Index-Based Weather Insurance
Project Briefing Note
Global efforts to reduce the impact of climate change on livelihoods and food security are increasing. As in many developing countries, in Kenya the majority of households depend on agriculture, whether directly or indirectly, for their livelihoods. In 2008, the country’s agricultural sector contributed an estimated 23.4% of the total GDP.1 The incomes of farmers are particularly at risk when calamities from droughts to excessive rainfall occur. Weather perils lead to reduced agricultural productivity and, occasionally, serious famines. The secondary effect is decreased investment in the agricultural sector, further threatening food security and livelihoods.