MICROCAPITAL BRIEF: Equity Bank, UAP Insurance Limited, and the International Livestock Research Institute (ILRI) to Launch Program that Incorporates Satellite Technology to Provide Drought Insurance for Livestock Herders

Equity Bank, a commercial bank based in Kenya; UAP Insurance Limited, an East African insurance provider based in Kenya; and the International Livestock Research Institute (ILRI), an independent institute based in Kenya, will launch a program that allows herders to purchase insurance for cows, goats, sheep or camels in case of starvation during a drought [1,2,3].Satellite technology will be used to determine the extent of droughts based on how brown or green vegetation becomes [1]. Insured herders deemed to have been affected by drought will be provided with automatic payments [1]. The program will officially launch in the Marsabit district of Eastern Kenya, and may be replicated in West Africa and Southern Asia if it is successful [1].

By Christopher Maggio Research Assistant

About:
Equity Bank

Description:
Equity Bank is a major bank based in Nairobi, Kenya. It was founded in 1984. It provides loans, savings, and fund transfer services, and is funded through its savings deposits and shareholder capital. It accounts for 52 percent of bank accounts in Kenya with over 4.1 million accounts. It is involved in microfinance operations not only in Kenya, but also in Southern Sudan and Uganda through its subsidiary, Equity Bank Uganda.

Microfinance Information Exchange (MIX) Profile:
http://www.mixmarket.org/mfi/equity-bank

Organization’s Website:
http://www.equitybank.co.ke/index.php

Just the Facts:
– Country of Incorporation: Kenya
– Year Founded: 1984
– Total Assets: USD 987.6 million (as of 31/Dec/08)
– Gross Loan Portfolio: USD 535.8 million (as of 31/Dec/08)
– Number of Active Borrowers: 542,249 (as of 31/Dec/08)
– Area of Operation: Kenya, Southern Sudan, Uganda
– Participant(s)/Backer(s)/Investor(s): Helios EB Investor, OPIC, CDC-UK
– Products: Loan, voluntary savings, fund transfer services, training and consulting.
– CFO: Allan Mwangi

Contact Information:
HEAD OFFICE
Ragati Road, NHIF Building, 14th floor,

Address : P.O.Box 75104-00200, Nairobi.
Pilot Lines: +254 020 2262000
Contact Centre: +254 020 2744000
Fax: +254 020 2737276
Website: http://www.equitybank.co.ke/index.php

Additional Resources:
MICROCAPITAL.ORG STORY: Equity Bank of Kenya Reaps Pre-Tax Profits from January to September of 2009 that are 48% Higher Than the Same Period from 2008

MICROCAPITAL.ORG STORY: Daily Monitor of Uganda Reports on Progress of Equity Bank Uganda, Bank Formed After Acquisition by Equity Bank of Kenya

Equity Bank Financial Report 2008

MicroCapital’s Microfinance Universe profile: Equity Bank

About:
UAP Insurance Limited

Description:
UAP Insurance Limited is an insurance provider based in Nairobi, Kenya, that operates in Kenya, Uganda, and Southern Sudan. It was formed in 1994 after the merger of Union Insurance and Provincial Insurance. The company’s products include commercial, life, travel, corporate medical, and political violence and terrorism insurance. Additionally, along with Equity Bank, a commercial bank in Kenya, UAP Insurance has launched a program that incorporates satellite technology to provide herders with insurance for their livestock in the event of drought and subsequent starvation.

Organization’s Website:

http://www.uapkenya.com/default.asp

Contact:
Operations
Zipporah Mungai
General Manager, Operations
+254 2850501
zmungai@uapkenya.com

Additional Resources:

MicroCapital’s Microfinance Universe profile: UAP Insurance Limited

Bibliography:
[1] Reuters Africa article entitled ‘Kenyans get satellite insurance for cows, camels’: http://af.reuters.com/article/commoditiesNews/idAFLDE60K1UZ20100121
[2] Equity Bank: http://www.equitybank.co.ke/index.php
[3] UAP Insurance Limited: http://www.uapkenya.com/default.asp

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