Pastoralists (MCV Pilot)
A pilot with Mercy Corps Ventures (MCV) to provide anticipatory cash transfers to pastoralist communities in two Kenyan counties: Kajiado and Laikipia.
Thank you for providing livestock insurance to pastoralists in Kenya.
About the campaign
- Pastoralists are people whose primary source of income and food is livestock and livestock products. Pastoralist communities live a nomadic lifestyle which entails grazing animals on open-access pastures and migrating with them in response to seasonal variations.
Changing weather patterns induced by climate change are threatening the livelihoods of pastoralists communities in the eastern Horn of Africa. The region is experiencing one of the worst droughts which already resulted in the loss of over 7 million livestock and put millions at risk of starvation in Ethiopia, Kenya, and Somalia.
The goal of this campaign is to provide financial support to enrolled pastoralists in the Kenyan counties Kajiado and Laikipia if the pasture conditions, as measured by remote-sensed technology, are deemed distressful. The target cover amount of $75 per pastoralist intends to subsidize the provision of food for one livestock animal over a period of six months.
- This campaign is a joint initiative between Mercy Corps Ventures, Fortune Credit, Shamba Network, and DIVA Technologies to test the use of blockchain and smart contracts to deliver anticipatory cash transfers ahead of climate shocks to pastoralist communities in the Horn of Africa. Learn more
- 333 Pastoralists
- $75 target cover amount per pastoralist
- $25’000 total cover for the campaign
- Pastoralists in Kajiado and Laikipia (Kenyan counties)
- The pasture conditions are assessed using an indicator called NDVI (Normalized Difference Vegetation Index). The NDVI is a widely-used metric for quantifying the health and density of vegetation using sensor data. It serves as a reasonable metric for assessing drought as vegetation density generally correlates with rainfall patterns.
For this campaign, the average NDVI observed between 1st October and 22th December 2023 is used and reported by the Shamba oracle on 2nd January 2024 to ensure full data coverage of the observation period. The NDVI is shifted by 1 for technical reasons. The donation release profiles for each pilot location were derived based on in-depth analysis of historical NDVI patterns in the respective regions. Learn more
The examples provided below illustrate the released donation amounts in % of the deposited funds in specific sample scenarios. These scenarios are based on the donation profiles for the respective pilot locations, with a 50/50 weighting.
- 100% - if the trigger metric is at or below 1.45 for Kajiado and at or below 1.54 for Laikipia
- 50% - if the trigger metric is at or below 1.45 for Kajiado and at or above 1.64 for Laikipia
- 20% - if the trigger metric is at 1.47 for Kajiado and 1.59 for Laikipia
- 0% - if the trigger metric is at or above 1.51 for Kajiado and at or above 1.64 for Laikipia
Pilot Announcement - AgFunder
Mercy Corps Ventures pilots the blockchain to get cash transfers to communities ahead of climate shock
Blog - DIVA Protocol
Event-driven conditional donations - A pilot program by DIVA Technologies AG, Fortune Connect and Shamba Network