Ripple has concluded its experimental drought insurance program in Kenya, benefiting 517 pastoralists. The project utilized the RLUSD stablecoin for automated payouts.
Project Overview
The drought insurance pilot by Ripple was announced in April 2025 and was conducted in partnership with Mercy Corps Ventures and the DIVA Donate platform. The project involved 517 pastoralists, with 70% being women from northern Laikipia, an area often affected by intermittent rainfall.
Technology Utilization for Monitoring
The insurance process utilized satellite data based on the Normalized Difference Vegetation Index (NDVI) to assess vegetation health. Automated RLUSD payouts were activated using smart contracts when NDVI values fell below critical levels. Full payouts were issued if NDVI was below 0.55, while partial payouts were determined for values between 0.55 and 0.61.
Results and Future of the Project
During the pilot period, NDVI values showed favorable outcomes for vegetation health in Laikipia, hence no payouts were triggered. However, RLUSD tokens are retained for future use, particularly during high-risk months. The pilot was deemed successful in establishing a scalable automated climate relief system.
Ripple's drought insurance initiative has showcased the potential of blockchain technologies to provide financial protection to pastoralists amid climate change challenges. Despite the absence of payouts in this pilot phase, the system has proven its efficiency and readiness for future challenges.
