The Kenya Development Corporation (KDC) is courting private sector investment as it looks to unlock Ksh 11 billion in livestock value chain funding under the De-Risking, Inclusion and Value Enhancement (DRIVE) Project. The initiative, a collaboration with the World Bank launched in 2022, aims to cushion pastoralists in arid and semi-arid lands (ASALs) from the harsh impacts of drought while commercializing livestock farming.
According to KDC Chief Executive Officer Nora Ratemo, the project has already disbursed Ksh 519 million to enterprises and value chain actors across at least 20 ASAL counties. This is part of a Ksh 4.5 billion seed capital facility provided by the World Bank to catalyze investment in the livestock sector.
“The seed capital was designed to incentivize private sector participation. That’s why we’re also working closely with financial institutions to crowd in private capital,” Ratemo noted.
The DRIVE Project, initiated in the aftermath of the 2019 drought that wiped out approximately 2.5 million livestock, focuses on building resilience, unlocking economic potential, and strengthening the entire livestock value chain. Funding supports a wide range of areas including fodder production, feedlots, meat processing, leather production, aggregation, and livestock trade.
So far, KDC has received applications from over 100 farmers and supported 20 enterprises. It can fund investments of up to Ksh 1 billion, with current applications ranging between Ksh 400 million and Ksh 500 million. The minimum loan size is Ksh 3 million, with a 9% annual interest rate on a reducing balance, and a preferential rate of 7.5% for women-led enterprises.
Beyond financing, the project has also expanded livestock insurance coverage. DRIVE Project Coordinator Maurice Ouma revealed that 257,000 policyholders are currently enrolled well above the original 150,000 target impacting over 1,500 households.
“Incorporating insurance into regular livestock management is key. We want it to be as common as buying veterinary drugs,” Ouma said.
Looking ahead, KDC aims to enhance market access, improve meat quality, invest in animal genetics, and expand support for livestock feed production in the next financial year.
