Kenya is strengthening its livestock economy through the De-risking, Inclusion and Value Enhancement (DRIVE) Project, a national initiative designed to unlock financing, expand market access, and attract private investment across livestock value chains.
The project targets pastoral production systems by improving access to finance, strengthening market linkages, upgrading quality infrastructure, and supporting commercially viable livestock enterprises.
Kenya’s livestock sector remains a cornerstone of the economy, supporting millions of pastoral and agropastoral households. The sector contributes approximately 12 per cent of national GDP and 40–42 per cent of agricultural GDP, underscoring its strategic importance.
According to the 2025 Economic Survey, livestock earnings rose to KES 235 billion in 2024, reflecting broad-based growth in meat and dairy production driven by strong sales of cattle, sheep, goats, and camels. Despite this contribution, the sector continues to face constraints such as fragmented markets, limited aggregation, and gaps in quality and export infrastructure.
The DRIVE Breakfast Meeting, hosted by the Kenya Development Corporation (KDC) at Uchumi House, focused on practical strategies to expand livestock and livestock product markets while accelerating sector growth. Discussions centred on strengthening structured market pathways, enhancing aggregation and cold-chain systems, and aligning drought resilience with commercial market development to support sustainable investment.
The Government reiterated its commitment to strengthening the policy and regulations required to support livestock export growth. Ms. Phyllis Kandie, Advisor on Market Linkages for Trade, highlighted the role of coordinated trade facilitation in unlocking markets.
“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 Ms. Kandie.
Speaking at the meeting, KDC Director General Ms. Norah Ratemo emphasized the importance of coordinated action across finance, policy, and market systems.
“Over the last three years, disbursements have grown from KES 185 million to KES 852 million, signalling
confidence in the livestock value chain across 15 ASAL counties. Beyond financing, we are innovating. KDC has rolled out KDC Mifugo Cash, a digital livestock input credit product in partnership with Safaricom and other partners. This pilot targets 5,000 pastoralists, offering unsecured credit for essential inputs via a closed-loop M-PESA ecosystem, addressing liquidity gaps and strengthening resilience in pastoral communities,” said Ms. Ratemo.
Development partners emphasized the importance of integrating resilience with markets. Mr. James Sinah, Kenya DRIVE Task Team Leader at the World Bank, noted that the DRIVE Project is transforming resilience into market opportunity for pastoralists in the Horn of Africa. “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 Mr. Sinah.
Risk management remains central to the sustainability of livestock systems. Ms. Hope Murera, Chief Executive Officer and Managing Director of ZEP-RE, emphasized the role of insurance and risk solutions.
“Insurance is the foundation of resilience in livestock systems. Through DRIVE, we are protecting herds, stabilizing incomes, and enabling pastoralists and valuechain 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,” said Ms. Murera.
The Managing Director AFC, Mr. George Kubai, highlighted the impact of DRIVE financing on livelihoods and job creation.
“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 Mr. Kubai.
The meeting highlighted the importance of scaling up investments, deepening collaboration with cooperatives through equity participation, and strengthening export-ready value chains.
Stakeholders called for closer engagement with organized producer groups to unlock capital, improve governance, and enable shared ownership across the livestock ecosystem. Emphasis was also placed on streamlining livestock value chains, developing cold-chain facilities, and addressing persistent challenges, including animal health and disease management, droughtrelated risks, quality compliance, and market inefficiencies. Through coordinated public–private action, Kenya’s livestock sector can be positioned as competitive, resilient, and investment-ready, delivering sustainable growth in regional and international markets.
