Agriculture ministry seeks bids for livestock insurance cover

A plan to introduce insurance cover for livestock farmers in arid and semi-arid areas is underway, as the government moves to cushion them from losses incurred due to adverse weather.

The Ministry of Agriculture, Livestock and Fisheries on Monday asked insurance firms to place bids to provide cover for the 2014/2015 financial year. Interested firms have until September 2, to express interest.

“In order to cushion pastoralists against loss of their livestock as a result of drought, the ministry has designed an insurance scheme that will use satellite generated weather-based indices for the purposes of insuring livestock in arid and semi-arid lands of the country,” it said in an advertisement.

The programme will initially be rolled out in Turkana and Wajir before being spread to other parts of the country in the 2015/2016 financial year.

The ministry noted that drought had become frequent and severe, creating challenges to households that rely on livestock as the source of livelihood.

The ministry will be the insurance holder, but in case of drought, the payment will be made directly to individuals.

CUSHION PASTORAL COMMUNITIES

“The main objective of the scheme is to cushion pastoral communities against drought-related loss of livestock.”

Interested firms are required to demonstrate how they intend to develop the necessary infrastructure and capacity to offer livestock products in the two counties before extending it to other areas.

The companies bidding should provide their profiles and evidence of prior involvement in livestock insurance.

Drought in the arid and semi-arid areas has often wiped out large herds of cattle, leaving many families poorer. The government has been providing restocking funds.

Most people in arid and semi-arid areas rely on livestock.

Livestock insurance has been a major campaign issue by various political parties, as it is popular with the communities in arid areas.