Country Profile - Kenya

Providing agricultural insurance (livestock and crop) is one of the top priorities of the government of Kenya. Agriculture forms a major part of the Kenyan economy, and many households rely on agriculture for their livelihoods. But agricultural production in Kenya is highly vulnerable to natural hazards. According to the government, livestock losses between 2008 and 2011 accounted for 70 percent of the US$12.1 billion in damages caused by drought.

In October 2015, the government launched the Kenya Livestock Insurance Program (KLIP) in two counties to protect pastoralists against climatic shocks. In March 2016, it launched crop insurance Area Yield Index Insurance (AYII) in three countries for semi-commercial maize farmers. The Kenyan government has plans to expand both programs: the goal is that by 2020, livestock insurance will be available in the remaining 12 counties in Kenya’s arid and semi-arid lands (ASAL) and will protect about 65,000 vulnerable pastoralists; and that crop insurance will cover about 87,000 farmers