The project seeks to protect herders from severe drought and enhance inclusion in the broader economy.
Livestock Development PS Harry Kimtai said the project will enhance climate resilience of pastoral communities and strengthen commercialisation of livestock production.
It will also ensure the inclusion of marginalised and vulnerable groups such as women and youth.
The government, through the State Department for Livestock Development, in partnership with ZEP-RE (PTA Reinsurance Company), Kenya Development Corporation and the World Bank Group, are set to launch the De-Risking, Inclusion and Value Enhancement of pastoral economies (DRIVE) project.
Speaking during a media briefing, Kimtai said the project aims to de-risk pastoral systems at the primary level through an integrated package of financial services.
This includes 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. By providing them with the necessary support and resources, the project will help increase their resilience and enhance their economic participation while promoting a more sustainable and inclusive economic development model in the country,” Kimtai 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.
More than 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, more than 150,000 pastoralists are expected to benefit from the project across arid and semi-arid lands.
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.
"Today marks a pivotal moment in Kenya's development journey as we launch the DRIVE project. Our joint commitment to unlocking the full potential of pastoral economies is unwavering, and DRIVE is a big step towards achieving sustainable and inclusive development," KDC acting director general Norah Ratemo said.
"We are confident that the project will drive positive change, create new opportunities, empower communities, and foster resilient, thriving economies of the ASAL regions."
Richard Kyuma, the DRIVE project coordinator, said the five-year project has two components with a budget of Sh16 billion.
The allocation for component one in Kenya is Sh8.5 billion and involves de-risking pastoral production through a package of financial services.
This seeks to protect pastoralists against recurring drought shocks with a package of financial services, including drought index insurance, savings for resilience, digital accounts, financial education and awareness creation.
Kyuma said the second component will focus on livestock value chains and trade facilitation, with a budget of Sh7.5 billion.
This is aimed at connecting pastoralists to market with better quality infrastructure, trade facilitation and improved logistics.
The specific objectives are upgrading quality infrastructure for livestock' trade facilitation and trade infrastructure and de-risking facility to attract the private sector.
"The implementing agent for component two is through Kenya Development Corporation (KDC), with a Sh4.6 billion budget and State Department for Livestock (SDL), with Sh2.8 billion budget,” he added.
ZEP-RE (PTA Reinsurance Company) managing director and CEO Hope Murera said they are committed to supporting the regional financial inclusion agenda.
"ZEP-RE is particularly keen to ensure equity empowerment of pastoral communities by focusing on innovating how women, youth and people with disability would also access financial services and linkages to markets and trade-related opportunities under component two," Murera said.
"We look forward to scaling financial packages that support the resilience of the communities against various shocks.”
The project will be implemented in 21 ASAL counties of Turkana, Marsabit, Mandera, Wajir, Garissa, Tana River, Isiolo, Samburu and Meru.
Others are Tharaka Nithi, Baringo, West Pokot, Narok, Laikipia, Kajiado, Makueni, Kitui, Lamu, Taita Taveta, Kilifi and Kwale.
The beneficiaries are pastoral groups that are sufficiently structured around productive activities.
