dc.description.abstract | Narok is a leading agricultural region in Kenya. It is inhabited by both large and
smallholders growing rain fed wheat and other field crops that are vulnerable to severe
weather shocks. In extreme cases, many farmers incur heavy financial losses and
therefore are not able to move out of poverty trap with resultant household income and
food insecurity. Weather Index based crop insurance has been seen as an innovative
agricultural risk management strategy that can be considered as an effective mechanism
to address vulnerability to catastrophic weather risk in rural regions of Kenya, including
Narok. This study evaluated current household livelihood and risk management
strategies and farmer interest in weather index insurance. Data from 174 participants was
collected using a methodology that included focus groups, questionnaires, and personal
interviews.
Despite limited access to formal financial services, Narok farmers generally rely on
formal and informal loans from various financial institutions for them to manage adverse
impacts of natural disasters, such as drought, floods, pests and diseases. Like many
regions of the developing world, Narok County farmers suffer heavy financial losses due
weather shocks. A majority of interviewed participants were interested in weather index
insurance after they understood its basic concept; however, respondents expressed
concerns regarding basis of its risks and implementation.This study is an evaluation
the weather related production risks that wheat farmers in Narok County face, the
various risk management options available for them and provides policy
recommendations that can be extrapolated in developing an index based crop insurance
policy among Kenya farmers. | en_US |