JICA Research Institute

Research

Empirical Study on the Weather Risk Coping Strategy for Households in Rural Kenya

Past Research Projects

The vast majority of agricultural risk factors are related to weather conditions. Over the years, farmers have taken a variety of measures to cope with these risks, including introducing irrigation systems, diversifying farm products, and establishing mutual aid organizations. However, agricultural output worldwide has been declining since 2007 due to the impact of repeated droughts. Given this situation, insurance as a means of hedging risk has drawn increasing attention. The purpose of this research is to study the feasibility of introducing weather index insurance in Kenya. Since the country has less farmland that can be irrigated, weather conditions are more likely to cause enormous losses to all famers who have built mutual aid relationships. Therefore, risk mitigation that relies on farmers' mutual aids is a less than ideal solution. This research will be used to understand the effectiveness of insurance in Kenya and what is needed in its rural villages, thereby contributing to the formulation of policy proposals for JICA's development assistance projects.

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