Kenya moves to expand livestock market under DRIVE Project

KENYA – Kenya is intensifying efforts to expand its livestock and livestock product markets through the De-risking, Inclusion and Value Enhancement (DRIVE) Project, a government-led programme designed to strengthen access to financing, market opportunities, and private sector investment.

Launched in April 2023 by the Department of Livestock Development in partnership with the World Bank Group, ZEP-RE, PTA Reinsurance Company, and the Kenya Development Corporation (KDC), the project works to transform pastoralist livelihoods by de‑risking livestock production, expanding access to finance, and building structured market.

The government has emphasized the importance of improving policies and regulations to support livestock imports. During the meeting at KDC office in Nairobi, Phyllis Kandie, Advisor on Market Linkages for Trade, noted that better coordination across production, trade, and quality systems is essential for opening new markets.

A key priority of the DRIVE project is turning climate resilience into economic opportunity. KDC Director Norah Ratemio reported that disbursements have grown significantly, rising from 15 million to 858 million over the past three years across 15 arid and semi-arid regions.

She also highlighted the launch of KDC Mifugo Cash, a digital credit product developed with Safaricom. The pilot programme targets 5,000 pastoralists, offering unsecured loans for livestock inputs through M-PESA.

Livestock market outlook

Kenya’s livestock sector remains a cornerstone of the economy, particularly in pastoral and agropastoral regions. It contributes about 12% of national GDP and more than 40% of agricultural GDP. In 2024, livestock earnings rose to KSH 235 billion, driven largely by meat and dairy sales.

Despite this growth, the sector continues to face challenges, including limited export facilities, weak market linkages, and climate-related risks. These issues were discussed during the DRIVE meeting, where stakeholders explored solutions such as strengthening cold storage systems, expanding insurance coverage for farmers, and connecting households to finance and markets.

Building resilience through livestock

In parallel, the Ministry of Agriculture and Livestock Development has unveiled the National Livestock Agenda (2025–2035), a decade-long research and innovation roadmap. The agenda prioritizes animal genetics, disease control, feed systems, value addition, and diversification into poultry, aquaculture, and apiculture (beekeeping).

Its goal is to position livestock as a driver of food security, exports, and industrial growth, particularly as Kenya’s population is projected to double by 2050.

The agenda now serves as the national framework for livestock research, aligning with Vision 2030, the Sustainable Development Goals (SDGs), and the African Union Agenda 2063.

With climate risks intensifying and demand for livestock products rising, Kenya’s approach signals a bold commitment to transform the sector from vulnerable subsistence into a resilient, export-ready industry.

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