Compensated for drought

BR-EL_shamsa_kosar.jpgShamsa Kosar is one of over 100 pastoralists in Wajir who have been compensated for livestock losses © ILRI/R Gangale

‘Sharia-compliant’ livestock insurance paid out to pastoralists in Kenya

Over 100 pastoralists (30 women and 71 men) from Wajir County in Kenya have been compensated for livestock losses suffered between December 2013 and March 2014. They were benefiting from an index-based livestock insurance scheme, an initiative of the International Livestock Research Institute (ILRI) and a sharia-compliant insurance company, Takaful Insurance Africa. “This payout is critical for building confidence in the concept of insurance for the pastoral, drought-prone regions of East Africa, where life revolves around livestock and droughts can bring disaster,” says Andrew Mude, who leads the programme at ILRI.

Hassan Bashir set up Takaful Insurance 3 years ago, which - unlike ordinary insurance schemes prohibited by Islam - only takes a management fee from clients. The company is named after the Islamic concept of takaful, in which risks are shared among the community. Any surplus money after payments are made is distributed equally to the remaining policyholders. “Our goal is to show pastoralists that they can use a fair and ethical business model to protect their assets from a natural hazard of keeping livestock in East Africa,” Bashir explains.

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