Component 1: De-risking pastoral production through a package of financial services (USD 75 million)
The objective of component 1 is to protect pastoralists against recurring drought shocks with a package of financial services including drought index insurance, payment and savings.
ZEP-RE is the Implementer of DRIVE Component 1 of De-risking pastoral production through a package of financial services with a funding of USD 75 million (KES 8.615 Billion). Component 1 which has regional implementation arrangement but delivery mechanism of financial packages is through local financial institutions. ZEP-RE uses the allocated funds to:
- Subsidize livestock insurance premium;
- Promote financial saving through provision of a financial savings bonus (One off saving bonus – KES 6,000);
- Continuous financial savings bonus (15% of the savings. Capped at KES 12,000), and;
- Manage digital payments of the financial packages (insurance and savings).
Operational cost of Zep-Re will be funded through Global Risk Financing Facility (GRiF) to a tune of USD 9 million for Kenya.
