EU contributing to concerted action on Disaster Risk Finance in Kenya
Kenya offers a great example of coordination between different development actors on Disaster Risk Finance (DRF). This has been highlighted by the approach, complementarity of activities and engagement in the frame of the EU-funded Africa Disaster Risk Financing Initiative (ADRF) and the global partnership on Disaster Risk Finance Analytics.
The ADRF initiative supported the Government of Kenya in developing a diagnostic summarizing the range of existing DRF instruments in place or planned; and a DRF strategy with the preparation of a World Bank Catastrophe Deferred Drawdown Option.
The Disaster Risk Financing and Insurance Program (DRFIP), a joint program of the World Bank’s Finance and Markets Global Practice and the Global Facility for Disaster Reduction and Recovery, with support from USAid and co-financing from the ADRF Initiative, provided technical assistance for the development of a public-private sector approach to establish the Kenya Livestock Insurance Program (KLIP) and the Area Yield Index Insurance (AYII) program which build on the Kenya Hunger Safety Net Program. The Global Partnership on Disaster Risk Financing Analytics co-financed (with USAid) the development of two interactive quantitative tools in Kenya, to support DRF policy decisions related to the agriculture insurance programs. The tools support stakeholders in quantifying indicative fiscal costing of the subsidized agriculture insurance programs, and in evaluating various coverage options.
The Global Partnership on Disaster Risk Finance Analytics provided co-financing to the DRF for Resilient Livelihoods program, established and financed by the Swedish International Development Cooperation Agency, to update a quantitative tool, developed in 2015, to estimate the costs of scaling up the national Hunger Safety Net Program and an expansion of the existing program.