International Journal of Academic Research in Business and Social Sciences 2017, Vol. 7, No. 3 ISSN: 2222-6990 99 www.hrmars.com Moderating Effect of Index Based Livestock Insurance on Socio-Cultural Factors Affecting Performance of Livestock Projects in North Eastern Kenya Mohamed Keinan Hassan PhD. Candidate Jomo Kenyatta University of Agriculture and Technology, School of Entrepreneurship, Procurement and Management, Nairobi, Kenya Jane Gathenya Senior Lecturer Jomo Kenyatta University of Agriculture and Technology, School of Entrepreneurship, Procurement and Management, Nairobi, Kenya Mike Iravo Senior Lecturer Jomo Kenyatta University of Agriculture and Technology, School of Entrepreneurship, Procurement and Management, Nairobi, Kenya DOI: 10.6007/IJARBSS/v7-i3/2697 URL: http://dx.doi.org/10.6007/IJARBSS/v7-i3/2697 ABSTRACT Livestock keeping represent vast majority of household wealth and accounts for more than two-thirds of average family income in arid and semi-arid lands of Kenya. In the last decade, four severed droughts occurred in Northern Kenya resulting to major livestock mortality. Following to this, several projects were embarked to manage risk such as provision of micro- insurance for low income people but not much has been achieved. Therefore, the purpose of this study was to investigate the moderating effect of index based livestock insurance on socio- cultural factors affecting performance of livestock projects in North Eastern Kenya. The study used cross sectional design and targeted population from households in Garissa and Wajir. Structured questionnaire was administered to the sampled population which was randomly selected using multi-stage random sampling technique. Quantitative data collected was analyzed by statistical models such as Analysis of variance (ANOVA), Multivariate regression analysis was applied to measure moderating effect of index based livestock insurance on socio- cultural factors. The study found out that there was a weak positive linear relationship between socio-cultural factors and performance of livestock projects in North Eastern Kenya using Pearson correlation coefficient. However, introduction of moderating variable into independent variable (socio-cultural factors) there was insignificant relationship with performance of