Dairy, Meat & Leather Value Chain: Sh5 Billion Boost

Date this post was modified:September 16, 2025

Programme/Project Details

Key Highlights

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💰 Sh5 Billion Injection – Government invests in dairy, meat, and leather to boost productivity and create jobs

🥛 Dairy Expansion – Rollout of 230 milk coolers nationwide

🏦 Affordable Credit Access – Funds disbursed through the Agricultural Finance Corporation (AFC

🍖 Livestock Health & Breeding – Support for vaccination and breeding programme

👞 Leather Value Addition – Upgrading tanneries, training flayers, and promoting local manufacturing

Introduction!

💰 Government Investment

The Government has injected Sh5 billion into the dairy, meat, and leather value chains to:

  • Boost productivity and profitability

  • Create jobs along the value chain

  • Enhance value addition and exports

Funds will be disbursed through the Agricultural Finance Corporation (AFC) at low interest rates, using models like revolving funds and co-guaranteeing with SACCOs and MFIs.


🥛 Dairy

  • 230 milk coolers being distributed nationwide, including a 5,000-litre solar-powered cooler for Witu Cooperative in Lamu.

  • Expansion of cooperatives to tap into the 10-billion-litre dairy initiative.

  • Improved farmer payments and digitized services for transparency.


🍖 Meat

  • Support for vaccination and breeding programmes to enhance livestock quality.

  • Expansion of grazing and fattening projects, e.g., utilization of 25,000 acres of idle land in Lamu for meat and feed production.

  • Strengthened aggregation centres to reduce post-slaughter losses.


👞 Leather

  • Investment in tannery upgrades and value addition to hides and skins.

  • Training of flayers and equipping slaughter points to improve quality raw materials.

  • Expansion of local manufacturing of shoes, bags, and belts to boost exports.


 

🌍 Expected Outcomes

  • Stronger cooperatives driving rural prosperity.

  • Higher farmer incomes across dairy, meat, and leather.

  • Job creation across production, processing, and marketing.

  • Export opportunities opened through partnerships, including new markets in the US.


👉 This Sh5 billion package is transforming Kenya’s livestock sector into a driver of industrial growth, food security, and socio-economic empowerment.

🚀 Medium-Term Commitments: Dairy, Meat & Leather


🥛 Dairy
  • Double national milk production under the 10-billion-litre dairy initiative.

  • Install 230+ bulk milk coolers across 40+ counties to cut post-harvest losses.

  • Modernize and expand New KCC plants to increase processing capacity.

  • Guarantee minimum farm-gate price of KSh 40 per litre to protect farmers’ incomes.


🍖 Meat
  • Expand vaccination coverage and strengthen animal health services nationwide.

  • Scale up breeding programmes for cattle, goats, sheep, and poultry to improve yields.

  • Develop meat processing hubs in arid and semi-arid counties (ASALs).

  • Support cooperatives to invest in feedlots and fattening programs.


👞 Leather
  • Complete the Kenya Leather Industrial Park at Kenanie (Machakos County) with tanneries, manufacturing plants, and effluent treatment facilities.

  • Train 10,000+ flayers and equip slaughter points to improve hide and skin quality.

  • Increase tannery utilization from 25% to 100% by 2027.

  • Promote leather cottage industries and fashion MSMEs to grow exports of shoes, bags, and belts.


🌟 Cross-Cutting Commitments

  • Provide affordable credit via AFC, SACCOs, and MFIs to smallholders and cooperatives.

  • Attract local and foreign investors in dairy, meat, and leather processing.

  • Strengthen cooperatives and farmer groups for aggregation and bargaining power.

  • Create over 300,000 new jobs across the livestock value chain by 2027.


👉 These commitments will transform the livestock sector into a pillar of food security, manufacturing, and export-led growth under the Bottom-Up Economic Transformation Agenda (BETA).

🏭 County Aggregation and Industrial Parks (CAIPs)


✅ What the Government Has Delivered
  • 🚧 18 CAIPs under construction across various counties.

  • 🏢 Facilities include value addition centres and storage hubs for agricultural produce.

  • 🌾 Designed to reduce post-harvest losses and boost farmer incomes.


📊 2025 Budget Policy Statement Highlights
  • 📍 CAIPs are a strategic anchor of BETA’s agro-industrialisation drive.

  • 🏗️ Expansion plan: scale up to all 47 counties by FY 2025/26.

  • 💼 Focused on strengthening agro-processing, supporting SMEs, and creating jobs.


🚀 Medium-Term Commitments (2025–2027)
  • 🌍 Establish a CAIP in every county to serve as a hub for aggregation, processing, and exports.

  • 📦 Equip parks with cold chains, warehouses, and processing plants.

  • 👩‍🌾 Link farmers, cooperatives, and SMEs directly to markets and industries.

  • 📈 Contribute to higher incomes, reduced losses, and rural industrialisation.


🌟 Impact Outlook
AreaTarget/Delivery
CAIPs Constructed18 ongoing; full rollout to 47 counties by FY 2025/26
Core FacilitiesAggregation centres, storage, value addition infrastructure
Main GoalsCut post-harvest losses, boost incomes, enhance exports
Jobs ImpactTens of thousands of jobs expected across value chains

👉 CAIPs are the backbone of Kenya’s agricultural transformation — turning farming into agribusiness, connecting rural producers to markets, and powering inclusive industrial growth.