The Kenyan Government to Launch $140M Project Safeguarding Pastoralists from Drought and Boosting Economic Inclusion
The Government, through the State Department for Livestock Development (SDLD), in partnership with ZEP-RE (PTA Reinsurance Company), Kenya Development Corporation (KDC), and the World Bank Group (WBG), are set to formally launch the De-Risking, Inclusion, and Value Enhancement of pastoral economies (DRIVE) project.
The launch of the DRIVE will be officiated by His Excellency, The Deputy President of the Republic of Kenya, Rigathi Gachagua, on July 13th, 2023, at Naibor, Laikipia County.
The DRIVE project aims to de-risk pastoral systems at the primary level through an integrated package of financial services, including drought index insurance, savings, digital accounts and financial education, and at the value chain level through de-risking private sector investments that provide reliable markets to pastoralists.
The DRIVE project is a critical step towards the sustainable development of pastoralist communities in Kenya. The provision of the necessary support and resources is going to help the project increase pastoral resilience by enhancing their economic participation while promoting a more sustainable and inclusive economic development model in the country.
The endorsement by elected leaders from the 21 ASAL counties signifies a crucial step towards ensuring the success and wide-scale implementation of the project, the Principal Secretary State Department of Livestock Development Hon. Jonathan Mueke said.
“The project is expected to have positive impact on enhancing the climate resilience of pastoral communities, addressing climate change, strengthening commercialization of livestock production, and ensuring the inclusion of the marginalized and vulnerable groups such as women and youth,” Hon. Mueke said.
As part of the Horn of Africa Initiative, the DRIVE project will build the resilience of pastoral communities in Kenya, Ethiopia, Somalia and Djibouti. About 250,000 households are expected to benefit from the project representing 1.6 million pastoralists and their dependents across the four countries over a five-year period.
In Kenya, over 150,000 pastoralists are expected to benefit from the project across the Arid and Semi-Arid Lands (ASALs). The project is also expected to create markets around the livestock value chain, enhance regional cooperation and peacebuilding, climate mitigation (improvement, fodder conservation, and increased productivity), and close the gender gap in access to financial services.
In today’s breakfast meeting, the announcement of the launch of the DRIVE project is a big step towards achieving sustainable and inclusive development. It is a clear confidence that the project will drive positive change, creating new opportunities, empowering communities, and fostering resilient, thriving economies of the ASAL regions.
“We are excited about this project and confident of its potential to address vulnerability to climate shocks amongst pastoralists. It will empower pastoralists to introduce better livestock management and commercial practices. Subsequently, enabling local farmers to take advantage of Kenya’s vibrant livestock export opportunities,” KDC Director General Norah Ratemo said.
In Kenya, the project has two components. Component 1 involves, de-risking pastoral production through a package of financial services. The objective of this component is to protect pastoralists against recurring drought shocks with a package of financial services, including drought index insurance, savings for resilience, digital accounts and financial education and awareness creation. ZEP-RE (PTA Reinsurance Company), the regional implementing agent, is delivering through collaboration with the government, development partners and private sector companies. The regional management of this component helps mobilize the private sector and create the scale necessary to transfer the risk of drought to the international insurance market.
Component 2, with a budget of USD 65 Million has the objective of ensuring that pastoralists get better value for their livestock. It will do so by upgrading standards and equipment to check the conformity of livestock and livestock products to international standards so that Kenya can strive to export meat products with more value rather than live animals; facilitate the regional livestock trade; and de-risk private investment in the livestock value chain that benefit pastoralists with reliable contracts . The implementing agent for Component 2 is through Kenya Development Corporation and State Department for Livestock Development.
The current drought crisis shows that a new approach to respond to drought is needed, one that relies on pre-arranged financing instruments to put money into pastoralists’ pockets at the onset of the drought, rather than on assistance after the drought has been declared, which may arrive after the animals have perished.
“The project expands access of pastoralists to a package of financial services, so that they may receive insurance payouts in their accounts in case of severe drought and use their savings in case of moderate shocks,” ZEP-Re CEO Hope Murera said.
DRIVE project aims to provide pastoralists with reliable livestock markets where they get better value for their livestock by selling more regularly and directly to livestock processors and exporters. This financial protection against drought frees pastoralists from keeping many animals to protect themselves against drought shocks.
DRIVE will be implemented in 21 ASAL counties of Turkana, Marsabit, Mandera, Wajir, Garissa, Tana River, Isiolo, Samburu, Meru, Tharaka Nithi, Baringo, West Pokot, Narok, Laikipia, Kajiado, Makueni, Kitui, Lamu, Taita Taveta, Kilifi and Kwale and the beneficiaries are Pastoral groups that are sufficiently structured around productive activities.
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