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Kenya banks on new World Bank-funded Sh500m plan to develop arid areas
Livestock searching for pasture. Kenya has received a Sh519 million boost to reshape economic prospects in the arid and semi-arid lands.
Kenya’s pastoral economy has received a Sh519 million boost under the De-risking, Inclusion and Value Enhancement (Drive) programme, an initiative that is seeking to reshape economic prospects in the country’s arid and semi-arid lands.
The announcement was made on Tuesday during a high-level meeting of government officials, development partners, and players from the private sector at Mövenpick Hotel in Nairobi.
The Drive programme which is being spearheaded by the Kenya Development Corporation (KDC) together with the State Department for Livestock and supported by the World Bank, is seeking to help transition Asal regions from aid-dependent to engines of economic growth.
"With over Sh500 million disbursed across more than 20 counties, we are unlocking long-term value in historically marginalized regions," said Norah Ratemo, the Director General of KDC.
The funding will address fodder production and feedlots to meat processing, leather, aggregation, and livestock trade, in efforts to support climate-smart, community driven development across the livestock value chain.
Some of the Asal counties that will benefit from the programme are Marsabit, Isiolo, Laikipia, Samburu, Narok, Kajiado, Kwale among others that are frequently affected by the droughts.
According to Investment Promotion Principal Secretary Abubakar Hassan, the initiative is a "practical blueprint" for de-risking frontier economies and attracting private investment through blended finance and strategic partnerships. The official reiterated that the government was committed to repositioning Asal regions to become investment zones rich in opportunity.
" We are unlocking high-impact investments in livestock production, agribusiness, water infrastructure, and climate-smart agriculture, while aligning national policies with county priorities," Mr Hassan stated.
The World Bank programme and be implemented through a consortium of public and private partners. Officials further revealed that the DRIVE programme will pave the way for scalable, blended finance solutions that will directly support Asal counties where local pastoralists are reeling from the effects of the recent 'historical' drought.
Refining strategies
The World Bank will seek to gather grassroots feedback in guiding similar investments in the future and even refining strategies to maximize the programme's impact.
At the same time, Maurice Ouma, the Drive project coordinator, emphasized the role of the State Department for Livestock in building investor capacity by providing technical support and policy guidance. This, he said will help investors confidently engage in livestock value chains across the 20 counties.
"This strategic support is vital in unlocking the economic potential of Asal regions and promoting sustainable, investment-ready ecosystems," said Maurice Ouma.
Meanwhile, the State is also banking on the newly commissioned Ewaso Nyiro tannery in Narok County to breathe new life into the livestock and leather sector while also aiming to prevent an estimated Sh10 billion annual loss due to underutilisation of the industry's potential.
President William Ruto, who commissioned the Sh1.5 billion tannery last week announced that the project was aimed at strengthening the country's leather value chain through localized processing and manufacturing.
The head of state noted that Kenya’s leather industry remains largely untapped, with most raw hides and skins being thrown away by pastoralists instead of being processed locally for a value.
Dr Ruto revealed that the Kenya Kwanza administration was seeking to end the importation of leather products into the country and embrace locally produced leather products.
"We will end end the importation of shoes and other leather products and instead embrace value addition of our hides and skins. The importation of leather products like shoes is denying our youth job opportunities," Dr Ruto said in Narok last week.
“We have a huge opportunity to transform the leather industry, create jobs, and boost our economy," he added.
Kenya currently imports significant volumes of finished leather products, including shoes and bags, despite having a large livestock population that could support a thriving local leather industry.
With the new investments and policy measures, the President expressed optimism that the country will reverse this trend and reduce imports and also position itself as a competitive player in the global leather market.