Kenya launches US$39M livestock investment to accelerate commercial production

KENYA – The Kenyan president has announced a Sh5 billion (US$39 million) County Livestock Investment Company initiative that will enable more than 350,000 pastoralists across 21 Arid and Semi-Arid Lands (ASAL) counties to establish and own livestock investment companies, in a move aimed at commercialising Kenya’s livestock sector and expanding value addition.

Speaking during the 63rd Madaraka Day celebrations in Wajir County, Ruto said the programme will enable pastoral communities to become shareholders in enterprises engaged in livestock processing, marketing, and trade, rather than relying solely on traditional livestock production.

“Just as tea farmers own their factories through KTDA and dairy farmers own their cooperatives, pastoralists too must own and control the businesses built around their livestock,” he said.

The President said the county-based investment companies will provide access to markets, financing, insurance services, and value-addition opportunities, helping to transform livestock into a modern commercial enterprise. 

The first phase is expected to benefit more than two million household members across pastoral regions.

To accelerate implementation, Ruto directed the Ministry of Agriculture and Livestock Development, in collaboration with county governments, to begin the immediate registration of livestock investment companies in all 21 ASAL counties.

The initiative forms part of a broader livestock transformation agenda that includes operationalising the Livestock Enterprise Development Fund and establishing a national strategic food and fodder reserve.

While also strengthening pastoral cooperatives, rolling out a nationwide animal identification and traceability system, and expanding infrastructure to support access to premium export markets.

“We must move beyond live animal exports to higher-value products such as meat, leather and dairy products,” Ruto said.

The announcement comes as Kenya continues to invest heavily in the livestock sector, particularly in northern Kenya, where livestock contributes about 12% of the country’s Gross Domestic Product and 42% of agricultural GDP in ASAL counties. 

The sector accounts for more than 90% of employment and over 95% of household incomes in pastoral areas.

The government has recently implemented several interventions to strengthen the industry, including distributing more than 52,000 sheep, goats, and cattle to over 10,000 households across 16 ASAL counties under a livestock restocking programme. 

More than 10 million animals have also been vaccinated, while local vaccine production capacity has expanded to over 123 million doses.

Additional investments have included the restoration of more than 300,000 hectares of degraded rangelands, the development of feedlots and hay storage facilities, and improvements to livestock breeding and marketing systems.

To further support productivity, the government will deploy 2,000 additional agripreneurs to ASAL counties to provide advisory services, facilitate market linkages and promote climate-smart pastoralism. 

The recruits will join 5,000 agripreneurs already operating across the country.

According to the President, the interventions are beginning to deliver measurable results. 

Kenya’s meat exports increased by 84% from Sh8.9 billion (US$68.75 million) in 2022 to Sh16.4 billion (US$126.69 million) in 2025, while milk production rose from 4.6 billion litres to 5.3 billion litres over the same period.

Dairy exports nearly tripled from Sh4.9 billion (US$37.85 million) to Sh14.2 billion (US$109.69 million).

Ruto said the government intends to position northern Kenya as a regional livestock trade hub serving markets across Africa and the Middle East.

“Northern Kenya is not peripheral to Kenya’s future. It is central to it. We see northern Kenya becoming the gateway of Africa’s livestock trade to the Middle East and the world,” he said.

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