The Takaful Livestock insurance cover will help herders mitigate against livestock deaths resulting from fodder shortage due to prolonged dry weather, Takaful Insurance said.
"Drought insurance is one important way to help livestock keepers maintain food security even in very harsh environments," said Andrew Mude, ILRI's index-based livestock insurance project leader.
According to the company, payments will be issued when forage available to the insured livestock fall below the given threshold which will be determined by satellite data.
ILRI, under the leadership of Andrew Mude, will provide the satellite data and global aid agency Mercy Corps will coordinate public awareness campaigns.
Company experts have stated that in arid and semi-arid regions, keeping livestock can be a more effective coping strategy than cultivating crops if herders have options for reducing their vulnerability to drought.