Small-Holder Inclusive Livestock Value Chain Finance: A Case of Taita Taveta Country in Kenya – Coast Province
SMALL-HOLDER INCLUSIVE LIVESTOCK VALUE CHAIN FINANCE:
A CASE OF TAITA TAVETA COUNTY IN KENYA -COAST PROVINCE
KENYA AGRICULTURAL PRODUCTIVITY AND AGRIBUSINESS PROJECT – KAPAP
OCTAVIAN MGHANGA REWONA
TAITA AGRICULTURE & LIVESTOCK ENTERPRISES
THE PROJECT SITE : TAITA - TAVETA COUNTY
It is one of the 5 counties in the Coast
region and is situated to the South
It comprises of four Sub-Counties :
Taita, Taveta, ,Voi and Mwatate
The county covers an area is 17,084
The population is 284,657 people.
KAPAP is implementing and financing
Meat goat value chain in the 20
locations. in the county.
Supports 4,000 households
THE PROJECT - KAPAP
Kenya Agricultural Productivity and Agribusiness Project (KAPAP) is a Government of
Kenya initiative supported by the World Bank.
The Project Development Objective (PDO) is to increase agricultural productivity and
incomes of smallholder farmers from agricultural and agribusiness activities in the
The project activities will contribute to this objective by transforming and improving the
performance of the agricultural technology systems, empowering men and women
stakeholders and promoting the development of agribusiness in the project area.
Low levels of organizational skills.
Low numbers of goats kept per household (averaging 5)
Low numbers of goats sold per household per year (averaging 3)
Low market weights for age i.e. goats weighing 15 kgs at the age of 2 years.
Low market prices averaging between Kshs 850 and 1,200 per head.
Few improved Galla crosses.
High Mortality rates due to CCPP and worm infestations.
Inadequate access to credit facilities.
The project is using “The
Contractual Service Delivery
Process” to finance the
livestock (Meat Goat) Value
This process is designed to
promote agribusiness where
beneficiaries are expected to
returns from the value chain
services offered by service
providers they themselves
The payments for these
contracted services are drawn
from ‘Service Provision Grants’
issued to the beneficiaries by
the project against competitive
Payment for contracted
services is pegged to
achievement of predetermined
outcome indicator benchmarks
that are negotiated between
the beneficiaries (owners) and
the service provider
(consortium) during the
THE CONTRACTED SERVICE PROVIDER – TAITA AGRICULTURE & LIVESTOCK ENTERPRISES
Organized the goat keepers into
zones, CIG`s and into a
Assisted CIG`s develop annual
operational and strategic plans.
Introduced the concept of
weighing goats before selling to
Linked the farmers to local
markets (Butcheries) through
Linked the farmers to KMC and
other regional meat processors
through their CIGs.
Lack of tailor made financing
schemes for goat keepers to
enable them re-stock and trade
with other value chain actors.
Lack of enough stock to meet the
Inadequate access to credit to
enable goalkeepers access
inputs such as breeding bucks,
Vaccines, de-wormers etc
CONCLUSION & RECOMMENDATIONS
A new partnership funding
stream be established.
From this fund, funds to flow
to farmer managed
The AG fund be managed by
an intermediary consortia.
Farmers be given a share
purchase loan through which
they boost their loan portfolio
in their meat goat Sacco to
From the Sacco, farmers will
borrow as need arises to buy
does and bucks for
restocking, to meet the cost
of vaccinations against
CCPP and de-worming.
The Sacco will also offer
trading loans to the
marketing cooperative to buy
the members goats.
The processors and the
butcher-men are free to join
the Sacco and also borrow
to ensure the whole value
MEAT GOAT VALUE CHAIN VISION – RETAIN/CREATE WEALTH OF 15 MILLION PER YEAR
Benchmark No. 1: 10% Payments upon signing of the Contract
S.NO Planned Interventions Expected Outputs
1 Organizing the meat goat CIG members into formal
16 Meat Goat Groups registered with the ministry of social
2 Inventory taking of all the CIG members and
establishment of meat goat collection centres
16 goat collection centres established
3 Initiating Market, market linkages and formalizing
Local and regional market outlets for meat goats established and
goat keepers linked to these markets
Benchmark No. 2 : 20% Payments upon 20% of farmers having acquired Improved breeding buck
4 Community Based selection & culling of breeding
The exercise is completed in the 64 zones in the county
5 Purchase breeding bucks and establish a buck camp A Doe/Buck ratio is ensured and a community based buck rotation
Benchmark No. 3. 30% payments when 40% of the farmers have sold goats each @ Ksh 2,500/=creating an additional income of
6 Training farmers on agribusiness and provision of
Weighing scales and sling for weighing goats introduced and
demonstrated among the oat keepers
7 Facilitating the goat keepers sell meat on wholesale
instead of live goats
Goat keepers are taking their goats to the slaughterhouse through
their group and selling meat to butcher shops.
Benchmark No. 4. 40% payment upon successfully assisting at least 80% of the farmers to market and register additional
income of at least 9 m
8 Facilitate establishment of a meat depot cum retail
Three meat depots established
9 Linking more goat keepers to the meat market
locally and regionally
More goat keepers linked to markets.
Name of CIG Bucks Does Kids Weaners Young
Male Females Males Females
MONTHLY REPORT – COUNTY LEVEL
Bucks Does Kids Weaners Young bucks Hoggets
Male Female Male Female
MONTHLY REPORT – CIG LEVEL
Bucks Does Kids Weaners Young
MONTHLY REPORT – ZONAL LEVEL
No Activity JAN FEB MAR APR MAY JUNE JULY AUG SEP OCT NOV DEC
Grazing Management x x x x x x x x x x x x
Forage Conservation x x x x
x x x x x
Vaccination x x
Drenching x x
Dipping x x x x x x x x x x x x
Drug Purchase x
Mating x x x x x x x x x x x x
Culling & Selection x x
Daily x x x x x x x x x x x x
Seasonal x x x x
Occasional x x
5 MARKETING &
x x x
ANNUAL OPERATIONAL PLAN