Kenya Commits £434,000 to Transform Livestock Farming in Drought-Hit Northern Counties
Turkana West, 26 February 2026
Government backing reaches pastoral communities where over 80% depend on livestock for survival, with women and youth comprising 54% of initial beneficiaries.
Strategic Investment Through Cooperative Banking
The Kenya Development Corporation’s Sh70 million wholesale financing facility, presented to Eco Pillar Sacco on 25 February 2026, represents a targeted approach to addressing the financial challenges facing pastoral communities in Kenya’s arid and semi-arid lands [1][7]. This investment forms part of the broader De-Risking, Inclusion and Value Enhancement (DRIVE) programme, designed specifically to strengthen livestock value chains and expand access to sustainable finance in regions where traditional banking services remain limited [7]. The facility operates through a wholesale model, where KDC provides bulk funding to community-based financial institutions like Eco Pillar Sacco, which then lends directly to farmers, traders, women’s groups, youth enterprises, and pastoral households [7].
Immediate Impact and Demographic Reach
The programme’s initial success demonstrates significant reach within vulnerable communities, with 170 beneficiaries already accessing the first tranche of Sh35 million [1][7]. Notably, women and youth comprise 54% of these initial beneficiaries, highlighting the programme’s effectiveness in targeting demographics typically excluded from formal financial services [1][7]. The funding supports critical activities across the livestock value chain, including feed, fodder, animal health services, transport, and value addition activities such as milk, meat, hides, and leather processing [7]. CEO Linus Lokira of Eco Pillar Sacco confirmed that members are increasingly applying for specialised loan products including Kilimo Loan, Ufugaji Loan, and Kilimo Biashara facilities, with the second tranche expected to benefit additional members from both West Pokot and Turkana counties [1].
Economic Context and Regional Significance
West Pokot County’s economy, valued at approximately Sh50 billion, depends heavily on livestock keeping and farming, with over 80% of the population relying on these activities for their livelihoods [1]. This dependency underscores the critical importance of the KDC investment, particularly given the region’s vulnerability to climate-related shocks that regularly devastate pastoral economies [GPT]. The programme aligns with the government’s Bottom-Up Economic Transformation Agenda, which prioritises targeted investments in ASALs to build economic resilience in marginalised communities [1]. Through the County Cooperative Development Fund, an additional Sh65 million has already been disbursed to 14 cooperatives, demonstrating sustained government commitment to strengthening cooperative banking infrastructure in the region [1].
Broader Agricultural Policy Framework
The livestock investment occurs within a broader context of agricultural sector reform, as Cabinet Secretary Mutahi Kagwe pushed Parliament on 25 February 2026 to increase the Ministry of Agriculture and Livestock Development’s allocation to at least 5% of the national budget [2]. Currently, the Ministry has been allocated Ksh75.49 billion under the 2026 Budget Policy Statement, representing only 2.696% of the Ksh2.8 trillion national budget [2]. This allocation includes Ksh29.74 billion for recurrent expenditure and Ksh45.74 billion for development [2]. The Ministry’s value-chain approach under BETA focuses on food security, import reduction, and export growth, with livestock products including beef, dairy, mutton, chevon, and pork identified as priority commodities under the food security pillar [2]. Major challenges undermining productivity include climate change, droughts, floods, pest invasions, currency volatility, delayed funding, high input costs, and weak extension services [2].