NAIROBI, Kenya, Aug 29 – Kenya has launched two financing models aimed at stabilising the livestock sector by reducing losses linked to feed shortages, following years of drought-driven shocks.
The models were unveiled at the first Kenya Fodder Contracting and Investment Action (KEFFCIA) forum in Nairobi, convened by the Kenya Feed and Fodder Alliance (KEFFA) alongside the State Department of Livestock and AU-IBAR.
The meeting brought together more than 150 stakeholders, including cooperatives, county officials, fodder enterprises, financiers, and development partners.
The first initiative, the Cooperative Fodder Fund (CFF), is designed to enable dairy cooperatives to set aside a small levy from milk collections to finance fodder production, preservation, and storage.
The money will be used to build local feed reserves and establish distribution centres.
According to sector data, dairy cooperatives lose between 30 and 100 percent of their milk intake during prolonged dry spells, undermining both farmer incomes and processor stability.
The fund is expected to help cooperatives reduce reliance on costly credit and secure feed supplies during drought periods.
For arid and semi-arid lands (ASALs), county governments backed the creation of the Sustainable ASAL Fodder Economy (SAFE) Fund, which will be financed by levies charged at slaughterhouses.
A fraction of fees collected per animal slaughtered will be channelled into a dedicated account to finance fodder production, feed centres, and climate-resilient infrastructure.
Kenya lost an estimated 2.5 million livestock during the 2021–2022 drought, highlighting the vulnerability of pastoral economies to climate shocks.
Counties pledged to legally anchor the SAFE Fund in county laws to ensure accountability and align it with broader drought response strategies.
“If we fix feed, we fix food,” said AU-IBAR Director, emphasising fodder as central to food security and productivity.
The KEFFCIA forum will now be held annually to track investment and accountability in the fodder sector, with counties, cooperatives, and the private sector expected to play a role in driving the financing models.
