From left: ZEP-RE Managing Director Hope Murera, Kenya Development Corporation Director General Norah Ratemo and Trade Market Linkages Advisor Phyllis Kandie during a press conference in Nairobi. [David Gichuru, Standard]
Kenya has disbursed Sh852 million in livestock financing across 15 counties over three years through a government-backed initiative that seeks to attract private capital into pastoral economies.
The De-risking, Inclusion and Value Enhancement (DRIVE) Project increased disbursements from Sh185 million initially, marking a surge in investment confidence across Arid and Semi-Arid Lands (ASAL) counties, officials announced at a stakeholder meeting hosted by Kenya Development Corporation (KDC) in Nairobi.
Livestock contributes approximately 12 per cent of the national gross domestic product (GDP) and over 40 per cent of the agricultural GDP.
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Earnings from the sector rose to Sh235 billion in 2024, driven by increased sales of cattle, sheep, goats and camels, the 2025 Economic Survey shows.
Fragmented markets, weak aggregation systems and gaps in export infrastructure continue to constrain growth.
“Expanding livestock markets requires deliberate coordination across production, trade and quality systems. Government is committed to strengthening structured market access, improving aggregation and aligning trade facilitation frameworks to enable Kenyan livestock and livestock products to compete effectively in regional and international markets,” said Phyllis Kandie, adviser on market linkages for trade.
KDC has rolled out a digital credit product targeting 5,000 pastoralists through a partnership with Safaricom.
The product, called KDC Mifugo Cash, provides unsecured credit for livestock inputs via M-PESA to address liquidity constraints.
“Over the last three years, disbursements have grown from Sh185 million to Sh852 million, signalling confidence in the livestock value chain across 15 ASAL counties.
Over the last three years, disbursements have grown from Sh185 million to Sh852 million, signalling confidence in the livestock value chain across 15 ASAL counties.
KDC has rolled out KDC Mifugo Cash, a digital livestock input credit product in partnership with Safaricom and other partners,” said Norah Ratemo, director general of KDC
The DRIVE Project provides insurance to over 138,000 households covering more than 500,000 livestock and benefiting over 800,000 people across Kenya’s arid regions.
The initiative expanded coverage to 21 counties in 2024.
The World Bank supports the project, which integrates drought resilience measures with commercial market development.
“DRIVE demonstrates how resilience, finance and markets can be integrated to unlock inclusive growth. By de-risking pastoral production and connecting households to finance and markets, the project is enabling pastoral communities to transition into sustainable economic opportunity,” said James Sinah, Kenya DRIVE task team leader at the World Bank.
Insurance companies play a role in protecting pastoral incomes from climate shocks.
“Insurance is the foundation of resilience in livestock systems. Through DRIVE, we are protecting herds, stabilising incomes and enabling pastoralists and value-chain actors to invest with confidence. These risk solutions are critical to sustaining production, strengthening markets and safeguarding national livestock assets in the face of climate shocks,” noted Hope Murera, chief executive officer and managing director of ZEP-RE.
Agricultural Finance Corporation (AFC) deployed funding to over 130 clients through its partnership with KDC.
“The uptake of DRIVE financing has demonstrated strong demand across the livestock sector. Through our partnership with KDC, we were able to deploy funding efficiently, reach over 130 clients and support job creation.
The demand for livestock financing continues to grow, underscoring the need to scale investment into this critical sector,” said George Kubai, managing director of AFC.
Stakeholders called for increased investment in cooperatives through equity participation, development of cold-chain facilities and improvements in animal health systems to position Kenya’s livestock sector for regional and international markets.
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From left: ZEP-RE Managing Director Hope Murera, Kenya Development Corporation Director General Norah Ratemo and Trade Market Linkages Advisor Phyllis Kandie during a press conference in Nairobi. [David Gichuru, Standard]
Kenya has disbursed Sh852 million in livestock financing across 15 counties over three years through a government-backed initiative that seeks to attract private capital into pastoral economies.
The De-risking, Inclusion and Value Enhancement (DRIVE) Project increased disbursements from Sh185 million initially, marking a surge in investment confidence across Arid and Semi-Arid Lands (ASAL) counties, officials announced at a stakeholder meeting hosted by Kenya Development Corporation (KDC) in Nairobi.
Livestock contributes approximately 12 per cent of the national gross domestic product (GDP) and over 40 per cent of the agricultural GDP.
Follow The Standard
channel
on WhatsApp
Earnings from the sector rose to Sh235 billion in 2024, driven by increased sales of cattle, sheep, goats and camels, the 2025 Economic Survey shows.
Fragmented markets, weak aggregation systems and gaps in export infrastructure continue to constrain growth.
“Expanding livestock markets requires deliberate coordination across production, trade and quality systems. Government is committed to strengthening structured market access, improving aggregation and aligning trade facilitation frameworks to enable Kenyan livestock and livestock products to compete effectively in regional and international markets,” said Phyllis Kandie, adviser on market linkages for trade.
KDC has rolled out a digital credit product targeting 5,000 pastoralists through a partnership with Safaricom.
The product, called KDC Mifugo Cash, provides unsecured credit for livestock inputs via M-PESA to address liquidity constraints.
“Over the last three years, disbursements have grown from Sh185 million to Sh852 million, signalling confidence in the livestock value chain across 15 ASAL counties.
Over the last three years, disbursements have grown from Sh185 million to Sh852 million, signalling confidence in the livestock value chain across 15 ASAL counties.
KDC has rolled out KDC Mifugo Cash, a digital livestock input credit product in partnership with Safaricom and other partners,” said Norah Ratemo, director general of KDC
The DRIVE Project provides insurance to over 138,000 households covering more than 500,000 livestock and benefiting over 800,000 people across Kenya’s arid regions.
The initiative expanded coverage to 21 counties in 2024.
The World Bank supports the project, which integrates drought resilience measures with commercial market development.
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“DRIVE demonstrates how resilience, finance and markets can be integrated to unlock inclusive growth. By de-risking pastoral production and connecting households to finance and markets, the project is enabling pastoral communities to transition into sustainable economic opportunity,” said James Sinah, Kenya DRIVE task team leader at the World Bank.
Insurance companies play a role in protecting pastoral incomes from climate shocks.
“Insurance is the foundation of resilience in livestock systems. Through DRIVE, we are protecting herds, stabilising incomes and enabling pastoralists and value-chain actors to invest with confidence.
These risk solutions are critical to sustaining production, strengthening markets and safeguarding national livestock assets in the face of climate shocks,” noted Hope Murera, chief executive officer and managing director of ZEP-RE.
Agricultural Finance Corporation (AFC) deployed funding to over 130 clients through its partnership with KDC.
“The uptake of DRIVE financing has demonstrated strong demand across the livestock sector. Through our partnership with KDC, we were able to deploy funding efficiently, reach over 130 clients and support job creation.
The demand for livestock financing continues to grow, underscoring the need to scale investment into this critical sector,” said George Kubai, managing director of AFC.
Stakeholders called for increased investment in cooperatives through equity participation, development of cold-chain facilities and improvements in animal health systems to position Kenya’s livestock sector for regional and international markets.
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By David Njaaga