Kenya greenlights US$75M livestock project to revamp dairy $ cereal

KENYA – The Cabinet of Kenya has approved the US$75 million (KES 9.7 billion) Livestock Value Chain Support Project (LVSP), a significant initiative aimed at boosting dairy productivity, reducing post-harvest losses, and improving farmers’ incomes across Kenya.

Implemented by the Government of Kenya with support from the Polish Government through a tied-aid credit agreement, the programme will focus on strengthening genetics, enhancing feed and fodder production, expanding cold-chain infrastructure, and supporting farmer organisations.

The project targets both the dairy and cereals sub-sectors, with the broader aim of contributing to food and nutrition security, generating employment, and improving livelihoods for farming and agro-pastoral communities.

Ministry data indicates that the initiative has total funding of Sh9.7 billion and will run from 2024 to 2027. It comprises three main components: dairy and cereal post-harvest support services, agribusiness capacity building and technology dissemination, and project management and coordination.

The project will benefit numerous counties, including Baringo, Bomet, Bungoma, Elgeyo Marakwet, Embu, Garissa, Homa Bay, Isiolo, Kajiado, Kakamega, Kericho, Kiambu, Kilifi, Kirinyaga, Kisii, Kisumu, Kitui, Kwale, Laikipia, Lamu, Machakos, Makueni, Mandera, Marsabit, Meru, Migori, Murang’a, Nakuru, Nandi, Narok, Nyamira, Nyandarua, Nyeri, Samburu, Siaya, Taita Taveta, Tana River, Tharaka-Nithi, Trans-Nzoia, Turkana, Uasin Gishu, Vihiga, Wajir, and West Pokot.

Last month, Agriculture Cabinet Secretary Mutahi Kagwe and Livestock PS Jonathan Mueke hosted a delegation from the Kenya National Chamber of Commerce and Industry (KNCCI), led by Chamber President Erick Rutto, to deepen collaboration in boosting Kenya’s dairy and beef exports.

Shifting from volume to quality

Cabinet Secretary Kagwe said Kenya is shifting from volume to quality in dairy, targeting value-added exports such as butter, cheese, and milk powder.

“KNCCI is a key partner in linking Kenyan producers to global markets and investors,” he said.

He called for affordable agricultural financing under 10 per cent interest to make livestock and dairy enterprises viable, and announced the revival of the Agriculture Sector Working Group to align policy with private sector efforts.

The meeting also highlighted Kenya’s major beef export deal with China under Origin Prime Kenyan, a 25-year, Sh26 billion contract expected to create 135,000 jobs and modernise the Kenya Meat Commission with a Sh2 billion upgrade.

PS Mueke added, “Kenya produces 5.4 billion litres of milk annually and must now focus on exports as domestic consumption nears capacity.”

Both sides agreed on practical partnerships aimed at raising standards, attracting investment, and positioning Kenya as a regional powerhouse in dairy and beef exports.

In the 2025/26 financial year budget, the government allocated Sh47.6 billion to enhance food security and boost agricultural productivity in key value chains, including fisheries and aquaculture, horticulture, food crops, livestock, and rangeland development.

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