Kenya’s economy lost an estimated Ksh 1.2 trillion (USD 12 billion) due to the effects of drought between 2008 and 2011.
According to an article in Kenya’s Standard (28 April 2016), more than 13 million people were affected in 2011 by a combination of drought, conflict and economic crisis.
The article quoted International Livestock Research Institute (ILRI) research (in the 2014-2015 corporate report), which estimates that of the Sh1.2 trillion loss, 27% of it, or USD 3.3 billion (Ksh 337 billion), occurred in the livestock sector. This is slightly over 20% of the country’s gross domestic product (GDP), or the total value of goods produced by the country.
These and other impacts of drought were discussed at the sixth Intergovernmental Authority on Development (IGAD) Drought Disaster Resilience and Sustainability Initiative, which was launched by Mwangi Kiunjuri, the cabinet secretary for devolution in Kenya in April 2016. He said that besides the immense human suffering caused by drought, the economic cost of drought is also enormous.
Ambassador Mahboub Maalim, the chairperson of IGAD, noted that as a result of some resilient initiatives put in place by Kenya, such as the Index-Based Livestock Insurance, the country for the first time was able to deal with drought without seeking international aid.
Read the whole story Kenya lost Sh1.2tr to drought in 3 years.