index based livestock insurance€¦ · executive seminar on index based livestock insurance sarova...

Executive Seminar on

Index Based Livestock Insurance

Sarova Whitesands Hotel, Mombasa, Kenya

Seminar Report

17 & 18 April 2018

Executive Seminar for Members of the Kenyan Parliament

19 & 20 April 2018

Executive Seminar for the National Treasury of Kenya & County Officials

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Table of Contents

Acknowledgements ............................................................................................................... 3

About the Organizers ............................................................................................................ 4

Contact Details and Homepage of the Seminar ..................................................................... 4

Executive Summary .............................................................................................................. 5

1 Background ...................................................................................................................... 8

2 Highlights of the Seminars ...............................................................................................10

2.1 Executive Seminar for Members of the Kenyan Parliament, 17 & 18 April ...................10

2.1.1 Day 1 - Tuesday, 17 April ................................................................................10

2.1.2 Day 2 - Wednesday, 18 April ...........................................................................16

2.2 Executive Seminar for the National Treasury and Planning

& County Officials, 19 & 20 April ........................................................................................20

2.2.1 Day 1: Thursday, 19 April ................................................................................20

2.2.2 Day 2: Friday, 20 April .....................................................................................23

3 Decisions of the Seminar .................................................................................................25

3.1 Executive Seminar for Members of the Kenyan Parliament .........................................25

3.2 Executive Seminar for the National Treasury and Planning & County Officials ............25

4 Next Steps .......................................................................................................................30

5 Annexes...........................................................................................................................32

5.1 Annex 1: Agendas .......................................................................................................32

5.2 Annex 2: Participants ..................................................................................................39

5.3 Annex 3: Speakers ......................................................................................................46

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Acknowledgements

The organizers would like to express their gratitude to the Ministry of Agriculture and Irrigation

of the Republic of Kenya for the kind support in convening the seminars. We are particularly

thankful to Hon. Mwangi Kiunjuri, Cabinet Secretary, Dr. Andrew Tuimur, Chief Administration

Secretary, Harry Kimtai, Principal Secretary, Julius Kiptarus, Director of Livestock Production,

Vincent Githinji, Senior Deputy Director of Livestock Production, and Godfrey Kiptum, Ag. CEO

& Commissioner of the Insurance Regulatory Authority.

Furthermore, a special thanks goes to all of our distinguished speakers and session facilitators:

Barry Patrick Maher (World Bank Group), James Sinah (World Bank Group), Dr. Andrew Mude

(International Livestock Research Institute - ILRI), Duncan Collins Khalai (ILRI), Hassan Bashir

(Takaful Africa Group), Ashok Shah (APA Insurance), Charles M. Wambua (APA Insurance),

Robert Kuloba (Insurance Regulatory Authority), Isabel Joy Ochieng (National Treasury and

Planning of Kenya), Abdikarim Daud (Kenya Markets Trust) and Priscilla W. Muiruri (Ministry

of Agriculture and Irrigation).

The event was co-organized by KLIP program coordination office, in particular Dr. Richard

Kyuma, Tom Kinara, David Mwania and their team, and the project Alliance on Climate Risk

Transfer Solutions, a collaboration of Swiss Re Ltd. and the Deutsche Gesellschaft für

Internationale Zusammenarbeit (GIZ) under the develoPPP.de program funded by the German

Federal Ministry for Economic Cooperation and Development. In addition, the organization

team included ILRI and The World Bank Group. Moreover, as a consultant, Stanley Machogu

Miyogo provided extensive services for the logistical management, the facilitation of the

attendance of the participants as well as further support to the workshops.

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About the Organizers

The Kenya Livestock Insurance Program (KLIP) is a national initiative of the Government of

Kenya, led by the State Department of Livestock with technical assistance provided by the

World Bank Group and ILRI in partnership with private insurance companies. The Ministry of

Agriculture and Irrigation plays a central role in ensuring the success of the program. The

fundamental goal and purpose of the Ministry is to conserve, protect and manage agricultural,

livestock and fisheries resources for socio-economic development.

The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH is a federal

enterprise that supports the German government in achieving its objectives in international

cooperation for sustainable development. The Swiss Re Group is a leading wholesale provider

of risk transfer solutions. GIZ and Swiss Re through their develoPPP.de Alliance on Climate

Risk Transfer Solutions collaborate with governments to build technical capabilities and assist

them in identifying and accessing suitable instruments for climate risk transfer instruments.

Contact Details and Homepage of the Seminar

For more information about the seminar or the Alliance on Climate Risk Transfer Solutions,

kindly contact us on [email protected] or visit the event homepage under

https://mombasa-2018.climate-risk-transfer.org, where you will also find all presentations of

the workshop.

mailto:[email protected]

https://mombasa-2018.climate-risk-transfer.org/

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Executive Summary

Pastoralists in Kenya are at the forefront of climate change, with extreme weather posing a

potentially fatal threat to livestock. The impacts of drought on livestock threaten to cause

setbacks to the overall economy and the livelihood of pastoralist communities if adequate

protection and response measures are not taken.

To address this challenge, the Kenyan Government together with the private insurance sector

started implementing the Kenya Livestock Insurance Program (KLIP) in 2014. KLIP is an index-

based livestock insurance program that uses satellite technology to protect pastoralists in the

remote, arid and drought-prone rangelands of Kenya from the impacts of extreme weather.

The program currently covers close to 90,060 livestock units, and has made payouts of more

than KSh 700 million have been made to 32,000 pastoralists since inception.

In order to support this commendable effort and the successful operation of KLIP, the German

development cooperation GIZ (previously GTZ) and the Swiss Reinsurance Company (Swiss

Re) through their develoPPP.de project Alliance on Climate Risk Transfer Solutions combined

efforts with KLIP management in order to organize two executive seminars on index based

livestock insurance. The first event targeted policy makers (17-18 April) and the second event

targeted county governments and key technical staff at national level (19-20 April). In addition

to the State Department of Livestock, GIZ and Swiss Re, the organizing team of the seminars

featured experts from the International Livestock Research Institute (ILRI) and the World Bank

Group, both key institutions for the development and operation of KLIP.

The first seminar (17-18 April) was designed for Members of Parliament with representation

from the Agriculture and Livestock, Appropriations and Budget and Implementation

committees, as well as members of the Senate, who are part of the Agriculture and Livestock

Committee. In terms of content, the seminar provided:

An understanding of the technical and operational design of KLIP,

insights into the role of the private insurance sector,

findings of recent impact studies conducted on KLIP and lessons learned, as well as

an overview of the next steps on the program and the required support.

The seminar provided the opportunity for Members of the Kenyan Parliament to discuss

critically the state of the program. Furthermore, the Cabinet Secretary Ministry of Agriculture

and Irrigation provided a special acknowledgement for KLIP. He emphasised the significant

benefit offered to pastoralist communities where the program is active. However, he also stated

the challenges, particularly on the inadequate budgetary support. He announced that the

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Ministry would start supporting partial voluntary cover to help the program in graduate its

beneficiaries from the fully government funded initial phase to self-sustaining commercial

cover.

The participants of the first workshop agreed on the following points:

1. Funding

a. The Members of Parliament agreed that the budget committee would support the

budgetary allocations for KLIP when the ministry statements are brought to

parliament

b. The next budget proposals from KLIP through the State Department of Livestock

should actively be coordinated with the parliamentary departmental committees

2. Policies and Regulations on Index-Based Livestock Insurance

a. The Insurance Regulatory Authority (IRA) of Kenya has made regulatory proposals

on index-based insurance that will be brought to the house of parliament for

deliberations. Members of Parliament promised to support the proposals to amend

the Insurance Act

3. County engagement and Awareness creation on KLIP

a. The Members of Parliament and other leaders from the Arid and Semi-Arid Lands

(ASAL) counties should be sensitised about KLIP for more support in

Parliament/county assemblies and at their constituencies

b. Other opinion leaders such as chiefs, women group leaders, religious leaders and

all gate keepers in the community should be sensitised on KLIP to improve on

awareness and uptake

c. The County Agricultural Extension Services should be used for KLIP

implementation

d. Local FM radio stations should be used for awareness creation

The second seminar (19-20 April) followed the initial one back-to-back and targeted technical

officers responsible for disaster risk management and budgeting in the National Treasury and

Planning of Kenya and county officials from the different counties where KLIP is operating. In

addition to the topics covered under the first seminar, the event featured:

An overview of the financial instruments currently being used by the National Treasury

and Planning for disaster risk financing, presented by the Financial and Sectoral Affairs

Department, and

A working group session on follow-up steps with a focus on the role of the National

Treasury and Planning, and County governments

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The participants of the second workshop jointly developed proposals and concluded, amongst

others, on the following points:

1. Budget support is required for premium payment, awareness creation, monitoring and

evaluation, and capacity building

2. It is the intention of the State Department of Livestock to move to four further counties,

which will require an additional funding of KSh 200 million

3. The currently covered counties pledged significant own budget contributions of a total of

KSh 130 million

4. Procurement of KLIP cover by counties: It was proposed to the counties to work closely

together for procuring KLIP cover. The proposal is to use the Frontier Counties

Development Council (FCDC), which brings together all the counties that are offering KLIP

The seminars were successfully closed on 20 April. KLIP coordination office will closely follow

up amongst others on the subsequent next steps:

Arrange for sensitisation on Index-Based Livestock Insurance for Members of

Parliament and other leaders from the Arid and Semi-Arid Lands (ASAL) counties

Express need for additional funding to National Treasury and Planning in writing

Closely coordinate with National Treasury and Planning officials to prepare a

justification for additional funding and have the Principal Secretary of the State

Department of Livestock formally communicate to Principal Secretary of the National

Treasury and Planning

Assist the counties to draft a bill or motion that could be used to support KLIP

The County Executive Committees (CECs) Chief Officer (CO) and Director of Livestock

to brief their governors on the deliberations

Frontier Counties Development Council (FCDC) to be approached and informed about

the role they will be expected have in facilitating KLIP matters

KLIP coordinator to brief the Principal Secretary of Livestock on the need to engage

the counties governments to firm up the county budgets

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1 Background

Pastoralists in Kenya are at the forefront of climate change, with extreme weather posing a

potentially fatal threat to livestock. Climate change related droughts are a major source of

vulnerability for those who depend on livestock for income and food in the Arid and Semi-Arid

Lands (ASAL) of Kenya. Livestock losses alone have accounted for approximately 70 percent

of the USD 12.1 billion damages caused by drought between 2008 and 2011. Without

adequate protection and response measures, the impacts of drought on livestock threaten to

cause setbacks to the overall economy.

To address this challenge, the Kenyan Government together with the private insurance sector

initiated the Kenya Livestock Insurance Program (KLIP) in 2014. KLIP is an index-based

livestock insurance program that protects pastoralists in the remote, arid and drought-prone

lowlands of Kenya from the impacts of extreme weather. The program uses satellite technology

to monitor the level of greenness and the state of vegetation available to livestock. When

drought becomes particularly severe, payouts are triggered based on the index data and are

directly transferred to the pastoralists with the help of mobile payment systems (M-PESA

technology). With these payments, pastoralists can purchase water and fodder to sustain

tropical livestock such as camels, goats and cows through the drought period. This agriculture

insurance initiative is not only an efficient financing tool but it also helps vulnerable

communities avoiding catastrophic livestock losses in the first place and thus reduces the

negative impacts of climate change. The program currently covers close to 18,012 people and

90,060 livestock units. Since 2014, payouts of more than KSh 700 million have been made to

32,000 pastoralists in need of drought assistance.

In order to support this commendable effort and the successful operation of KLIP, the German

development cooperation GIZ (previously GTZ) and the Swiss Reinsurance Company (Swiss

Re) through their develoPPP.de project Strategic Alliance on Climate Risk Transfer Solutions

have joined KLIP management in organising two executive seminars on index based livestock

insurance. The initial idea to conduct capacity-building events for high-level stakeholders arose

during a workshop organized by GIZ and Swiss Re on “Advancing Agriculture Insurance in

Kenya through Sustainable Public-Private Partnerships” in March 2017, in Nairobi.

The two seminars aimed at building capacity and creating awareness among elected

leadership in the parliament and county assemblies responsible for passing, among others,

agricultural sector policy sessional papers, enacting supportive legal and institutional

frameworks and appropriating budgets both at National and County Levels. Also targeted for

the seminars were senior technocrats from National Treasury and Planning.

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The first seminar, conducted from 17 to 18 April, targeted and drew participation from Members

of Parliament from the following Committees of National Assembly and Senate:

National Assembly

Budget and Appropriation Committee

Implementation Committee

Agriculture and Livestock Committee

Senate

Agriculture and Livestock Committee

The second seminar was held back-to-back to the first one on 19 to 20 April targeting and

summoning the participation from National Treasury and Planning departments relevant to

disaster risk management and budgeting. Each of the following departments nominated two

senior officers for the seminar:

Budget Department

Financial and Sectoral Affairs Department

Resource Mobilization Department

Macro and Fiscal Affairs Department

In addition, participation was drawn from County Governments where KLIP is active. These

counties are Mandera, Wajir, Garissa, Marsabit, Isiolo, Samburu, Turkana and Tana River.

Each of these counties nominated technocrats responsible for Livestock matters and County

elected leadership as detailed below:

County Executive Committee Member (CECM)

County Director of Livestock Production (CDLP)

Member of County Assembly Chairing Agriculture Committee of County Assembly

Details on the participants of the seminars are reported in Annex 5.2A and Annex 5.2B

respectively.

Last but not least, support for the two seminars

was generously provided by, amongst others,

the State Department of Livestock (SDL), the

Insurance Regulatory Authority (IRA) of Kenya,

GIZ, Swiss Re, World Bank Group, ILRI and

insurance service providers (APA Insurance,

Apollo Group and Takaful Africa Group).

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2 Highlights of the Seminars

2.1 Executive Seminar for Members of the Kenyan Parliament, 17 & 18 April

2.1.1 Day 1 - Tuesday, 17 April

I. Setting the stage and Welcome Remarks

The first part of the index-based livestock insurance seminar for Members of the Kenyan

Parliament opened at 9.00 a.m. on 17 April 2018. While giving his remarks, Isaac Magina, of

Swiss Re noted that KLIP is a pillar of innovation in Africa that is being copied widely by other

countries. He reiterated that Swiss Re would continue its support to index-based livestock

insurance in Kenya. Dr. Alexander Jäger, GIZ, complemented his remarks by elaborating the

background and objectives of the event and emphasising the commitment of GIZ to support

the agricultural sector of Kenya.

The Director of Livestock Production, Mr. Julius

Kiptarus stated that he was very happy with the

technical support that the International Livestock

Research Institute (ILRI) and the World Bank

Group were providing for KLIP since its inception

in 2014. Mr. Godfrey Kiptum, the CEO and

Commissioner of Insurance from the Insurance

Regulatory Authority (IRA) of Kenya commended the gains so far made by KLIP and promised

that the IRA will continue with customer protection and guidance on product development for

index-based livestock insurance.

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During their contributions, the Chief Administrative Secretary (CAS) of the Ministry of

Agriculture and Irrigation, Dr. Andrew Tuimur, and the Principal Secretary, State Department

of Livestock, Mr. Harry Kimutai, both urged the members of Parliament to support KLIP in

budgetary allocation and legislation. The CAS encouraged all other relevant stakeholders,

such as the insurance companies, to come in and do their work for the success of index-based

agricultural insurance.

II. Introduction to the Kenya Livestock Insurance Program (KLIP)

Dr. Richard Kyuma gave presentations on the

design, implementation and milestones of KLIP.

The participants were informed that so far KLIP

has paid premiums amounting to just over KSh

400 million while payouts of over KSh 700 million

have been made to beneficiaries. Among others,

key highlights from the presentation were:

Kenya remains vulnerable to frequent and extremely expensive natural disasters,

including droughts and floods that impact the livelihoods of pastoralist communities in

particular and the country’s economy in general

To mitigate against disaster shocks, the government spends huge amounts of

resources that run into billions of Kenya schillings on, among others, food aid, cash

transfers and post drought restocking for affected populations

KLIP was initiated to increase the resilience of pastoral communities against disaster

(drought) shocks through disaster risk transfer products offered by insurance service

providers

KLIP design is based on satellite data of the vegetation cover to assemble an index of

seasonal forage availability/scarcity, referred to as Normalized Differenced Vegetative

Index (NDVI) that is used to determine when payouts are made

Currently, the National Government provides 100% premium support for five Tropical

Livestock Units (TLUs) for vulnerable households

The program has had positive impacts to pastoralist communities including improved

access to forage and water for livestock during periods of drought, access to veterinary

services after payouts and pastoral household welfare and drought mitigation and

overall disaster management

KLIP faces challenges including low and unpredictable funding levels leading to low

levels of KLIP insurance penetration in the ASALs

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III. Components of KLIP and Prerequisite to Sustainable Scale

Following the presentations of Dr. Andrew Mude (ILRI) on the technical design of KLIP and

Barry Patrick Maher (World Bank Group) on the milestones of the program, the moderator,

James Sinah, facilitated a lively discussion on the achievement of KLIP and the prerequisites

to further growth. The following highlights were denoted by the panel, which was joined by Dr.

Richard Kyuma:

That KLIP is part of agricultural sector risk management financing tool recognized by

the National Disaster Risk Financing Strategy

That KLIP despite its limitations and challenges has provided significant benefits to

both pastoralists and Government by:

- Timely and direct payouts to pastoralists to enable them keep their livestock

alive during periods of drought

- Transferring weather related risk financing by the Government to private sector

insurance companies

That the Programme has enabled the Government to:

- Directly target the vulnerable households

- Respond quickly to drought risks

- Ensure transparency and accountability in the use of public funds

That to ensure sustainability of the programme there is a need to promote and expand

the voluntary component which will in turn help to enhance the market size for

insurance companies and thus reduce premium costs

That there was need for further technical capacity building in the programme

IV. Private sector experience on agriculture insurance

Mr. Barry P. Maher (World Bank Group) moderated

the session that included the speakers: Isaac

Magina (Swiss Re), Ashok Shah (APA-Apollo

Group) and Hassan Bashir (Takaful Africa Group).

In their contribution, Ashok Shah, Hassan Bashir

and Isaac Magina pledged to continue underwriting

for KLIP. They all agreed that the government

would need to continue subsidising KLIP product until the market for index-based livestock

insurance grows the critical numbers for commercial sustainability.

In their contribution, the private sector insurance service providers highlighted the following:

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Swiss Re

As reinsurer, Swiss Re provides stability and

protection to primary insurers. In the case of

KLIP, Swiss Re provides reinsurance to all

insurance companies that insure pastoralist

through KLIP program which include Takaful

Insurance and APA Insurance

In addition, Swiss Re provides product

development support, capacity building and trainings to stakeholders in agriculture

insurance

Swiss Re will continue to support KLIP in partnership with the primary insurance

providers and development partners

APA-Apollo Group and Takaful Africa Group

The private sector has been crucial in the

implementation of KLIP. It helps lifting the burden

from the Government to mitigate against the

vagaries of drought for the ASAL areas

There is no better approach to de-risking

agriculture and invigorating growth than a PPP

arrangement

A consortium of seven insurance companies in

partnership with the Government has covered

KLIP from 2015 up to September 2017 after

Takaful was awarded with the contract. Prior to

2015, APA Insurance covered some counties since 2010

A total payout of KSh 700 million has been made to beneficiaries against a premium

cover of KSh 400 million

V. Value of KLIP to the pastoralists, results of recent impact study

Dr. Alexander Jäger shared information on the profile

of GIZ globally and in Kenya. He stated that GIZ’s

purpose is to promote international cooperation for

sustainable development. He then reported on a recent

study conducted on the perceptions and impact of

KLIP. The results of the study on the impacts of KLIP to

the pastoralist communities were highlighted as follows:

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Impact and Perceptions

Interviews confirmed that prolonged droughts are the main challenge for pastoral

activities and cause further difficulties such as diseases and social conflicts

Self-reported satisfaction with KLIP is high and the majority of beneficiaries reported

using the payouts on household needs and livestock management

Among KLIP households food insecurity is slightly lower and there is qualitative

indication for community spill over, e.g. sharing of payouts

There is no significant difference between KLIP and non-KIP households in terms of

livestock accounting/management and willingness to pay for livestock insurance

There are delays in receiving payouts due to failures in operational processes

At times recovering the payouts needs extensive and time-consuming travels

Knowledge and awareness

Results indicate that beneficiary households are more knowledgeable about insurance

(general & KLIP specific), but the general knowledge levels are very low

This leads to a reduction of adaptive behaviour and reduces the potential benefits of

KLIP

Knowledge is low also at administrative level, for extension officers and village chiefs

Based on the findings, the following recommendations were given:

Fields for improvement

- Timely payouts with little effort for beneficiaries

- Reduce efforts and costs for beneficiaries

- Increase impact on livestock management

Information needs

- Trainings needs for administrative staff, KLIP focal persons, extension officers,

village chiefs

- Regular sharing of information with communities

- Improved materials/formats for knowledge creation and awareness

- Provide adequate logistics for KLIP manager

The presentation of Dr. Jäger was followed by a discussion on the podium with Dr. Andrew

Mude from ILRI, plus a session of questions and answers with the audience.

VI. Feedback from the Members of the Kenyan Parliament

The elected leadership attending the seminar noted and appreciated the significant role KLIP

is playing in addressing the challenges faced by pastoralist households with respect to weather

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related negative impacts. However, the participants also noted concerns with the programme

and raised them as follows:

The programme may face sustainability challenges as the premiums are 100%

financed by the Government, but budgetary provisions in support of KLIP from the

exchequer are low and unpredictable

There are questions as to why the programme is restricted to very few counties and all

in the ASAL areas and on the criteria used to select the counties

The majority of households in KLIP counties own large herds of livestock and yet the

cover is restricted to only five TLUs. How is the drought risk mitigated by the rest of the

herds and, given the small number under the cover, whether KLIP has had a significant

impact so far

Concerns around what strategy KLIP has towards graduating beneficiaries to partial

subsidy and eventually to voluntary commercial arrangements with insurance service

providers

The extent to which there was public participation at the initiation stages of the

programme and whether the input of the public institutions was considered in the

programme formulation and implementation

Concerns around low levels of awareness of KLIP among pastoralist communities in

ASAL areas

The concerns raised were responded to, and after discussions, the Members of Parliament

(MPs) made the following proposals:

MPs and other elected leaders in the County Assemblies from the ASAL counties

should be provided with capacity building knowledge and lobby strategies. In this way,

they will be enabled to better understand KLIP and support the programme in

awareness creation to their electorate and in the mobilization of resources

The Counties that have been enjoying KLIP for some time now should take up

subsidizing from their county budgets so that the national budget can be moved to

those counties that are new

The Ministry through the State Department of Livestock in liaison with Counties should

develop an accurate data base on the subsector in ASAL areas including accurate data

on beneficiaries to facilitate timely and efficient payouts when triggered

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2.1.2 Day 2 - Wednesday, 18 April

I. Official Opening of the Seminar

The official opening session was presided over by the highest level possible of the subsector

Ministry and let by the Cabinet Secretary responsible for the Ministry of Agriculture and

Irrigation. The Cabinet Secretary gave the following remarks in his official welcoming note:

The livestock industry plays a significant role for the economy of the country including

improving livelihoods of farmers, especially for pastoralist, food security and

employment creation among others

Despite the positive role that livestock farming plays, the sector is facing several

challenges, including weather related risks such as droughts and floods, diseases and

poor infrastructure for the distribution of products

In order to address these challenges, the ministry has put in place policy, legal and

institutional frameworks promoting a growth path in the subsector. These initiatives

include the development of veterinary and livestock, and overarching agriculture

policies that have been approved and are currently under implementation. Other

initiatives include Vision 2030 and the Agricultural Sector Transformation and Growth

Strategy (ASTGS)

KLIP is a critical weather related disaster risk transfer tool that has significantly

benefitted the pastoralist communities in the eight counties where the program is

operational. Despite the benefits, the Minister noted that the program faces several

challenges, notably inadequate budgetary support for effective delivery of program

activities. To this end, the intervention of the MPs was sought towards support of the

insurance program by enhancing budgetary appropriation to KLIP

In order to facilitate further support to KLIP and encourage pastoralist farmers to

graduate from a fully government funded insurance cover program to commercial

cover, the Ministry would start a partial voluntary cover where for every livestock

insurance cover taken by a farmer on a commercial basis, the government will give a

corresponding cover support to the farmer. To this end, insurance companies were

encouraged to promote this unique insurance initiative among farmers with the final

objective to facilitate the uptake of voluntary cover

To improve the delivery of KLIP and other livestock programmes and facilitate timely

and accurate payouts to the beneficiaries, the Ministry was rolling out a census program

in the sector to create an accurate database

The Minister concluded his opening remarks by appreciating the efforts of the organizers,

including development partners, for making the capacity building seminar possible.

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Other speakers during this session included the Chief Administrative Secretary of the Ministry

of Agriculture and Irrigation, Dr. Andrew Tuimur, the Principal Secretary of the State

Department of Livestock, Mr. Harry Kimtai, the Chief Executive Officer of Insurance Regulatory

Authority, Mr. Godfrey Kiptum, and the Director of Livestock Production, Mr. Julius Kiptarus.

II. Lessons learned, emerging issues and sustainability of KLIP

The session was moderated by Duncan Collins Khalai (ILRI) and joint by James Sinah (World

Bank), Charles M. Wambua (APA Group) and Hassan Bashir (Takaful Africa Group). The

following points were emphasised:

Index based insurance is a new concept and therefore most of the target population

might not yet understand how it works

It is important that clients receive accurate and complete information and training

Misinformation leading to unrealistic expectations and subsequent disappointment may

damage the reputation of the product

KLIP beneficiaries are most likely to be illiterate or semi illiterate and have had zero or

limited prior experience with insurance

Therefore, it was concluded:

Continuous education on the product and its benefits is key

Tools for education need to be easy to understand for the beneficiaries

Approaches need to be acceptable and interesting

To establish informed demand for KLIP:

Tools and training are critical but there is also a need to develop the expertise within

the participating institutions and ensure widespread awareness and acceptance

For this to occur, three-tier targeting is necessary:

Level 1: Facilitate and enable a supportive environment - including regulation,

curriculum development, policy support, technical assistance, ombudsman

Level 2: Improve service delivery - Mainstream KLIP training in collaboration with the

Government of Kenya, IRA, World Bank and ILRI. Build capacities for contract design,

validation, standardization and certification

Level 3: Create informed demand - Raising public awareness through mobile based

technology, radio and printed materials

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III. In-progress review of the Agriculture Sector Transformation and Growth

Strategy (ASTGS)

Ms. Priscilla W. Muiruri from the Ministry of Agriculture and Irrigation has provided an overview

of the ASTGS strategy towards 100% Food Security through Agricultural Transformation in

Kenya, its pillars, food security implications and the high-level roadmap for first five years of

transformation.

IV. Define follow up steps – support required

During this session, moderated by Dr. Richard Kyuma, the MPs were informed that their

support was require for:

Budgetary allocation in parliament

Agriculture policy development support and enactment of regulations

County engagement support and

Promotion of agriculture insurance and awareness creation to the general public

V. Feedback from the Members of the Kenyan Parliament

The present members of the Kenyan Parliament gave the following feedback to the

aforementioned sessions and the required support:

Budgetary support and funding of KLIP

The Members of Parliament agreed that the budget committee would support the

budgetary allocations for KLIP when the ministry statements are brought to parliament

The next budget proposals from KLIP through the State Department of Livestock

should be developed in active collaboration with the responsible parliamentary

departmental committees

Policies and Regulations on Index-Based Livestock Insurance

The IRA has made regulatory proposals on index-based insurance that will be brought

to the house of parliament for deliberations. The MPs promised to support the

proposals to amend the Insurance Act

County engagement and promotion on KLIP

Members of Parliament and other leaders from the Arid and Semi-Arid Lands (ASAL)

counties should be sensitised about KLIP for more support in Parliament/county

assemblies and at their constituencies

Other opinion leaders such as chiefs, women group leaders, religious leaders and all

gate keepers in the community should be sensitised on KLIP to improve on awareness

and uptake

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The County Agricultural extension services should be used for KLIP implementation

Local FM radio stations should be used for awareness creation

VI. Closing remarks for the first seminar

The closing session was presided over by the Principal Secretary of the State Department of

Livestock, Mr. Harry Kimtai.

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2.2 Executive Seminar for the National Treasury and Planning & County

Officials, 19 & 20 April

2.2.1 Day 1: Thursday, 19 April

I. Welcome & Opening

Godfrey Kiptum, the Commissioner of Insurance, officially opened

the second seminar after introductory remarks from Vinicent Githinji,

Isaac Magina and Dr. Alexander Jäger. He reiterated that the IRA will

continue to support KLIP/SDL to ensure that KLIP product is

sustainable. Further, the IRA will present amendments of the

Insurance Act to parliament so that Index-Based Insurance is

accommodated.

II. Introduction to the Kenya Livestock Insurance Program (KLIP)

Dr. Richard Kyuma made presentations to the participants about the design, implementation

and milestones of KLIP. The participants were informed that so far KLIP has paid premiums

amounting to just over KSh 400 million while payouts of over KSh 700 million have been made

to beneficiaries. Furthermore, they were informed that KLIP is currently being implemented in

eight counties and that payments for the last season have been made up to 60%.

Extended information on the introduction session is available on page 11.

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III. Insights on KLIP Product and Implementation

A historical evolution of Index-Based Livestock Insurance (IBLI) – which is the technical base

for KLIP - was given by the ILRI team, noting that the initial product was asset replacement but

now it is asset protection. The features as well as the contract design of IBLI were explained

to the participants. Moreover, they were informed that the actual risk covered was forage

scarcity over the season and that KLIP insures the following, i.e. camel, cattle, sheep and

goats.

The ILRI team noted that there is need to institutionalize the development of expertise and

ensure widespread awareness and acceptance of index based livestock insurance. To ensure

this, KLIP uses a three-tier approach:

Level 1: Facilitate and Enable Supportive Environment for – Regulation, Curriculum.

Development, Policy Support, Technical Assistance, Ombudsman

Level 2: Service delivery Mainstreaming of IBLI training in collaboration with the GoK, IRA,

WB, ILRI, insurance partners etc.

Level 3: Informed demand – Public awareness, Leveraging mobile based technology, radio

and printed material

Concerns of the participants raised during the session included:

a) Can the insurance companies consider making payouts during good years?

b) The total cost insured of KSh 14,000 did not seem sufficient to feed one Tropical

Livestock Unit (TLU) in most of the areas of insurance

c) Could the geographical units of insurance be checked with changing environmental

conditions and information?

Dr. Andrew Mude and Mr. Duncan Collins Khalai from ILRI took up the questions and

discussed them in depth with the audience.

IV. Private sector Experience on Livestock Insurance and Disaster Financing

Isaac Magina of Swiss-Re informed the participants that his company is a reinsurer who in turn

provides stability and protection to primary insurers. In addition, the reinsurer provides

Insurance product development, capacity building and trainings. He said that disasters place

a significant burden on the public sector and that No country can fully insulate itself against

extreme natural disasters, despite prevention and mitigation efforts. He noted that Individuals,

corporations and governments – both on national and sub-national level – bear the brunt of

economic losses from natural disasters including droughts. Therefore, there is need for the

22

government to take up financing options such as risk transfer, contingency and reserve funding

as a pre- event action.

Charles Wambua of APA insurance reiterated that insurance is about pooling of resources to

take care of extreme loses. It is therefore not automatic that one gets payouts for each payment

of premiums. He said that that there have been challenges on making payouts mostly due to

incorrect data. Accurate data is paramount to efficient payout transfer system. He observed

that PPPs are not unique to Kenya, even developed economies provide subsidies to

agricultural programs such as KLIP. Therefore, the National and County Governments should

support KLIP for the sake of the venerable population.

Hassan Bashir of Takaful Africa Insurance emphasized that KLIP is designed in a way that a

trigger for payout only occurs in the areas of need. However, if the trigger occurs in one area

and not in another where droughts occur, then that is a design issue. However, not all who

take the cover with insurance companies will be paid in any given season.

V. Value of KLIP to the Pastoralists, Results of Recent Impact Study

The results of a recent GIZ impact study were present as described on page 13-14. In addition,

Dr. Andrew Mude presented findings on the ILRI evaluations of the program:

Wide range of positive impacts on household

Quantification of risk-coverage precision of contracts

Indication of value-for-money for public expenditure

Production Benefits

KLIP covered households:

Increase investments in maintaining livestock through procurement of veterinary and

vaccination services

Experience improved production outcomes: increases milk productivity and the value

of milk produce

KLIP proved to have positive impacts on improvements to mid-upper arm

circumference (MUAC), a strong predictor of child malnutrition

Welfare Benefits

IBLI improves post-drought coping. After catastrophic 2011 drought, IBLI covered

households reported better than expected behaviours/outcomes

36% reduction in likelihood of distress livestock sales, especially (64%) among

modestly better-off households (>8.4 TLU)

25% reduction in likelihood of reducing meals as a coping strategy, especially (43%)

among those with small or no herds

23

2.2.2 Day 2: Friday, 20 April

I. Financial Instruments Currently Being Used by National Treasury and

Planning for Disaster Risk Financing

Ms. Isabel Joy Ochieng, an Economist in the Financial and Sectoral Affairs Department of the

National Treasury and Planning, illustrated that Kenya is pre-disposed to natural hazards

including droughts, floods, earthquakes, landslides and volcanic activity. More than 80% of

Kenya’s landmass is arid and semi-arid, so when we think about hazards in Kenya, we

recognize drought as the prime recurrent natural disaster in the country and it is the most

devastating one. Each drought event causes severe crop and livestock losses, famine and

population displacement in the country. Excessive flooding in Kenya occurs relatively frequent

(on average every three to four years) and is linked to El Niño or La Niña episodes, which can

lead to extreme weather in the country and region. Urban flooding is also progressively

becoming an issue, especially in big cities and towns.

Humanitarian assistance has been one way of dealing with disasters. However, this

intervention has challenges that include delays, unpredictability, and cost-inefficiencies.

Furthermore, it is difficult to secure enough funds to address disaster issues through

reallocations of budgets because the provisions for reallocation of appropriated funds are

stringent as per the Public Finance Management Act 2012.

Therefore, the National Treasury and Planning has made significant progress in integrating

Disaster Risk Management in planning and budgeting at both national and county levels in an

effort to reduce risks. Recognizing that not all risks can be entirely prevented, this prompted

the development of a Disaster Risk Financing (DRF) Strategy to more effectively manage any

such residual risks and to ensure financial protection. This proactive approach focuses on

planning financial responses in advance to better manage the cost of disasters, ensure

predictable and timely access to needed resources, and ultimately mitigate long-term fiscal

impacts. The DRF Strategy is an important step to enable the government to improve its

response to the impact of natural disasters and improve the efficiency and effectiveness of

budget allocation and execution. The Strategy analyses the portfolio of Kenya’s sovereign

disaster risk financing instruments which includes the Kenya Livestock Insurance Programme

(KLIP) which is an index-based insurance for selected pastoralists in the ASALs and currently

is fully subsidized through national budget allocation. Other Disaster Risk Financing

Instruments (DRFIs) include: Contingencies Fund, County Emergency Funds, Scalable

component of the Hunger Safety Net Program (HSNP), Kenya Agricultural and Insurance

Management Program (KAIRMP), Africa Risk Capacity (ARC)- (under review), Development

Policy Credit with a Catastrophe Deferred Draw Down Option (Cat DDO)- (planned). The

24

Strategy proposes four strategic priorities going forward: i)ensure a coordinated approach to

disaster risk financing across National and County Government institutions managing various

disaster risk financing instruments; ii) improve the sovereign financing capacity by

strengthening and expanding the National and County Government’s portfolio of disaster risk

financing instruments; iii) support key programs, such as KLIP, to protect the most vulnerable

populations from the impacts of disasters and contribute to building resilience; and iv) enhance

the capacity to respond to disasters of National Ministries, Departments and Agencies, as well

as County Governments.

II. Role of National Treasury and Planning and County Governments

During this session, all participants were divided

into three groups:

Group 1: Budgetary Support

Group 2: Awareness Creation

Group 3: Role of Counties in the implementation

of KLIP

The participants were to rotate in each group and help to:

1) Identify need for further support to the counties and

2) Discuss concrete next steps and assign responsibilities

The results of the session can be found in the next chapter, 3.2 Decisions of the seminar.

III. Closing of the Second Seminar

Vincent Githinji, Senior Deputy Director of Livestock Production, closed the seminar at 1.00

pm by thanking the participants for their time and valuable contributions.

25

3 Decisions of the Seminar

3.1 Executive Seminar for Members of the Kenyan Parliament

1. Funding

a. The Members of Parliament agreed that the budget committee would support the

budgetary allocations for KLIP when the ministry statements are brought to

parliament

b. The next budget proposals from KLIP through the State Department of Livestock

should be developed in active collaboration with the responsible parliamentary

departmental committees

2. Policies and Regulations on Index-Based Livestock Insurance

a. IRA has made regulatory proposals on index-based insurance that will be brought

to the house of parliament for deliberations. The MPs promised to support the

proposals to amend the Insurance Act

3. County engagement and Awareness creation on KLIP

a. Members of parliament and other leaders from the Arid and Semi-Arid Lands

(ASAL) counties should be sensitised about KLIP for more support in

Parliament/county assemblies and at their constituencies

b. Other opinion leaders such as chiefs, women group leaders, religious leaders and

all gate keepers in the community should be sensitised on KLIP to improve on

awareness and uptake

c. The County Agricultural extension services should be used for KLIP implementation

d. Local FM radio stations should be used for awareness creation

3.2 Executive Seminar for the National Treasury and Planning & County

Officials

1. Budget support

The project implementation unit (PIU) will require support in the following areas:

Premium payment (KLIP is expected to expand to four additional counties in the next

insurance cycle (2018/2019) and will require additional KSh 200 million to do so.

Awareness creation (awareness on livestock insurance is important at all levels and

will require substantial budget to carry out effective campaigns. Currently PIU is

underfunded in these areas and will need support from key stakeholders including

counties to create livestock insurance awareness related activities.

26

Monitoring and evaluation (M&E was seen to be very critical and currently it is seriously

underfunded)

Capacity building

Intention of SDL is to move to four counties

Will require additional KSh 200 million to purchase for beneficiaries from the four

counties

Counties indicated their willingness to invest in promoting KLIP. The Eight counties

represented pledged to allocate budget for premium support to boost the number of

beneficiaries accessing livestock insurance.

o Samburu County – indicated that they will support 750 households over and

above what national government is supporting

o Marsabit County reported KLIP is in the County Integrated Development Plan

(CIDP) and in current Annual Development Plan (ADP). The county is planning

to purchase livestock insurance cover and will start with 500 households in

2018/2019 insurance cycle and progressively add 500 households every year

to reach 2500 households in the 5th year

o Turkana County indicated KLIP had not been factored in the CIDP; however,

The Chair of County committee in charge of Pastoral Economy and Fisheries

will recommend its inclusion in the CIDP and recommend a budget of KSh 40

million to be set aside in 2018/2019 budget. A two-pager write-up on KLIP will

be necessary to provide necessary technical details to guide The Chair in

lobbying for its inclusion in the CIDP.

o Wajir County – Appreciates the role of KLIP and has factored it in the CIDP

and ADP and there are plans to cover 1,000 H/H in the next insurance cycle

(equivalent of KSh 14 million)

o Tana River County – Appreciates the role of KLIP in assisting the pastoral

households to manage weather related shocks and has included it in the CIDP

and current ADP and has allocated KSh 15 million to pay premium in the coming

insurance cycle, 2018/2019

o Isiolo County has factored KLIP is in the CIDP and current ADP and has

allocated 35 million to pay premium

o Mandera County has included KLIP in the CIDP and officials attending the

workshop will push for budget allocation of KSh 50 million to support KLIP

27

Procurement of KLIP cover by counties – it was recommended that the counties to

adopt similar product specifications provided by the national government. The counties

to consider working together closely to procure KLIP cover. A regional body, Frontier

Counties Development Council (FCDC), which brings together all the counties offering

KLIP to facilitate ammonization of the procurement.

2. Awareness Creation

The session on awareness creation featured more discussions and proposals than concrete

decisions. The participants gave the following answers to the question as to:

a. “Why do we need awareness creation?”

To educate stakeholders on insurance in general and KLIP in particular

To have a general buy in and acceptance of KLIP

To build the confidence of the beneficiaries

To have informed decisions/demand

To create a critical demand mass which will lead to reduced cost of the product

Create critical feedback

b. “Who is our target group for the awareness creation?”

Consumers (farmers/pastoralists)

Extension officers

Financiers (GOK, Dev. Partners and counties)

Insurance companies/service providers

Legislators and Executive (national/counties)

National Treasury and Planning

c. “What are suitable channels for awareness creation?”

County assemblies

One-on-one meetings/workshops at county levels

Local FM radio stations

Northern/North Eastern Public initiative

Council of governors

Pastoral Parliamentary group

28

Role of the Counties

A. Challenges and gaps

about KLIP

B. Addressing the

challenges &

expectations towards

other stakeholders

C. What counties can

contribute

1 Insufficient funding leads to lack

of resources for data validation

and M&E

Mainstream insurance into

financial planning

Counties to allocate resources

for data validation and M&E

2 Lack of logistical support and

infrastructure for getting payouts

to beneficiaries

Issues around

telecommunications

Collaboration with partners,

e.g. Safaricom, NGOs

3 Low priority attributed to

livestock policy on county level

Counties to invest in KLIP and

fodder production (including

market development)

Create political support

(Assembly and Executive)

Participants of the workshop to

act as multipliers in their

counties

Develop and pass bills or

motions on livestock insurance

4 Low awareness and lack of

capacity for insurance solutions

on county level and with

pastoralists

Capacity support for County

Assembly --> help allocate

funding

Awareness creation for

pastoralists on benefits of

insurance

Address awareness with

trainings (joint effort by KLIP

and counties): Identification

and facilitation of participants,

conference venue, etc. done

by counties

Cascading of information and

knowledge to communities

with the help of departments of

Livestock and through county

extension services /

29

communication channels such

as radio

5 Lack of policy framework for

KLIP

Anchoring DRF in county

strategy (CIDP)

Include Drought Risk

Financing in County Integrated

Development Plans

6 Mobility of pastoralists impairs

channelling of payouts

Tracking movement of

pastoralists

Use existing County structures

to track movement of

pastoralist

7 Data validation Think about use of smart cards

for registration of beneficiaries.

Maybe align with data from

social protection schemes

8 The number of pastoralists /

households benefiting from the

nationally subsidised KLIP is

small

Upscaling number of

beneficiaries insured

30

4 Next Steps

The following steps were agreed to be key for KLIP management team:

1. KLIP PIU to arrange for sensitisation on Index-Based Livestock Insurance for Members of

Parliament and other leaders from the Arid and Semi-Arid Lands (ASAL) counties

2. KLIP PIU to express their need for additional funding to National Treasury and Planning in

writing

3. KLIP Coordinator to closely engage with National Treasury and Planning officials to do a

justification for additional funding and have PS SDL formally communicate to PS National

Treasury and Planning

4. KLIP Secretariat to assist counties to draft a bill or motion that could use to domesticate

KLIP

5. The CECs/CO/Dir of Livestock to brief their governors on the deliberations

6. FCDC to be approached and be informed about the role they will be expected to facilitate

KLIP matters

7. KLIP coordinator to brief the PS- Livestock on the need to engage the counties

governments to firm up the county budgets

8. The report of the workshop to be shared with all the representatives that attended the

workshop

31

Additional recommended next steps from the World Bank Group

i. The Government should ensure awareness creation activities are properly

resourced. SDL is in the process of collaborating with Insurance Regulatory

Authority (IRA) which has the mandate to create awareness on insurance in

general. Internarial experience shows the importance of adequately resourcing

such activities, which can be overlooked. The private sector can also play a

critical role, undertaking aggressive marketing for voluntary component.

ii. Make an electronic registry system mandatory and registration process

continuous for efficient management the beneficiaries list. The system will make

it easy to register recipients and update the list without incurring substantial cost

when graduating them or bringing the new one on board. The ministry could

consider using private sector infrastructure to recruit potential beneficiaries – for

example Bank or Mobile money agent's infrastructure. Selection of beneficiaries

from the register should be made using agreed selection criteria between the

national and county governments. The ministry could learn from existing registry

systems, like for example the one used by Hunger Safety Net Program (HSNP).

iii. The relationship between the national and county governments can be

strengthened to encourage cost sharing of premium subsidies. SDL to establish

close collaboration with counties to seek their support to increase the number of

households covered. Some counties have already factored in livestock

insurance in their County Intergraded Development Plans (CIDP), a strong

indication that they will allocate resources to promote livestock insurance.

iv. The ministry to devote technical resources to expand access to insurance

through the voluntary insurance component with partial subsidy. The counties

could also be encouraged to invest their resources for subsidy support. The

ministry can also engage with Counties to explore the potential for meso level

insurance products to protect county budgets in the event of drought.

v. The ministry to promote an incentive-based structure in their procurement of

insurers where the fully subsidized premiums are allocated in proportion to the

number of voluntary policies sold. This would incentivize private sector insurance

companies to develop a sales network and drive uptake of voluntary sales of

KLIP. Existing procurement laws may require review to accommodate such an

approach.

32

5 Annexes

5.1 Annex 1: Agendas

5.1A 17 & 18 April 2018


Arrival Day: Monday, 16 April 2018 – Venue: Baraza Lawns

18:30 Welcome Event

Day 1: Tuesday, 17 April 2018 – Venue: Fahari Room

Time Activity Speakers

8:30 Registration

9:00 Setting the stage Dr. Alexander Jäger Project Leader, develoPPP.de Alliance on Climate Risk Transfer Solutions / GIZ

Mr. Isaac Magina Senior Client Manager Africa / Swiss Re

9:15 Welcome Mr. Julius Kiptarus Director of Livestock Production

9:25 Welcome Note

Mr. Harry Kimtai Principal Secretary State Department of Livestock

9:35 Remarks

Dr. Andrew Tuimur Chief Administration Secretary Ministry of Agriculture and Irrigation

9:45 Introduction to the Kenya Livestock Insurance Program (KLIP)

Dr. Richard Kyuma Project Coordinator KLIP, State Department of Livestock / Ministry of Agriculture and Irrigation

10:15 Q&A on KLIP Speakers of previous session & audience

10:30 Networking Tea Break

33

11:00 Components of KLIP and Perquisites to Sustainable Scale

Moderator:

Mr. James Sinah Disaster Risk Financing and Agriculture Insurance Consultant / The World Bank Group

Presentations and panel:

Dr. Andrew Mude Project Leader, Index-Based Livestock Insurance / International Livestock Research Institute (ILRI)

Mr. Barry Patrick Maher Senior Risk Financing and Insurance Specialist / The World Bank Group


12:15 Q&A on Components of the KIP Speakers of previous session & audience

12:30 Networking Lunch

14:00 Private sector experience on agriculture insurance

Introduction & Facilitation:


Presentation:


Additional discussions participants:

Mr. Ashok Shah Group CEO / APA Insurance, Apollo Group

Mr. Hassan Bashir Group Chief Executive / Takaful Africa Group

14:45 Q&A on private sector experience Speakers of previous session & audience


15:30 Value of KLIP to the pastoralists, results of recent impact study

Dr. Alexander Jäger

Project Leader, develoPPP.de Alliance on Climate Risk Transfer Solutions / GIZ

Additional discussions participants:


16:00 Q&A on KLIP impact study Speakers of previous session & audience

16:15 Feedback from the Members of the Kenyan Parliament

Moderator:


34

17:00 Closing remarks of day one and second day agenda


18:30 Networking Dinner

Day 2: Wednesday, 18 April 2018 - Fahari Room

Time Activity Speakers

8:30 Registration

9:00 Recap of Day 1


Project Leader, develoPPP.de Alliance on Climate Risk Transfer Solutions / GIZ

9:05 Opening ceremony Mr. Harry Kimtai Principal Secretary State Department of Livestock

9:15 Welcome remarks

Mr. Godfrey Kiptum Ag. CEO & Commissioner of Insurance Insurance Regulatory Authority of Kenya

9:25 Remarks Dr. Andrew Tuimur Chief Administration Secretary Ministry of Agriculture and Irrigation

9:35 Keynote Speech

Hon. Mwangi Kiunjuri Cabinet Secretary Ministry of Agriculture and Irrigation

10:00 Lessons learned, emerging issues and sustainability of KLIP


Mr. Duncan Collins Khalai Market and Capacity Development Specialist / International Livestock Research Institute (ILRI) Panel:


Mr. Charles M. Wambua Head of Microinsurance & Agribusiness / APA Insurance, Apollo Group


10:45 Q&A on KLIP lessons and sustainability Speakers of previous session & audience

10:45 Extra session

11:00 Networking Tea Break (Including group photo)

35

11:15 Define follow up steps – Support required

Budgetary support

Agriculture policy development support

County engagement support

Promotion of agriculture insurance to general public


Dr. Richard Kyuma Project Coordinator KLIP, State Department of Livestock / Ministry of Agriculture and Irrigation Panel:

Mr. Robert Kuloba Chief Manager, Policy Research and Development / Insurance Regulatory Authority



12:15 Feedback from the Members of the Kenyan Parliament

Moderator:


12:45 Closing Remarks Dr. Alexander Jäger

Project Leader, Alliance on Climate Risk Transfer Solutions / GIZ

Mr. John Karanu Head East Africa / Swiss Re

13:00 Closing Speech Mr. Harry Kimtai Principal Secretary State Department of Livestock


36

5.1B 19 & 20 April 2018

Executive Seminar for the National Treasury and Planning of Kenya &

County Officials

Day 1: Thursday, 19 April 2018 – Venue: Fahari Room

Time Activity Speaker

8:30 Registration

9:00 Welcome & Opening Dr. Alexander Jäger Project Leader, Alliance on Climate Risk Transfer Solutions / GIZ


9:15 Welcome Notes

Mr. Vincent Githinji Senior Deputy Director of Livestock Production

9:25 Welcome Remarks

Mr. Godfrey Kiptum Ag. CEO & Commissioner of Insurance / Insurance Regulatory Authority of Kenya

9:35 Introduction to the Kenya Livestock Insurance Program (KLIP)

Presentation:


10:20 Q&A on the KLIP Speakers of previous session & audience

10:30 Tea break (including group photo)

11:00 Insights on KLIP Product and Implementation

Presentations:


Mr. Duncan Collins Khalai Market and Capacity Development Specialist / International Livestock Research Institute (ILRI)

12:30 Q&A on KLIP Product Design Speakers of previous session & audience


14:00 Private sector Experience on Livestock Insurance and Disaster Financing

Facilitation:

Mr. Abdikarim Daud Livestock Sector Lead / Kenya Markets Trust

Presentation & Facilitation:


Presentations:

Mr. Charles M. Wambua Head of Microinsurance & Agribusiness / APA Insurance, Apollo Group


37

15:00 Q&A on Private Sector Experience Speakers of previous session & audience

15:15 Tea Break

15:30 Value of KLIP to the Pastoralists, Results of Recent Impact Study

Presentation:

Dr. Alexander Jäger Project Leader, Alliance on Climate Risk Transfer Solutions / GIZ


16:15 Q&A on KLIP Impact Study Speakers of previous session & audience

16:30 Closing Remarks of Day One and Second Day Agenda


18:30 Networking Dinner

20:00 Evening Reception – Venue: Baraza Lawns

38

Day 2: Friday, 20 April 2018 – Venue: Fahari Room

Time Activity Speaker

8:30 Registration

9:00 Recap of Day 1


9:15 Financial Instruments Currently Being Used by National Treasury for Disaster Risk Financing

Facilitator:


Presentation:

Ms. Isabelle Joy Ochieng Fiscal and Sectoral Affairs Department

10:00 Q&A on Role of Public Sector and Disaster Risk Financing

Speakers of previous session & audience


11:00 Define Follow Up Steps – Role of National Treasury and County Governments




Group 1: Budgetary Support Moderator: Mr. James Sinah Disaster Risk Financing and Agriculture Insurance Consultant / The World Bank Group

Group 2: Agriculture Policy Development Moderator: GIZ / Swiss Re

Group 3: Role of Counties in Implementation of KLIP

Moderator: Mr. Duncan Collins Khalai Market and Capacity Development Specialist / International Livestock Research Institute (ILRI)

12:30 Consolidate Feedback and Define Follow Up Steps




13:00 Closing Remarks Dr. Alexander Jäger Project Leader, Alliance on Climate Risk Transfer Solutions / GIZ

Mr. John Karanu Head East Africa / Swiss Re

13:15 Closing Speech Mr. Julius Kiptarus Director of Livestock Production / Ministry of Agriculture and Irrigation


39

5.2 Annex 2: Participants

5.2A 17 & 18 April 2018


Name Position Institution

Kenyan Parliament

Hon. Moses Lessonet Vice Chairperson, Budget & Appropriation committee

National Assembly

Hon. (Dr.) Korei Ole Lemein MP, Budget & Appropriation committee

National Assembly

Hon. James Gichuki Mugambi MP, Budget & Appropriation committee

National Assembly

Hon. Danson Mwashako MP, Budget & Appropriation committee

National Assembly

Hon. Qalicha Gufu Wario MP, Budget & Appropriation committee

National Assembly

Hon. Naisula Lesuuda MP,Budget & Appropriation committee

National Assembly

Mr. Danson Kachumbo Staff, Budget & Appropriation committee

National Assembly

Hon. Moitalel ole Kenta Chairperson, Implementation committee

National Assembly

Hon. Alois Lentoimaga MP, Implementation committee National Assembly

Hon. Charles Ngusya Nguna MP, Implementation committee National Assembly

Hon. Joshua Mwalyo MP, Implementation committee National Assembly

Hon. Owen Yaa Baya, MP, Implementation committee National Assembly

Hon. Paul Abuor MP, Implementation committee National Assembly

Hon. Hassan Oda Hulufo MP, Implementation committee National Assembly

Mr. Abdirahman Hassan Staff, Implementation committee National Assembly

Hon. Joyce Kamene, MP, Agriculture & Livestock committee

National Assembly

40

Hon. Maison Leshoomo MP, Agriculture & Livestock committee

National Assembly

Hon. Justus Makokha Murunga

MP, Agriculture & Livestock committee

National Assembly

Hon. John Paul Mwirigi MP, Agriculture & Livestock committee

National Assembly

Hon. Adan Haji Yussuf MP, Agriculture & Livestock committee

National Assembly

Hon. Yegon Brighton Leonard MP, Agriculture & Livestock committee

National Assembly

Mr. Nicodemus K. Maluki Staff, Agriculture & Livestock committee

National Assembly

Mr. David Ngeno Staff, Agriculture & Livestock committee

The Senate

Mr. Philemon Okinda Staff, Agriculture & Livestock committee

The Senate

Ministry of Agriculture and Irrigation

Hon. Mwangi Kiunjuri Cabinet Secretary Ministry of Agriculture and Irrigation

Dr. Andrew Tuimur Chief Administration Secretary Ministry of Agriculture and Irrigation

Mr. Harry Kimtai Principal Secretary, State Department of Livestock


Mr. Julius Kiptarus Director of Livestock Production Ministry of Agriculture and Irrigation

Mr. Vincent Githinji Deputy Director of Livestock Production


Mr. David Malinga Personal Assisstant to the Principal Secretary


Ms. Ruth Chelimo Personal Assistant to Director of Livestock Production


Ms. Priscilla W. Muiruri Ministry of Agriculture and Irrigation

Ms. Sharon Makena Ministry of Agriculture and Irrigation

Ms. Grace Kimaru Ministry of Agriculture and Irrigation

Ms. Ruth Buyanzi Ministry of Agriculture and Irrigation

41

Dr. Richard Kyuma Project Coordinator, KLIP State Department of Livestock

Mr. Tom Kinara Communication and Network Development Officer, KLIP

State Department of Livestock

Mr. David Mwania Monitoring and Evaluation, KLIP State Department of Livestock

Ms. Josephine Ndunge Mutiso Chief Officer Administrator, CAS office


Ms. Lilian Kimani Office Administrator, KLIP State Department of Livestock

Ms. Caroline Karimi Administrative support staff, KLIP State Department of Livestock

Ms. Alice Wakabochi Senior Officer Administrator, KLIP State Department of Livestock

Insurance Regulatory Authority

Mr. Godfrey Kiptum Ag. CEO & Commissioner of Insurance

IRA

Mr. Robert Kuloba Chief Manager, Policy Research & Development

IRA

Private Sector Institutions

Mr. Abdikarim Daud Livestock Sector Lead Kenya Markets Trust

Mr. Ashok Shah Group CEO APA Insurance, Apollo Group

Mr. Charles M. Wambua Head of Microinsurance & Agribusiness

APA Insurance, Apollo Group

Mr. Hassan Bashir Group Chief Executive Takaful Africa Group

Mr. Isaac Magina Senior Client Manager Africa Swiss Re

Mr. John Karanu Regional Manager East Africa Swiss Re

Ms. Mirriam Mulei Intervention Manager Kenya Markets Trust

Mr. Omar Jattani Kenya Livestock Marketing Council

42

Research Institutions

Dr. Andrew Mude Project Leader, Index-Based Livestock Insurance

International Livestock Research Institute

Mr. Duncan Khalai Market and Capacity Development Specialist


International Organizations

Dr. Alexander Jäger Project Leader, Strategic Alliance on Sovereign Climate Risk Transfer

GIZ

Mr. Amani Packmohr Advisor, Strategic Alliance on Sovereign Climate Risk Transfer

GIZ

Mr. Barry Patrick Maher Senior Risk Financing and Insurance Specialist

The World Bank Group

Mr. James Sina Consultant, Disaster Risk Financing and Agriculture Insurance


Ms. Katharina Nett Advisor, InsuResilience Secretariat

GIZ

Mr. Stanley Miyogo External Consultant GIZ

43

5.2B 19 & 20 April 2018

Executive Seminar for the National Treasury and Planning of Kenya &

County Officials

Name Position Institution

National Treasury and Planning of Kenya

Ms. Beldine Omolo Macro and Fiscal Affairs Department

National Treasury

Ms. Diana Mutisya Budget Department National Treasury

Mr. Geoffrey Sigei Resource Mobilization Department National Treasury

Ms. Isabel Joy Ochieng Financial and Sectoral Affairs Department

National Treasury

Ms. Mary Maina Macro and Fiscal Affairs Department

National Treasury

Ms. Mercy Ngacha Financial and Sectoral Affairs Department

National Treasury

Mr. Timothy Odipo Resource Mobilization Department National Treasury

County Governments

Hon. Yussuf Omar Abdi Chair Committee responsible for Agriculture

Garissa County

Mr. Issa Yarrow Kahin County Executive Committee Member

Garissa County

Mr. Mulki Salat Onle Chief Officer Garissa County

Hon. Ali Dima Leader of Minority Isiolo County

Mr. Benjamin Lopetet Chief Officer Isiolo County

Mr. Mohamed Dokata County Director of Livestock production

Isiolo County

Hon. Bishar Ibrahim Alio Chair Committee responsible for Livestock

Mandera County

Mr. Hussein Madey Deputy Director Livestock Production

Mandera County

Mr. Hawo Shanko County Executive Committee Member

Marsabit County

Mr. Moses Lengarite County Director of Livestock production

Marsabit County

Hon. Adamson Lanyasunya Chair of Agriculture Committee Samburu County

44

Mr. Vincent Learaman County Executive Member of Agriculture Committee

Samburu County

Mr. Joseph Kilonzo County Director of Livestock production

Samburu County

Hon: Adamson L Lanyasunya Chair - Liaison Committee Samburu County

Mr. Java Bonaya County Executive Committee Member

Tana River County

Mr. Nzioka Wambua County Director of Livestock production

Tana River County

Hon. Erukudi E David Chair Committee responsible for Livestock

Turkana County

Mr. Chris Ajele County Director of Livestock production

Turkana County

Hon. Hussein Abdirahman Dahir Chair Committee responsible for Livestock

Wajir County

Mr. Abdullahi Ibrahim Abdi Chief Officer Wajir County

Mr. Daud Yakub Guliye County Director of Livestock production

Wajir County


Mr. Vincent Githinji Deputy Director of Livestock Production


Mr. David Malinga Personal Assisstant to the Principal Secretary


Dr. Richard Kyuma Project Coordinator, KLIP State Department of Livestock

Mr. Tom Kinara, Communication and Network Development Officer, KLIP

State Department of Livestock

Mr. David Mwania, Monitoring and Evaluation, KLIP State Department of Livestock

Ms. Josephine Ndunge Mutiso Chief Officer Administrator, CAS office


Ms. Lilian Kimani Office Administrator, KLIP State Department of Livestock

Ms. Caroline Karimi Administrative support staff, KLIP State Department of Livestock

Ms. Alice Wakabochi Senior Officer Administrator, KLIP State Department of Livestock


Mr. Godfrey Kiptum Ag. CEO & Commissioner of Insurance

IRA

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Mr. Robert Kuloba Chief Manager, Policy Research & Development

IRA

Mr. Solomon Kitinga Chief Manager, Policy Research & Development

IRA

Private Sector Institutions

Mr. Abdikarim Daud Livestock Sector Lead Kenya Markets Trust

Ms. Ruth Buyanzi Livestock Sector Lead Kenya Markets Trust

Mr. Charles M. Wambua Head of Microinsurance & Agribusiness


Mr. Hassan Bashir Group Chief Executive Takaful Africa Group

Mr. Isaac Magina Senior Client Manager Africa Swiss Re

Mr. John Karanu Regional Manager East Africa Swiss Re

Ms. Mirriam Mulei Intervention Manager Kenya Markets Trust

Research Institutions

Dr. Andrew Mude Project Leader, Index-Based Livestock Insurance


Mr. Duncan Khalai Market and Capacity Development Specialist


International Organizations

Dr. Alexander Jäger Project Leader, develoPPP.de project „Alliance on Climate Risk Transfer Solutions”

GIZ

Mr. Amani Packmohr Advisor, Strategic Alliance on Sovereign Climate Risk Transfer

GIZ

Mr. Barry Patrick Maher Senior Risk Financing and Insurance Specialist


Mr. James Sina Consultant, Disaster Risk Financing and Agriculture Insurance


Ms. Katharina Nett Advisor, InsuResilience Secretariat GIZ

Mr. Stanley Miyogo External Consultant GIZ

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5.3 Annex 3: Speakers

Hassan Bashir

Chief Executive Officer (CEO)

Takaful Africa Group

Mr. Bashir has held key Executive positions over the last 16 years in the Insurance and technology

sectors in the East Africa Region. He has also been involved in higher education and has taught at

the United States International University (USIU) Chandaria School of Business, in Nairobi, Kenya

since the year 2001.

He is the Chairman of the Board of Directors of the Association of Kenya Insurers (AKI). Mr. Bashir

is a Mentor, an Educator and an Entrepreneur. He holds BSc International Business (IBA) USIU San

Diego and MBA (Marketing) from USIU and is currently pursuing his PHD at USIU-Africa.


Project Leader, develoPPP.de project

“Alliance on Climate Risk Transfer Solutions”

Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)

Dr. Alexander Jäger holds the position of an Advisor in the GIZ Competence Centre for Financial

Systems Development and Insurance, and leads the GIZ team for the “Alliance on Climate Risk

Transfer Solutions”, a partnership between SwissRe and the German Ministry for Economic

Cooperation and Development, represented by GIZ. In addition, Dr. Jäger is member of various global

GIZ task teams on climate risk insurance.

Prior to his engagement at GIZ, he was heading the technical assistance facility for a green finance

fund in Southeast Europe and the Caucasus region, responsible for the implementation of 80+

technical assistance projects. Dr. Jäger’s interest and expertise on risk transfer and management

started by working in the reinsurance sector and due to his PhD in the field of insurance and emerging

risks. Later, he became a Senior Consultant after several years working for Ernst & Young in the

insurance sector.

Mr. Jäger is a Certified Expert in Climate & Renewable Energy Finance (Frankfurt School of Finance

& Management) and did his PhD at the Universities of Stuttgart & St. Gallen.

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John Karanu

Head of East Africa

Swiss Re

John joined Swiss Re in 2001 as the Client Manager responsible for Ethiopia and Kenya based at the

Swiss Re's offices in Nairobi, Kenya. He later moved to Johannesburg in 2005 where he expanded

his territorial scope to include the wider East and Central Africa regions. In 2009, he relocated from

Johannesburg to Zurich as Client Manger. Further, in 2011 he was responsible for Swiss Re's

business growth in Ethiopia, Kenya, Uganda, Tanzania, South Sudan and Rwanda. He is currently

Head of East Africa.

John is a fellow of the Chartered Insurance Institute of London (FCII) and holds an MBA degree in

Strategic Management. In his pastime, he engages in farming and Real estate development.

Duncan Collins Khalai

Market and Capacity Development Specialist

International Livestock Research Institute (ILRI)

Duncan C. Khalai is a Market and Capacity Development Specialist, working for the Index Based

Livestock Insurance (IBLI) project at the International Livestock Research Institute (ILRI). He has over

5 years’ experience working on the development of market-mediated solutions aimed at promoting

adoption and scale of the IBLI product in the arid and semi- arid lands of Kenya and Ethiopia. His

work entails development and coordination of partnerships, influencing policy makers at both public

and private sectors and designing capacity development methods and extension tools. As part of

providing technical support to IBLI implementing partners, Duncan plays a critical role in supporting

research on technology and market based solutions for sustainable IBLI scale and adoption.

Before he joined ILRI, Duncan worked as an independent consultant specializing in organizational

systems strengthening, for small and medium organizations. He had previously worked as a programs

manager at a local NGO providing women’s economic empowerment through provision of

entrepreneurial training. Earlier, he worked at Innovations for Poverty Action (Kenya) as a field

associate, supporting a WASH study that examined the effects of free provision of dilute chlorine to

households via communal points of water collection.

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He holds an MBA in Entrepreneurship from Kabarak University and a Bachelor of Arts degree in

Linguistics and French from the University of Eastern Africa Baraton. He is also a certified Monitoring

and Evaluation specialist.

Robert Kuloba

Chief Manager, Policy Research and Development


Robert is currently the Chief Manager, Policy Research and Development at the Insurance Regulatory

Authority Kenya. Robert has over 20 years of service in the public sector cutting across various

sectors from agriculture, public administration, governance, tourism and finance. Robert has since

2010 been instrumental in driving corporate strategy at the IRA.

He has been a member of various working groups, committees and task forces on insurance with

recent engagements being in the area of micro insurance policy development, agricultural insurance

policy development, establishment of the insurance fraud investigation unit as well as agency

development. Robert also sits on the project steering committee of KLIP and AYII. He holds a master’s

degree in economics (policy management) and he has attended various courses on leadership and

management.

Dr. Richard Kyuma

Program Coordinator KLIP

State Department of Livestock, Ministry of Agriculture and Irrigation

Dr. Richard Kyuma is the Program Coordinator of the Kenya Livestock Insurance Program (KLIP)

jointly implemented by the Government of Kenya (State Department of Livestock), World Bank and

ILRI. He holds a PhD in Dryland resource management from the University of Nairobi. PhD Thesis

title: “Evaluation of Prosopis juliflora productivity for carbon stocks and animal feeds under climate

variability in drylands of Magadi, Kenya”.

He is also a graduate of the ITC Faculty of Geo-Information Science and Earth Observation of the

University of Twente, in the Netherlands – (MSc. Geospatial data management for Natural resource

management: Specializing in Sustainable agriculture, 2008) and a BSc. in Range Management from

the University of Nairobi, 1991.

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Isaac Magina

Senior Client Manager Europe, Middle East and Africa,

Global Partnerships

Swiss Re

Isaac Magina is a Senior Client Manager at Swiss Re's Global Partnerships team, which focuses on

bridging the protection gap through Public Private sector partnerships and Microinsurance programs.

Isaac joined Global Partnership in September 2015 from UAP-Old Mutual Limited in Nairobi Kenya

where he had worked an Agriculture underwriter for seven years. He has also worked for Bayer

Cropscience as a product manager where he played a key role in opening up new agrochemical

markets in East Africa. While at UAP, he was instrumental in setting up the agriculture insurance

business unit. His ideas helped to develop innovative crop insurance concepts including the Kilimo

Salama and several other agriculture insurance initiatives.

He is currently dedicated to working with public and private sector players to develop risk transfer

solutions and insurance for agriculture in the English speaking sub-Saharan Africa. He is an alumnae

of Egerton University in Njoro with post graduate training in Marketing and Insurance.

Barry Patrick Maher

Senior Risk Financing and Insurance Specialist


Barry Maher is a qualified actuary with experience in the non-life insurance sector, the carbon and

renewable energy markets, financial inclusion as well as disaster risk financing. From a Lloyds of

London reinsurance syndicate, to an insurance agency, to the UN, he now works for the Disaster Risk

Financing and Insurance Program of the World Bank. Key activities undertaken in his current role

include leading policy dialog and developing customized financial solutions with Ministries of Finance

to improve their financial resilience to disaster shocks. Currently, he is focusing on developing

solutions for disaster risk finance to support shock-responsive safety nets and agriculture insurance

programs. Barry holds a Bachelor’s Degree in Actuarial and Financial Studies from the University

College of Dublin and a Masters in Statistics from the University of Oxford.

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.

Dr. Andrew Mude

Principal Economist

International Livestock Research Institute (ILRI)

Andrew Mude is a Principal Economist at the International Livestock Research Institute based in

Nairobi, Kenya. His current portfolio deals largely with researching and identifying risk-management

and development interventions to help increase resilience and reduce vulnerability amongst poor

livestock-dependent households, particularly pastoral populations. Andrew leads the effort to design,

implement and evaluate Index Based Livestock Insurance (IBLI) products aimed to help pastoralists

to manage the significant drought-related livestock risks that they face. The integrated IBLI program

brings together a range of high-calibre partners ranging from national and international insurance

companies, NGOs, the Government of Kenya, researchers from across the globe, a range of donors,

and community representatives.

For this, Andrew and his team have won several prestigious national and international awards

including Kenya’s first Vision 2030 ICT Innovation Award, USAIDs inaugural Science and Technology

Pioneers Award, the Poverty Reduction, Equity and Growth Network (PEGNet) Best-Practice Award

for most innovative project. Andrew completed his doctoral degree in Economics at Cornell University

in 2006 and was a Mid-Career Fellow of the Sustainability Science Program at Harvard’s Kennedy

School in 2011. He is the 2016 Normal Bourlog Award winner.

Isabel Joy Ochieng

Economist

The National Treasury and Planning - Kenya

Ms. Isabel Joy Ochieng holds the position of an Economist in the National Treasury and Planning of

Kenya, working in the Financial and Sectoral Affairs Department within the Directorate of Budget,

Fiscal and Economic Affairs. She has over four years of experience in economic policy formulation

and analysis in areas related to financial and sectoral matters including extractive industries, regional

integration and climate and disaster risk financing. She holds a Master of Science Degree in

Agricultural and Applied Economics from the University of Nairobi.

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James Muli Sinah

Disaster Risk Financing and Agriculture Insurance Consultant


James Sina is a Disaster Risk Financing and Agriculture Insurance Consultant, currently consulting

for World Bank. His current role includes assisting the Ministry of Agriculture and Irrigation to

implement a large-scale agricultural insurance scheme under private-public partnership.

Sina has also worked with GIZ on Adaptation to Climate Change and Insurance, where he was a

component lead for agriculture insurance. Under GIZ, Sina contributed in bringing agricultural

insurance to government policy agenda and supported the development of a report to justify the

launch of a large-scale scheme agriculture insurance scheme. Before joining GIZ, he worked with

Jubilee insurance as senior underwriter for one year and with Equity Bank in credit section for four

years. Sina holds a BSc. Food Science Technology from Egerton, Master Degree on Microfinance

from Bergamo University and he is finalising a Masters course on Climate Change from Nairobi

University.

Ashok Shah

Group Chief Executive Officer


Ashok Shah is the current Group CEO of Apollo Investments Limited. He has over 40 years of

experience in Insurance. He has major in Applied Chemistry from Kingston University (UK) and is a

Chartered Insurer by profession, and is a member of the Chartered Institute of Arbitrators. Other

directorships include: Barclays Bank, Central Depository System Corporation, Reliance Insurance

Company (Tanzania), APA Insurance (Uganda) Ltd, Apollo Life Assurance Ltd, and Apollo Asset

Management.

He is the first recipient of the Think Business Life Time Achievement Award for his contribution to the

Insurance Industry in Kenya. He is also involved in many social activities, mainly in support of the

underprivileged.

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Charles M. Wambua

Head of Microinsurance & Agribusiness


Mr. Wambua is the Head of Microinsurance and Agribusiness with APA Insurance (a leading

agricultural insurer in Kenya and currently the insurance Pool lead for the Kenya Agricultural

Insurance Program (KAIP)). He has previously played key roles in the microinsurance landscape

surveys for Kenya and for Africa jointly published by Munich Re Foundation and GIZ program “Making

Finance Work for Africa”. He has over 23 years of experience in economic development programs

drawn from several countries in Africa.

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