5 research outputs found

    Evaluating the Poverty-Reducing Impact of Index-Based Livestock Insurance in Kenya’s Arid Regions: Evidence from Hadado Sub-County

    No full text
    Repeated droughts in Kenya’s arid and semi-arid regions erode livestock assets and perpetuate poverty among pastoralist households. Index-Based Livestock Insurance (IBLI) offers potential for mitigating such risks, yet empirical evidence of poverty reduction remains limited. This study analyzed primary data from 286 households in Wajir County using a Difference-in-Differences (DiD) regression framework to estimate the effect of IBLI on household poverty. The results demonstrate that IBLI participation significantly reduces poverty, with insured households experiencing a 1.35-point decline in the poverty index relative to non-participants (B = −1.350, p = .001). Moreover, the interaction between IBLI and the midline phase indicates an additional reduction (B = −1.253, p = .014), suggesting that program benefits strengthened as coverage expanded and implementation improved. These findings reveal a cumulative impact, where early gains deepen over time with sustained exposure to insurance. The results align with theoretical and empirical literature showing that index insurance protects assets, smooth consumption, and prevents poverty traps. Policy recommendations emphasize awareness creation, affordability, and timely claim settlement to enhance uptake and strengthen IBLI’s role as a social protection mechanism in drought-prone regions

    The Role of Index-Based Livestock Insurance in Enhancing Household Food Security among Pastoralists in Hadado Sub-County, Kenya

    No full text
    Pastoralist households in Kenya’s arid and semi-arid lands face recurrent droughts and climate variability, which undermine livestock-based livelihoods and compromise food security. Index-Based Livestock Insurance (IBLI) has been promoted as an adaptation tool that provides payouts based on satellite-derived vegetation indices rather than direct household-level loss assessments. This study examines the role of IBLI in enhancing household food security in Hadado Sub-County, Wajir, Kenya. Primary data were collected from 286 randomly selected households using a semi-structured questionnaire, and Propensity Score Matching (PSM) was employed to estimate food security outcomes. The results show that IBLI participation significantly reduced reliance on less-preferred foods (ATT = 0.206, p < .05), indicating a protective effect on dietary quality during droughts. However, no significant impacts were observed on food run-outs (p = 0.46) or skipped meals (p = 0.30). Probit regression further revealed that household size (β = −0.043, p = 0.098) and age of the household head (β = −0.021, p = 0.105) were negatively associated with uptake, while gender was not statistically significant (β = −0.082, p = 0.618). Qualitative evidence indicated that payouts helped households avoid distress sales of livestock and purchase food, though basis risk and limited financial literacy constrained effectiveness. These findings suggest that IBLI supports dietary diversity in drought-prone pastoral systems, but complementary measures such as financial literacy training, gender-sensitive programming, improved market connectivity, and emergency aid are needed to maximize its food security impacts
    corecore