Ripple's Blockchain Pilot Provides Drought Insurance to 517 Kenyan Pastoralists

Ripple, a prominent blockchain company, has successfully concluded an experimental program aimed at providing drought insurance to pastoralists in Kenya’s Laikipia County. This initiative, known as Ripple Impact, was carried out in collaboration with Mercy Corps Ventures and the donor platform DIVA Donate. The pilot program, which began in April 2025, utilized RLUSD, a stablecoin developed by Ripple that is compatible with both Ethereum and XRPL. The project targeted 517 pastoralists, with a significant 70% of them being women, in the northern part of Laikipia, an area frequently affected by intermittent rainfall and stressed vegetation levels.

The insurance mechanism relied on satellite-monitored Normalized Difference Vegetation Index (NDVI) measurements to assess vegetation health. Automated payouts of RLUSD were triggered using smart contracts when NDVI values fell below critical levels. Specifically, if the NDVI value dropped below 0.55, full payouts were activated. For NDVI values between 0.55 and 0.61, a linear scale determined the payout amount. If the NDVI read 0.57, partial payouts were distributed, and no payouts were made if the value was above 0.61. During the pilot period, the NDVI values indicated favorable vegetation health, resulting in no disbursements. However, the unused RLUSD tokens were saved for future drought periods, particularly during high-risk months.

Despite the absence of payouts, the pilot was deemed successful in establishing a scalable and automated climate relief system. Ripple reported that the funds would be carried over into the second half of the year, the next high drought risk period, ensuring continuous funding without the need to raise additional capital. The support from Ripple also enabled the project to increase its funding goal to 40,000, aiming to cover 533 pastoralists with $75 each. This amount is estimated to feed one livestock animal for a six-month period.

The successful completion of the Ripple Impact pilot program underscores the potential of blockchain technology and stablecoins in addressing real-world challenges. By providing insurance to pastoralists against drought, Ripple has demonstrated how financial innovation can support agricultural communities and enhance their resilience to climate-related risks. The program's emphasis on gender inclusivity, with a majority of beneficiaries being women, further highlights Ripple's commitment to promoting social equity and empowerment. The rollout of unused RLUSD from the pilot program indicates Ripple's intention to continue exploring and expanding the use of stablecoins for social impact initiatives. This move not only supports the financial well-being of the insured pastoralists but also opens the door for future collaborations and innovations in the field of blockchain-based insurance. As Ripple continues to develop and implement such programs, it is well-positioned to make a significant impact on global efforts to address climate change and support vulnerable communities.