Ripple has successfully concluded its RLUSD-powered drought insurance pilot in Kenya, providing coverage to 517 pastoralists, 70% of whom are women, without the need for any payout as vegetation stayed healthy.

Image Source: Ripple

Blockchain Meets Climate Risk

The pilot was launched in April 2025 in collaboration between Ripple Impact, Mercy Corps Ventures, and DIVA Donate, targeting the drought-prone northern Laikipia region. This area, historically battered by erratic rainfall and vegetation stress, is home to communities whose livelihoods depend on livestock and the availability of forage.

The heart of the program was Ripple’s new stablecoin, $RLUSD, an Ethereum and XRPL-compatible digital asset. The insurance model harnessed satellite-derived Normalized Difference Vegetation Index (NDVI) data, an indicator of plant cover and health, to objectively monitor the health of local vegetation. If NDVI readings dropped below 0.55 by the end of May, a full RLUSD payout would be automatically triggered for each participant. Partial payouts were calculated on a linear scale for NDVI values between 0.55 and 0.61, while readings above 0.61 meant no payout was necessary.

How the System Worked

1. Enrollment: 517 pastoralists, 70% women, joined the pilot.

2. Monitoring: Satellite NDVI data tracked vegetation health.

3. Automation: Smart contracts ensured instant, transparent payouts if drought thresholds were met.

4. Result: NDVI readings stayed above 0.61, indicating healthy vegetation; no payouts were needed.

A Season of Relief

While Laikipia has faced severe droughts in recent years, causing devastating livestock losses and food insecurity, this pilot season saw favorable conditions. Satellite imagery confirmed robust vegetation, sparing communities from the hardship of feed shortages and negating the need for insurance payouts.

The RLUSD funds earmarked for this cycle will not go unused. Instead, they’re secured for the next high-risk period (October–December 2025), ensuring continued protection for the same group of pastoralists without the need for additional fundraising. Ripple’s support also enabled the project to raise its target to $40,000, aiming to insure 533 pastoralists with $75 each in future seasons, a sum sufficient to sustain a single livestock animal for up to six months.

Broader Impact

The success of this blockchain-backed insurance model is already sparking interest beyond Kenya, with advocates highlighting its potential for broader adoption across Africa’s climate-vulnerable regions. Notably, the pilot prioritized gender inclusion, with women making up the majority of beneficiaries. This focus is crucial in rural Kenya, where women often shoulder the burden of food security and household resilience.

Looking Ahead

As climate risks intensify, the Kenyan pilot underscores how blockchain and digital assets like RLUSD can deliver transparent, efficient, and equitable insurance solutions to communities on the frontlines of environmental change. With the unused RLUSD funds rolled over, 517 pastoralists remain protected. Ripple’s initiative stands as a beacon for how technology and humanitarian aid can intersect to provide real-world security and peace of mind for those most at risk.