When Cows Attack (with video)!
16 March 2010 at 07:57 kf10kevin 11 comments
Juhudi Kilimo CFO: Kevin, when you’re out in Litein, make sure you ear-tag at least one cow for our Micro Insurance program.
Me: Ummm yea, I may pass on that one, but I’ll think about it.
Microfinance… To most people this word is synonymous with providing small loans to very low-income entrepreneurs. But microfinance is so much more than that. It involves Microcredit, Microsavings, and our topic today, Micro Insurance. Most people are surprised to learn that many of Kiva’s Field Partners offer these different services to clients, and I admit that I did not really understand all of this before arriving in Nairobi.
Micro Insurance at Juhudi Kilimo is one of the most important services offered to clients, and because of recent competition, premiums keep getting lower. As of now, the cost to insure a dairy cow is 4% of the price of the cow, per year, and is mandatory for clients. Since there have been over 5,000 loans in recent years for dairy cows, this is big business for Juhudi Kilimo.
Juhudi works with C.I.C. Insurance in Kenya, the current market leader in Micro Insurance services. Loan officers here do the initial assessment after a client purchases a cow, and Juhudi submits the forms to C.I.C. along with the premium payment. In the event that a cow dies, a Juhudi loan officer will assist in the autopsy process with a licensed Agrovet owner and handle all the paperwork and payments with the insurance company.
Another interesting Micro Insurance service that Juhudi Kilimo provides is mandatory life insurance for the client. The premium is set at 1% of the loan amount, and covers the outstanding loan balance in the event a client passes away.
All of these services are designed to protect clients and their income-producing assets. In the event of an unexpected death, a client or their family is protected and they are not forced to shoulder a burden they are incapable of paying. This keeps the default rate low, and also provides a relief system where no cycle of debt is necessary to pay off outstanding loan balances when tragedy occurs.
The video above is my rather weak attempt at ear-tagging a Juhudi cow. It normally takes only 2-3 people to restrain and tag a cow, but this was no ordinary cow! We also had a problem where C.I.C. sent us new tags that do not seem as strong plastic, making the whole process much more strenuous than need be. Thankfully this issue has been addressed and new, better tags are being issued again for future tagging. Yea, I know, excuses excuses, but I’m sticking with that reasoning.
And in case anyone is wondering, I will NOT be attempting to ear-tag any more cows! My first, and last, attempt was sufficient for me, and I’ll leave it to the clients or loan officers from here on out to perform the task, as I’m quite happy being an interested observer. I would also like to point out that in almost all cases, the cow does not suffer during this process. It is quite similar to a human having an ear-piercing, where there will obviously be a bit of discomfort, but it is short-lived and not as painful as it may seem.
Kevin Chaissan is a member of the 10th class of Kiva Fellows, stationed in Kenya, working with Juhudi Kilimo. He is seeking to help move the new Field Partner from Pilot to Active stage in order to increase their funding on Kiva and maximize their impact on poor, rural farmers across Kenya looking to gain access to capital.
Entry filed under: Africa, blogsherpa, Juhudi Kilimo (JK), Kenya, KF10 (Kiva Fellows 10th Class). Tags: blogsherpa, CIC Kenya, cows, Juhudi Kilimo, Kevin Chaissan, Kiva, Kiva Fellows, Micro Insurance.
1. Cows and Microfinance: Simply Bovine « Kiva Stories from the Field | 26 April 2010 at 20:18
[...] Risk: For all the reasons above, cows are low risk. Microinsurance programs like the one Kiva Fellow Kevin Chaissan documented in Kenya can further mitigate the [...]
2. Kathy | 15 April 2010 at 06:26
Lovely story and funny video! My mother grew up on a dairy farm. Oh, the stories she and Grandma could tell. You’ve not only got the story, but the video as well. You made the farmers day, of that I’m certain.
3. Avani Parekh-Bhatt | 17 March 2010 at 04:05
Fellows work very closely with livestock owners/farmers to make sure that we are treating their animals with care – in fact, it’s one of the main reasons why MFIs like Juhudi are interested in microinsurance for livestock – people love their cows. Kevin’s humorous perspective his first experience tagging a cow is welcomed. Good job Kevin! I’m sure it wasn’t easy tagging the cow, but you hung in there like a trooper.
Avani
KF9, Kenya
4. Anna Piela | 17 March 2010 at 02:36
the cow was suffering from pain when an inept person tried to tag it – nothing funny.
5. Kevin | 17 March 2010 at 03:46
Hey ya know, when it comes to ear tagging cows, I really am inept! I was trying to learn about this process and got talked into one tagging attempt. But I have to say that in my few attempts seen in the video, the cow was not suffering because of my ineptitude. In the first try, the tag broke. In the second attempt, the tag fell out of the device before anything happened.
In the end it took a large group of farmers and Juhudi staff to get the cow to calm down and finally complete the ear tagging. It even took them more than one attempt because of the new tags from the insurance company, and that this cow, even before any tagging attempts took place, was really just a bit wild.
We all love cows out here in Kenya, and would never purposely harm them. Farmers treat their livestock with affection and a lot of care because they are such prized and income-producing assets. Ear tagging, while maybe not the best possible method for identifying cows, is necessary and will continue for tracking purposes unless a better method prevails.
6. Peter | 16 March 2010 at 22:35
I think your future in cattle ranching is limited. Good thing you’ve got microfinance!
7. evacwu | 16 March 2010 at 18:03
Haha love the video! Must’ve been scary to go heads up against that cow but now you have a great story to tell
Thanks for the insight on your MFI’s insurance program… always inspiring to hear about innovative service offerings from Kiva’s partner MFIs.
8. jayforkiva | 16 March 2010 at 13:02
Great post, Kevin. The video was fun to watch and I had no idea that micro-insurance was part of the services provided by Kiva’s Field Partners. I am interested in becoming a Kiva Fellow, too, and this post was inspirational.
9. Susan | 16 March 2010 at 09:57
enjoyed the video… now that’s entertainment!
10. Howard Zugman | 16 March 2010 at 09:55
Hi Kevin,
With all of the questionable practices of the Insurance Industry here in the US (Healthcare being a prime example) its heartening to see how in other circumastances that the same concept (insurance) can strengthen fledgeling entrepreners. Thanx for the info and good luck.
11. Kevin | 17 March 2010 at 04:41
Thank you for your response Howard. It really is interesting to learn about the different services offered and how clients are protected with these low-cost programs.