The Kenya Development Corporation (KDC) is eying higher participation of private sector to meet financing demand to the tune of Ksh 11 billion for livestock sector value chain actors operating in counties classified as arid and semi-arid.
This follows increased applications for funding the corporation has received under the De-Risking, Inclusion and Value Enhancement (DRIVE) Project in collaboration with the World Bank launched in 2022 with the aim of cushioning pastoralists in arid regions against adverse losses during dry seasons.
According to KDC Chief Executive Officer Nora Ratemo, the project has so far disbursed a total Ksh 519 million to enterprises and value chain actors in at least 20 counties classified as ASAL through the seed capital totaling Ksh 4.5 billion provided by the World Bank.
“The seed capital that was given to us by World Bank was to supposed to come and incentivize the private sector to come and investment and that is why we are also working with financial institutions to see if we can crowd in the private sector capital,” said Ratemo.
The project which was rolled out more than two and a half years ago following the 2019 drought which claimed at least 2.5 million livestock in Kenya is meant to unlock capital, build resilience and unlock economic potential of ASAL counties.
In the livestock sector value chain, the funding is utilized to support fodder production and feedlots, meat processing, leather, aggregation, and livestock trade. DRIVE project also supports climate-smart, community driven development across the entire livestock value chain.
“So far we have received applications from over 100 farmers. We have also benefited about 20 enterprises out of that all pipeline. We can do investment of up to Ksh 1 billion and we have applications of between Ksh 400-500 million which we are considering. The minimum ticket size is Ksh 3 million with interest set at 9pc per annum on a reducing balance. For women enterprises the interest is 7.5pc p.a,” she added.
Through the project, livestock keepers in the ASAL counties have also had access to livestock insurance where they are able to access hay and animal feeds during dry seasons.
DRIVE Project Coordinator Maurice Ouma said so far the project has 257,000 insurance policyholders out of the targeted 150,000 reaching more than 1,500 households.
“We want that livestock insurance aspect to be the way a farmer goes to buy vet drugs and input into their production system. We are pushing the commercialization agenda so that pastoralism and livestock production in general is commercialized and livestock insurance becomes part of routine bit,” said Ouma.
In the next financial year, KDC is seeking to explore root to market, increase quality of meat, invest in innovation such as animal genetics and increase support in livestock feeds production.
