Kenya plans to resume insurance with the Africa Risk Capacity (ARC) against droughts and floods amid changing weather patterns that are increasingly threatening the country's food security.
The country is set to restart paying premiums next month to the ARC, an insurance agency of the African Union that helps member countries mitigate against natural calamities, reported The Standard. Drought is the largest natural calamity in the sub-Saharan region followed by floods, according to ARC.
Kenya, though a member of the ARC, has been inactive for close to three years, last making a payment in 2016.
“We paid our first premium to the ARC in 2015. We, however, have not paid for the last two years. At the moment, existing disaster risk financing instruments in Kenya, except ARC, cannot adequately finance medium high-impact disasters and a wider range of disasters,” said National Drought Management Authority chief executive James Oduor.
“The instruments, unlike ARC, also have limited geographical coverage. ARC has a huge potential to finance medium-high impact disasters.”