Welcome to the ZEPRE Academy’s first of many newsletters! This publication has been a long time coming and we are excited to share with you

the pulse of the insurance industry across Africa at such a time when there is a greater demand for insurers to step up and provide innovative and lasting solutions to the emerging risks around us.

The quarterly newsletters are part of ZEP-RE Academy’s initiatives to grow Africa’s insurance and reinsurance sectors through well-researched articles that highlight,

create awareness and bring visibility to the positive impact that the industry is making on the continent.

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Welcome to our procurement page where we post all of our procurement requests, including Request for Quotations (RFQs), Request for Proposals (RFPs), Request for Bids (RFBs), and other procurement notices.

We encourage all interested vendors to carefully review the information provided and submit their proposals by the deadline specified in each request. Our procurement team is available to provide assistance and answer any questions you may have throughout the procurement process.

Thank you for your interest in doing business with us. We look forward to working with you to meet our procurement needs. If you have any feedback or suggestions on how we can improve our procurement process, please do not hesitate to let us know.

The following are the requests:

  1. DRIVE IBLI -Terms and Conditions
  2. RFQ-AntiMoney Laundering System_
  3. Technical Requirements – Anti-Money Laundering System






This is a product that will provide asset protection cover that aims to keep the livestock alive and complement pastoralists savings during drought events.

The insured perils will be forage scarcity as defined by an index. The index will be based on readings from data collected from independent satellite data providers.


This is a measure that compares the total amount of forage available across the contract season with the historic average forage availability of that season for that division. It measures the forage condition over a defined period, and it is calculated by using a measure of pasture availability that is recorded by satellites, called the Normalized Differenced Vegetation Index (NDVI). The index compares the observed NDVI over a particular season, with the observed NDVI over a given historical period.


ZEP-RE is working with several insurers, who are approved financial services providers to underwrite the Benefits under this product.

Insured goods

The insured goods will be four livestock types standardized into one unit known as Tropical Livestock Unit (TLU). These are Camels, Cattle, Sheep and Goats. DRIVE IBLI sets the average value of livestock as the amount required to keep the livestock alive during the cover period as follows:

Tropical Livestock Units (TLU)

1 TLU = 1 Cow, 1TLU = 0.7 Camel, 1 TLU = 10 goats and 1 TLU = 10 sheep

Unit Area of Insurance (UAI)

UAI refers to the geographic region in which the IBLI product benefits will apply and will be determined by:


Premiums payment and Subsidy

Individuals are responsible for paying their premiums as calculated using the premium rate for the Unit Area of Insurance (UAI) they will select. The government is subsidizing a maximum of 5 TLUs insured per person per year, however pastoralists will be encouraged to insure as many TLUs as they can afford. The level of subsidy will change as advised by the government.

Geographical coverage of index

Generally, each UAI may have different levels of forage availability or scarcity in a given season. As a result, different payouts will be made in each UAI because the payments will be based on average forage scarcity for each individual UAI. Every pastoralist within the same UAI, however, will receive the same rate of payment (if the index is below the exit level in all the UAIs). 


The digital application form through USSD or agent mobile Application, the Terms and Conditions and any annexure, schedules or amendments will constitute the Policy. The DRIVE platform will digitally share important policy summary information that will constitute the proof of policy documentation. The insured can log in using USSD *800*8# through the registered mobile phone number and access the policy information digitally.

Trigger level

The index threshold below which payouts must be made is called the trigger level. Supposing the forage conditions are ranked from 1-100 with 1 being the worst and 100 the best. The trigger level is then set such that if the forage conditions for the current contract season is ranked 25 and below, the contract will pay out. Therefore, the trigger level is set at the 25th percentile. In other words, IBLI will compensate if the forage condition falls below the worst 25 percentile of seasonal pasture levels in the contract area.

Exit level

The index threshold below which the total sum insured is paid is called the Exit level. Supposing the forage conditions are ranked from 1-100 with 1 being the worst and 100 the best. The Exit level is then set such that if the forage conditions for the current contract season is ranked 5 and below, the contract will pay out in full. Therefore, the Exit level is set at the 5th percentile. In other words, IBLI will make full payment of the total sum insured if the forage condition falls below the worst 5 percentile of seasonal pasture levels in the contract area.

Insured Events

The policy offers protection against prolonged forage scarcity ONLY because of drought.


This product pays out a sum insured if the index falls below the level at which the forage conditions are scarce as determined by the set index.

Coverage period

The coverage period is 12 months split into 2 seasons i.e., Long rains season and short rains season.

This period will expire after one year. The contract period of the insurance cover cannot be changed and is non-refundable once bought. However, cover is renewable on an annual basis.

Seasonal cover periods

Within each season there are two periods i.e.

Periods Description
Early Dry Spell Runs from the start of the season to mid-season.
Late Dry Spell Runs from mid-season to the end of the season.


 Sum Insured

This is the total amount of money required to keep the livestock alive within the cover period. We calculate this by multiplying the average value of livestock by the number of livestock that the pastoralist has chosen to insure.

See example below.

4 cows = 4 x1 x KSH 16,820 = 16,820

3 camels = 3 x (1/0/7) x KSH 16,820 = 72,086

35 goats = 35 x 0.1x KSH 16,820 = 58,870

The pastoralist can insure a different number of livestock in each sales window.

Contributions or premium

Contributions are the price paid for insuring livestock. Contributions will be averaged at UAI level, each UAI will have a different contribution level. Contributions are priced as a percentage of the value of the Sum Insured. It is calculated as (Sum INSURED x Contribution rate (premium rate)). Contributions are non-refundable and will be payable annually in advance. The minimum contribution will be dependent on the premium rate calculated for each UAI per TLU. The payable contributions or premium will be net of the applicable premium subsidy.


A beneficiary is the person who owns and has INSURED livestock as specified and will receive the proceeds in the event of a claim.

 Maximum number of policies

A pastoralist cannot have multiple policies covering the same livestock. Each season a pastoralist will receive a new annual policy if they increase the number of animals insured.

Policy continuity

The policy will cease at the end of each cover period but may be renewed upon payment of the required contributions.

Outstanding Contributions

If there are any outstanding premiums when a benefit is due, the Company may deduct the arrears from the benefit payable. However, the pastoralist is covered after they pay premiums on or before the sales window closing (the last date provided to buy insurance before the insurance cover starts).

Contribution Rate Review

Contributions are reviewed on an annual basis, with changes impacting the insured on their next policy anniversary.


The IBLI Index for the season determines whether a payout will be made and is the basis for calculating the percentage payout to the pastoralists.

Pastoralists can expect two payouts per season, i.e., early payout in the middle of the season and late payout after the end of the season.

Determination of payouts

Pastoralists are paid when forage conditions are below the worst 25 percentile of the seasonal pasture levels in the contract area (UAI). It is important to note that pastoralists are paid based on the level of forage scarcity for the UAI and not on farm level basis.

Validity of payouts

Insured pastoralists are only paid when the amount of forage falls below the trigger level and will not receive payments if the forage availability is more than the trigger level based on the NDVI readings. Pastoralists who have not paid a contribution are not covered by the IBLI product, and will not receive payments, even during a drought.


Payouts are only made in relation to drought effect on pasture in the insured areas. Payouts will not be made based on actual loss of animals but the estimated effect of drought on pasture using NDVI indexes. Other types of losses are not covered. For instance,

 Enrolment / one-off savings bonus

Only pastoralists who have paid the minimum contribution required for insurance will be eligible to participate in this. To qualify for this bonus a pastoralist needs to have insured a minimum of 3 TLUs. Pastoralists will be incentivized to save in a savings account rather than in cash and will be eligible for the enrolment bonus and ongoing savings bonus. The pastoralist is only eligible to enrollment bonus once during the project lifetime upon purchasing insurance for the required minimum TLUs. The pastoralist is required to open bank accounts from the approved banks where the bonus will be deposited. The bonus will be locked-in for 2 months and will not be accessible during this time as a way of creating a savings culture. This amount shall be reviewed annually and subject to the availability of the savings component incentive funds.

Ongoing saving bonus

Pastoralists will receive this ongoing bonus for any period the savings are held in the account. The 15% bonus is payable once per year and will be calculated based on the average account balances for the year (prorated balances in the account). The longer the money stays in the account, the higher the average savings will be. The enrolment bonus and claims amount will not be used in calculating this amount.

 Governing Laws

The laws of Kenya, whose courts shall have jurisdiction in any dispute arising hereunder, will govern this, Policy. The Benefits payable and the contribution rates under this Policy may be changed if any legislation is changed. If these changes are made, the Beneficiary will be notified in writing.

Territorial limits

Pastoralists in Kenya.

Surrender values.

No surrender values are payable under this Policy.


Contributions and Payouts are expressed and payable in the legal tender of Kenya.

Revocation, Alteration, Amendment

The Insurer reserves the right to amend, revoke, vary or alter any Terms and Conditions of this Policy provided that the Beneficiary is given thirty (30) days’ notice of such an amendment.


The application form, the Terms and Conditions and any amendments thereto constitute the sole Agreement between the parties. No contrary representation or agreement shall be of any force unless reduced to writing and signed by both parties.

Dispute Resolution /Queries

In the event of a dispute or any queries, please contact the following:

Email: drivekenya@zep-re.com | Telephone: + 254 709 973 301




  1. Office Administration Manager – DRIVE
  2. Digital Transformation Manager
  3. Assistant KAM Zambia
  4. Accountant Sudan
  5. Digital Solutions Analyst – Infrastructure

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  2. ZEP RE Stakeholders Engagement Plan
  3. ZEP RE Grievance Mechanism
  4. ZEP RE ESMS Guidance Note_Insurance Intermediaries

11 April 2023: Boost for Pastoralists in Kenya as the Government is set to launch a $140M project to protect them against severe drought and enhance their inclusion in the broader economy

The Government, through the State Department for Livestock Development (SDLD), in partnership with ZEP-RE (PTA Reinsurance Company), Kenya Development Corporation (KDC) and the World Bank Group (WBG), are set to formally launch the De-Risking, Inclusion and Value Enhancement of pastoral economies (DRIVE) project.

The DRIVE project aims to de-risk pastoral systems at the primary level through an integrated package of financial services that includes drought index insurance, savings, digital accounts and financial education, and at the value chain level through de-risking private sector investments that provide reliable markets to pastoralists.

Speaking ahead of the launch, the Principal Secretary for Livestock Development, Harry Kimtai, said the project is expected to have a positive impact on enhancing the climate resilience of pastoral communities, addressing climate change, strengthening commercialization of livestock production, and ensuring the inclusion of the marginalized and vulnerable groups such as women and youth.

“The DRIVE project is a critical step towards the sustainable development of pastoralist communities in Kenya. By providing them with the necessary support and resources, the project will help increase their resilience and enhance their economic participation while promoting a more sustainable and inclusive economic development model in the country,” Mr. Kimtai said.

As part of the Horn of Africa Initiative, the DRIVE project will build the resilience of pastoral communities in Kenya, Ethiopia, Somalia and Djibouti. Over 250,000 households are expected to benefit from the project representing 1.6 million pastoralists and their dependents across the four countries over a five-year period.

In Kenya, over 150,000 pastoralists are expected to benefit from the project across the Arid and Semi-Arid Lands (ASALs). The project is also expected to create markets around the livestock value chain, enhance regional cooperation and peacebuilding, climate mitigation (improvement, fodder conservation and increased productivity), and closing the gender gap in access to financial services.

“Today marks a pivotal moment in Kenya’s development journey as we launch the DRIVE project. Our joint commitment to unlocking the full potential of pastoral economies is unwavering, and DRIVE is a big step towards achieving sustainable and inclusive development. We are confident that the project will drive positive change, creating new opportunities, empowering communities, and fostering resilient, thriving economies of the ASAL regions,” KDC Acting Director General Norah Ratemo said.

In Kenya, the project has two components. Component 1 involves de-risking pastoral production through a package of financial services. This component aims to protect pastoralists against recurring drought shocks with a package of financial services, including drought index insurance, savings for resilience, digital accounts and financial education and awareness creation. ZEP-RE (PTA Reinsurance Company), the regional implementing agent, is delivering through collaboration with the government, development partners and private sector companies. The regional management of this component helps mobilize the private sector and create the scale necessary to transfer the risk of drought to the international insurance market.

“ZEP-RE is committed to supporting the regional financial inclusion agenda. We are honoured to be the regional implementation partner for the DRIVE project, in partnership with the Government of Kenya and collaborating with the private sector players. ZEP-RE is particularly keen to ensure equity empowerment of pastoral communities by focusing on innovating how women, youth, and people with disability would also access financial services and linkages to markets and trade-related opportunities under component two. We look forward to scaling financial packages that support the resilience of the communities against various shocks,” Hope Murera, Managing Director and CEO, ZEP-RE (PTA Reinsurance Company) said.

Component 2, with a budget of USD 65 Million, aims to ensure that pastoralists get better value for their livestock. It will do so by upgrading standards and equipment to check the conformity of livestock and livestock products to international standards so that Kenya can strive to export meat products with more value rather than live animals, facilitate the regional livestock trade, and de-risk private investment in the livestock value chain that benefit pastoralists with reliable contracts. The implementing agent for Component 2 is through (KDC and SDLD.

The current drought crisis shows that a new approach to responding to drought is needed, one that relies on pre-arranged financing instruments to put money into pastoralists’ pockets at the onset of the drought rather than on assistance after the drought has been declared, which may arrive after the animals have perished.

“The project expands access of pastoralists to a package of financial services, so that they may receive insurance payouts in their accounts in case of severe drought and use their savings in case of moderate shocks,” said Keith Hansen, World Bank Country Director.

“It aims to provide pastoralists with reliable livestock markets where they get better value for their livestock by selling more regularly and directly to the livestock processors and exporters. This financial protection against drought frees pastoralists from keeping many animals to protect themselves against drought shocks.

DRIVE will be implemented in 21 ASAL counties of Turkana, Marsabit, Mandera, Wajir, Garissa, Tana River, Isiolo, Samburu, Meru, Tharaka Nithi, Baringo, West Pokot, Narok, Laikipia, Kajiado, Makueni, Kitui, Lamu, Taita Taveta, Kilifi and Kwale and the beneficiaries are Pastoral groups that are sufficiently structured around productive activities.


About ZEP-RE (PTA Reinsurance Company)

ZEP-RE (PTA Reinsurance Company) is a leading reinsurer in Africa and a specialized institution of the Common Market for Eastern and Southern Africa (COMESA). The Company was established in 1990 under the then Preferential Trade Area, a precursor to COMESA, to develop the insurance and reinsurance industries and support capacity building. 

ZEP-RE has a specific mandate to promote insurance penetration in the region and provide technical assistance to the insurance industry of the region. ZEP-RE skills the industry and develops technical capacity in the region through the ZEP-RE academy, training stakeholders across the different COMESA countries. ZEP-RE works with Member States to develop products and services to ease access to insurance services to deliver on the mandate of deepening financial inclusion. Such products include initiatives on affordable housing, agriculture insurance, facilitation of regional trade, insuretech to optimize distribution and de-risk insurance, among many other initiatives.

The Company is headquartered in Nairobi, Kenya, with regional Hubs in Zimbabwe and Côte d’Ivoire and has country offices in Uganda, Zambia, Ethiopia, Sudan, Rwanda, and the Democratic Republic of Congo.

For more information visit www.zep-re.com

About Kenya Development Corporation (KDC)

The Kenya Development Corporation (KDC) was created on 1st July 2021 as a cross-sector DFI out of the merger of three DFIs, ICDC (Industrial & Commercial Development Corporation), TFC (Tourism Finance Corporation) and IDB Capital.  

KDC’s mandate is to promote sustainable economic development by providing development finance, infrastructure finance and business support and advisory services to medium and large-scale industries, infrastructure projects and commercial undertakings in target sectors in Kenya and elsewhere.  The Corporation’s model is to partner with the private sector to catalyze development.

The Government’s vision is for KDC to become Kenya’s strongest DFI playing a catalytic role in the country’s economic development while addressing critical gaps and market failures that require long-term funding which cannot be met by commercial banks in target sectors. To find out more about KDC visit www.kdc.go.ke .

About World Bank

The World Bank Group is one of the world’s largest sources of funding and knowledge for developing countries. Its five institutions share a commitment to reducing poverty, increasing shared prosperity, and promoting sustainable development.

The World Bank Group has set two goals for the world to achieve by 2030: i) End extreme poverty by decreasing the percentage of people living on less than $1.90 a day to no more than 3% and ii) Promote shared prosperity by fostering the income growth of the bottom 40% for every country.

The World Bank is a vital source of financial and technical assistance to developing countries around the world. We are not a bank in the ordinary sense but a unique partnership to reduce poverty and support development. The World Bank Group comprises five institutions managed by their member countries.

Established in 1944, the World Bank Group is headquartered in Washington, D.C. We have more than 10,000 employees in more than 120 offices worldwide.


Kenya Community Development Foundation (KCDF) – a public foundation that supports Kenyan communities to initiate and drive their development agenda recently collaborated with ZEP-RE, a leading African reinsurer, to deliver an eight-month mentorship program to a group of 291 teenage boys at Highway Secondary School in Nairobi. The program was dubbed MENTENDA (Men Taking Action). MENTENDA focused on mentoring the “now forgotten” boychild in the community in topical issues such as career development, financial literacy, confidence, conflict resolution, avoiding and battling addiction and peer pressure amongst other things.

On Graduation Day (1 April 2023) an assembly was held at the school hall to address all participating students. Certificates and memorabilia (t-shirts, notebooks, and pens) were handed out to everyone involved as appreciation for their contribution to the project and for having seen the program through.

There-after the days program proceeded with the participants cleaning the school’s environment in the spirit of community service, helping the boys nurture the spirit of care and love for their surroundings. The students cleared the bushes, cleared litter, moped the floors, unblocked drainage channels and tidied up the school grounds. The cleaning exercise aimed to foster a clean and healthy environment for the students to learn in.

ZEP-RE then presented the teaching staff of the school with 40 new chairs to address the shortage concern. The KCDF and ZEP-RE teams then collaborated with the school’s administration and students to plant trees around the school compound, aiming to promote environmental conservation and once again encourage students to take responsibility for their surroundings.

The above notwithstanding, the most significant aspect of the program was the mentorship itself. The men from ZEP-RE and KCDF, led the mentoring sessions over an 8-month period using spare time after work every Thursday. The sessions aimed to prepare the students for life outside of school and inspire them to make a positive impact on their communities as they graduate to enter Form 4. The younger students of Form 1 to Form 2 will now be looking to them as their role models.

The success of this project was highly influenced by the partnership between KCDF and ZEP-RE. The team demonstrated a shared passion for developing and empowering young men, and this collaboration served as a critical component in the success of the project. The initiative helped to improve the school environment and equipped the young men with essential life skills that will shape their futures.

KCDF and ZEP-RE are dedicated to continuing their partnership and will work together to plan more programs in the future.

We would also finally like to sincerely thank all who took on the challenge and generously volunteered their valuable time and resources towards the cause. Their unwavering commitment and dedication have not gone unnoticed, and their selfless actions have made a significant impact in the community. We thank them for their contributions and for setting a positive example for others to follow. Indeed, Men Tenda (Men Take Action).