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

Author

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  • Nelson, Tore Kipngetich
  • Kinyua, James Muita
  • Isaboke, Hezron Nyarindo
  • Chege, Samwel Macharia
  • Cheruiyot, Jaret Kiprotich

Abstract

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.

Suggested Citation

  • Nelson, Tore Kipngetich & Kinyua, James Muita & Isaboke, Hezron Nyarindo & Chege, Samwel Macharia & Cheruiyot, Jaret Kiprotich, 2025. "The Role of Index-Based Livestock Insurance in Enhancing Household Food Security among Pastoralists in Hadado Sub-County, Kenya," Asian Journal of Agricultural Extension, Economics & Sociology, Asian Journal of Agricultural Extension, Economics & Sociology, vol. 43(9).
    • Handle: RePEc:ags:ajaees:389087
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    References listed on IDEAS

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    1. Sommarat Chantarat & Andrew G. Mude & Christopher B. Barrett & Michael R. Carter, 2013. "Designing Index-Based Livestock Insurance for Managing Asset Risk in Northern Kenya," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 80(1), pages 205-237, March.
    2. Carter, Michael R. & Little, Peter D. & Mogues, Tewodaj & Negatu, Workneh, 2007. "Poverty Traps and Natural Disasters in Ethiopia and Honduras," World Development, Elsevier, vol. 35(5), pages 835-856, May.
    3. Michael Carter & Alain de Janvry & Elisabeth Sadoulet & Alexandros Sarris, 2017. "Index Insurance for Developing Country Agriculture: A Reassessment," Annual Review of Economics, Annual Reviews, vol. 9(1), pages 421-438, October.
    4. Michael Carter & Alain de Janvry & Elisabeth Sadoulet & Alexandros Sarris, 2017. "Index Insurance for Developing Country Agriculture: A Reassessment," Annual Review of Resource Economics, Annual Reviews, vol. 9(1), pages 421-438, October.
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