Kenya is exploring climate risk insurance mechanisms to safeguard households from financial losses caused by climate-related disasters, according to a human rights-based analysis by Transparency International Kenya and Germanwatch.
The initiative responds to escalating climate impacts, including prolonged droughts, which threaten fundamental rights such as access to water, food, and shelter. The study highlights insurance models that prioritize marginalized communities and ensure transparent grievance mechanisms.
African and Asian Resilience in Disaster Insurance Scheme (ARDIS), launched in 2019, covers droughts in Kenya, Malawi, Mali, Zambia, and Cambodia, as well as cyclones in Myanmar. The program, led by VisionFund International and Global Parametrics, aims to support women farmers and expand to flood coverage.
The African Development Bank's Africa Disaster Risks Financing (ADRiFi) program, active from 2019 to 2023, focuses on enhancing climate risk management for regional member states. It includes tools for risk assessment, disaster response, and adaptation strategy reviews at national and sub-national levels.
Insurance models emphasized by the organizations include non-discriminatory access, community participation, and leveraging existing local structures. Payouts would trigger based on index thresholds, such as rainfall levels, rather than individual claim settlements.
