pastoral communities and stakeholders on the use of insurance for the reduction of weather related risks and rebuilding of livelihood support systems; 3)).To increase Public-Private-Partnerships (PPP) in the provision of index based livestock insurance to the vulnerable pastoralists whose livelihoods are dependent on livestock. This will be done by creating bling environment to private sector in order to provide insurance services in the ASAL s through innovative subsidy support mechanisms and use of county extension delivery systems to enhance awareness on insurance; and 4).To create linkages with pastoral livelihood support programs for enhanced coordination of programs. KLIP will closely coordinate with programs carrying out risk management interventions to develop synergies that lead to improved resilience building. The program does support coordination structures at national and county levels. Why livestock Insurance Frequent droughts(2-4 yrs) Severe drought lead to approximately 20% mortality of livestock 2008-2011 Total droght losses to Kenya economy Kshs 968.6 billion and reduction by 2.8% each year.72% of this loss related to livestock Among pastoral livestock communities the highest income share is sale of livestock which accounts for 40%. Yet livestock are the most vulnerable assets among the households Under the Big Four Agenda: Food security and nutrition pillar KLIP has developed strategies for attainment of food security and nutrition through the following activities Resilience building through insurance in the pastoral areas Promotion of PPP Insurance units partitioning WARDs have been subdivided into the Index Based Livestock Insurance units Example of Marsabit initially had 6 divisions but ended up with 13 units Questions Garissa has 30 wards were they paid the same amount during payouts Answers Payment was different because impact of drought varies across the Index based livestock Insurance units Areas located in upper places had a higher payout compared to areas located in lower places because the premiums for upper places is also higher compared to the lower areas A Functional Public Private Partnership Private public partnership is the most preferred mode of development. KLIP is being implemented under PPP. KLIP has the following partners 1 County govt, 2 National govt, 3 insurance bodies, 2

4 international institutions Roles of National and County Governments Creation of conducive policy and business environment Coordination Resource mobilization Capacity building for stakeholders Private sector mobilization Development of support infrastructure like sale yards, strategic feed store, ICT systems Role of County Governments Ext/outreach services Data collection and management Selection of insurance beneficiaries Aligning programs to complement livestock insurance Role of private Sector/Insurers/Reinsurers Provision of insurance cover Awareness creation Marketing Recruitment of voluntary cover Disbursement of payouts Discussion points Questions 1 Weather related issues ILRI to device a means of targeting uniform payout across the areas neighboring. Answer ILRI is developing a business model that can operate as an insurance product as a result of drought. Humanitarian point of view is different since it is no longer a business model 2 What is the relationship between ILRI and Insurance who funds ILRI Answer Mandate of ILRI is research but does not sell insurance products ILRI looked for a donor who will cushion the insurance loses Takaful and APA insurance ILRI support by donors such as World Bank 3 If the beneficiaries have to pay part of the money what is the benefit of the insurance company Currently it is the government which is paying premiums for the beneficiaries in order to protect assets 4 What is the consequences of default in payment Answer there is no default in an event that one does pay premium then the insurance agreement collapses Insurance protects you so that you do not go into losses CRITERIA FOR RECRUITMENT OF BENEFICIARIES FOR PREMIUM SUPPORT Discussion points Question 3

If beneficiary should not be in any other cash transfer scheme such as Hunger Safety Net Programme or other safety Net Programs what about fellows who are given Kshs 2,000 per month under the HSNP should they not insure their livestock under KLIP Question Normally targeted beneficiaries are very poor and it may not be possible for him or her to pay premiums. KLIP pays for premiums at 100 percent KLIP component 2 will have a partial subsidy contribution of premium from beneficiary and government Discussion points We need to differentiate between vulnerable pastoralist and destitute pastoralist Vulnerable pastoralists refers to individuals who are likely to be affected by the calamities and they are prone to attacks Destitute pastoralists refers to individuals who have already been affected by the calamities and are in dire need to arrest the situation Requirements for the KLIP from the beneficiary Identified or selected beneficiaries should fill the form as follows: County Full name Identity card Number (Identity card numbers must be matching in order to verify) Livestock Units Bank details (When doing registration encourage the beneficiary to open a bank account but in some places like balambala there are no banks) Mpesa registration of a relative s mobile number. Could be a beneficiary has a telephone line but it is not registered The sole beneficiary doesn t have a wife and he is extremely sick. Then we can refer to the next of kin Are we supposed to wait until we reach the red line in order to trigger payouts? KLIP is not a solution to all the drought problems it is just one of the interventions Definition of a household Homestead a place with several households Location for insurance purposes Sub County Ward Village NDVI/IBLI unit also known as Unit Area of Insurance or Cluster Next of Kin ( Name should be clear indicate ID No, Mobile number relationship, beneficiary next of kin) Indicate bank details of the next of kin 4

Challenges Lack of network Identification Political interference Insecurity Infrastructure poor road communication Challenges for KLP Out of 33 million Garissa Mpesa received 23million Bank transfer Kshs 1 million outstanding money not disbursed is Kshs 8 million Garissa County Blambala have outstanding of 3.2million (122 people) incorrect Mpesa account, mismatching names, bank account details Dadaab bank outstanding 1.1 million For people BENEFICIARIES Already insured Avoid conflicts Duplicates fill gaps in the sub counties Deceased cases Normal system Missing beneficiaries local officials in participatory appraisal, organized form, fill gap Targeting everybody to take his/her role A monitoring system for payouts have been developed as shown in the matrix below: Monitoring for pay-outs 2000 No Beneficiaries Mpesa Bank Transfer Outstanding 1 285 2 285 3 285 4 285 5 285 6 285 7 290 Conclusion and recommendations It was agreed that data for the various beneficiaries be cleaned and areas where there is a problem of Mpesa number and Identity card mismatch be addressed. Individuals who have problem with bank accounts were advised to transfer to Mpesa which can easily be traced and rectified On Persons who are deceased it was proposed that the next of kin be identified and ratified by the area chief along with ward representative and livestock officer incharge of the area 5

Annex :1 KENYA LIVESTOCK INSURANCE PROGRAM REGISTRATION FORM COUNTY. BENEFICIARY: Name:... ID. NO: Sex (Male[ ]/Female[ ]) LIVESTOCK UNITS OWNED: No. of Cattle: BANK DETAILS No. of Sheep: No. of Goats: No. of Camels: No. of Donkeys: Bank:. Branch:.... A/C No:.... Mobile No:.... Mobile Money (MPesa, Airtel, Other). LOCATION FOR INSURANCE PURPOSES Sub-County NEXT OF KIN Ward:... Village: UAI(cluster). Name:... ID. No.:.. MOBILE NO:.... Relationship with Beneficiary: NEXT OF KIN BANK DETAILS Bank:. Branch:.... A/C No:.... 6

Annex 2: CRITERIA FOR RECRUITMENT OF BENEFICIARIES FOR PREMIUM SUPPORT FOR THE KENYA LIVESTOCK INSURANCE PROGRAMME The following is the proposed criteria that should be followed during the selection of beneficiaries for the livestock insurance scheme: i. The pastoralist should have livestock and own a minimum of 5TLU; ii. The beneficially should not be on cash transfer from the Hunger Safety Net Program and other National Safety Net Programs; iii. The pastoralist should have a bank account or a means for cash transfer (e.g. MPESA) or make arrangements to open such an account; iv. There should be equity in distribution of proposed beneficiaries within the county; v. In selecting the beneficiaries, there should be participation and agreement of key stakeholders including the MCA of the relevant Ward and Ward Administrators/Chiefs where appropriate and acceptable. The local livestock production personnel will lead the process of registration of the beneficiaries; and vi. The proposed beneficiaries should be prioritized- the very poor of the livestock owners in the community through appraisal by members of the community, officials of the county, livestock and the MCA 7

Annex 3: PROGRAMME MINISTRY OF AGRICULTURE AND IRRIGATION STATE DEPARTMENT FOR LIVESTOCK Kenya Livestock Insurance programme Kenya Livestock Insurance Program Capacity Building Workshop (9 th to 12 th December 2018) Programme at Garissa County Day /Date/Time Activity Participants Presenter Day 1: Monday Travelling to Garissa KLIP Team 2 nd July 2018 Day 2: Tuesday 3 rd July 2018 8.30-9.00 Arrival and Registration All SDL Secretariat 9.00-9.30 Introductions Workshop objectives All KLIP 9.30-10.00 Official opening All CECM/DLP 10.00-11.00 Health break All 11.00-12.00 KLIP Background and Milestones All KLIP 12.00-01.00 General Overview of Index Based All KLIP Insurance 01.00-02.30 Health break All 02.30-3.30 Insurance Units Partitioning All KLIP 03.30-04.30 Roles and Responsibilities of Partners All KLIP Day 3: Wednesday 4 th July 2018 08.30-09.30 Recap All Sub-County staff 09.30-10.30 Data Management presentation All KLIP 10.30-11.00 Health Break All 11.00-12.00 Data management All KLIP 12.00-01.00 Data Management and Pay-outs All KLIP/CDLP 01.00-02.00 Health Break All 02.00-03.00 Way forward All KLIP 8