El Nino Cover: Tana River Farmers, Households Receive KSh 14 Million Floods Insurance Compensation

• Small-scale farmers in Tana River county received a compensation of KSh 14.1 million for losses from the current floods affecting the region
• The residents of Tana River county have suffered significant losses and have been displaced by the floods
• The insurance policy was crafted to safeguard small-scale farmers in flood-prone regions from the severe impacts of floods,

Elijah Ntongai, a journalist at TUKO.co.ke, leverages more than three years of expertise in financial, business, and technology research, providing insights into both Kenyan and global economic trends.

Small-scale farmers in Tana River county, who took flood insurance policies, received a compensation payout of KSh 14.1 million for losses resulting from the current floods affecting the region.

Under the Index-Based Flood Insurance (IBFI) policy, 300 households in Madogo Ward received a financial boost after suffering losses and being displaced by the floods in the region.

Purpose of the flood insurance policy

The policy, crafted to safeguard small-scale farmers in flood-prone regions from the severe impacts of floods, employs technology-based innovations to predict the likelihood of floods and expedite the process of claims payments.

“we will not hesitate to step into the unknown if it enhances the resilience of the vulnerable within our community,” said Tom Gitogo, Britam Group managing director.

“We measure rainfall using satellite data, and within two days we can determine whether a rainfall will trigger flooding or not. The Tana River water level is measured using automated water gauges with data being available hourly within a day of the incident,” added Saurabh Sharma Britam director for emerging market consumers.

Roles played by institutions in the partnership

Under the partnership, Oxfam covers the KSh 7,000 annual premiums for each of the 300 vulnerable households in Upper Tana and facilitates payments to the insured households.

Risk Shield analyses river levels and satellite data to assess compensation, while Swiss Re reviews and approves the payout, allowing Britam to release compensation to Oxfam, the master policyholder.

Poor land-use planning contributes to vulnerability of cities to flooding

In other related news on TUKO.co.ke, the Architectural Association of Kenya (AAK) released a report titled “AAK Built Environment Report 2023,” which revealed that poor land-use planning and inadequate infrastructure contribute significantly to the vulnerability of cities to flooding.

The report suggests an approach to address flooding in cities is the restoration and maintenance of clean rivers as a tool for flood mitigation.

“Through partnerships between environmental entities and county governments, existing environmental regulations could be strengthened and enforced as a critical step in preventing industrial pollution and illegal dumping into rivers,” the report reads.