Herdsmen in drought-stricken northern Kenya can now profit from a new type of insurance which makes use of satellite images.

Microcredit specialist Equity Bank and UAP Insurance Ltd have joined forces to develop the insurance for herdsmen in the district of Marsabit, whose livestock often succumb to the effects of drought. If the area shows up brown instead of green on the satellite pictures, the herdsmen automatically receive payment.

The system is much cheaper and more efficient than the current system whereby the insurer has to travel to the area and investigate the livestock fatalities in person. Northern Kenya has suffered four major periods of drought in the past decade alone.