Post-Disaster Risk Financing Instruments as a Strategic Financing Option for Disaster Risk Reduction in the Kenyan National Disaster Platform

Abstract

Mobilization of financial resources for disaster risk reduction represent value for money because for every dollar invested in disaster risk reduction, between four and seven dollars are saved in the long run. The reactive emergency aid business model commonly applied is not helping much in disaster risk reduction because it suffers from irregular flow of funds making it unpredictable and complex in its arrangement for acquisition as well as eventual disbursement. Disaster risk financing instruments are increasingly at the centre of this nuxes since there exists an inseparable relationship between disaster risk financing instruments on one hand and disaster risk reduction activities on the other hand. Post-disaster risk financing instruments are budgetary reallocations, domestic credit, external credit, donor assistance and tax increase. Disasters pose daunting barriers to development in developing countries because they are inadequately prepared due to weaknesses of their economies, high level of indebtedness and rigid budgetary processes which do not allow them to reallocate budget post-disaster. This article analyzes the cause effect relationship between post-disaster risk financing instruments and risk reduction in the Kenya national platform. The primary data used in the analysis is based principally on a survey of 60 respondents interviewed in 2016 in the public and private organizations. Secondary data attained from archival records, UNDP and Development Initiatives documentation centres were used to cross-validate primary data. Correlational research design was adopted while statistical analysis employed was Pearson’s co-efficient of correlation and multiple regression analysis. The results show that there is a positive and significant relationship between post-disaster risk financing instruments and disaster risk reduction in Kenyan national disaster platform (r=0.286, p=0.000<0.01). The findings point to the need for the establishment of a disaster risk revolving fund in Kenya which is structured along the post-disaster risk financing sources.

 

Keywords: Post-disaster risk financing instruments, Strategic financing option, Risk reduction and Kenyan national disaster platform.