Kenya launches climate-smart dairy value chain transformation project in Nandi County

KENYA – The Kenya National Chamber of Commerce and Industry (KNCCI), in partnership with the Africa Guarantee Fund (AGF) and Space AI, has announced the official launch of the Climate-Smart Dairy Value Chain Transformation Project at the Tilalwa Multi-Purpose Farmers’ Cooperative Society in Nandi County.

Despite its economic importance, the sector continues to face hurdles, including high aggregation costs, limited access to finance, and low adoption of climate-resilient technologies.

Supported by an AGF Capacity Development Grant, the project aims to catalyze up to (US$4.6 million) KES 600 million in financing toward climate-smart interventions.

The program is designed to enhance farmer resilience and productivity through several key pillars. E‑mobility solutions are being implemented to establish sustainable logistics for milk aggregation.

Financial inclusion is addressed through the introduction of “Mkulima Loans” and credit‑readiness support for cooperatives. Essential services are strengthened by the establishment of Malisho Service Centers for inputs and animal health interventions, including East Coast Fever (ECF) vaccinations.

On the social front, initiatives such as “Maziwa ni School Fees” and “Maziwa ni Afya (Lipa SHA)” link milk income directly to education and healthcare financing.

Dr. Erick Rutto, President of KNCCI, expressed immense optimism regarding the project’s potential to revitalize local communities, “This project is not just about dairy production; it is about the economic empowerment of the Kenyan farmer,” said Dr. Erick Rutto.

“By integrating climate-smart technologies with accessible financing, we are ensuring that our local communities in Nandi, Uasin Gishu, and beyond can thrive even in the face of environmental challenges. We expect this to create a ripple effect of sustainable income and increased resilience for over 1,500 farmers participating in this initial phase.”

The launch convened a diverse group of stakeholders, including leadership from KNCCI and AGF, county government officials, financial institutions, and leaders from 45 dairy cooperatives across 11 pilot counties.

As the project’s technology partner, Space AI has digitised participating cooperatives and implemented farmer profiling, milk data capture, and automated check-off systems.

This digital infrastructure strengthens transparency, enhances credit readiness, and enables seamless integration of financing, input services, and social programs across the dairy value chain.

Patrick Lumumba, Group Capacity Development Director – AGF, emphasized the importance of employment creation within the initiative.

“Employment creation, especially among the youth is at the core of what the African Guarantee Fund – AGF advocates for in its blended financing offering. To achieve this in the dairy sector by working through our partner financial institutions and KNCCI through the support received from EU/AfDB agribusiness programme implies a sustainable empowerment for dairy farmers and enterprises in the value chain,” said Patrick Lumumba.

The event also served as a platform to showcase practical interventions and align the project with national dairy-sector development priorities.

By strengthening public-private collaboration, KNCCI aims to ensure the long-term sustainability of the county-level value chain.

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