Kenya National Chamber of Commerce and Industry (KNCCI), in partnership with Africa Guarantee Fund and Space AI, has launched a Climate-Smart Dairy Value Chain Transformation Project at the Tilalwa Multi-Purpose Farmers’ Cooperative Society in Nandi County.
Backed by an AGF Capacity Development Grant, the initiative seeks to unlock up to Ksh 600 million in financing to accelerate adoption of climate-resilient technologies and ease persistent constraints including high aggregation costs and limited access to credit.
The program is designed to enhance farmer resilience and productivity through several key pillars:
- E-Mobility Solutions: Implementing sustainable logistics for milk aggregation.
- Financial Inclusion: Introducing “Mkulima Loans” and credit-readiness support for cooperatives.
- Essential Services: Establishing Malisho Service Centers for inputs and animal health interventions, such as East Coast Fever (ECF) vaccinations.
- Social Impact: Launching the “Maziwa ni School Fees” and “Maziwa ni Afya (Lipa SHA)” programs to link milk income directly to education and healthcare financing.
“By integrating climate-smart technologies with accessible financing, we are ensuring that our local communities in Nandi, Uasin Gishu, and beyond can thrive even in the face of environmental challenges. We expect this to create a ripple effect of sustainable income and increased resilience for over 1,500 farmers participating in this initial phase,” said Dr. Erick Rutto, President of KNCCI.
“Employment creation, especially among the youth is at the core of what the African Guarantee Fund – AGF advocates for in its blended financing offering. To achieve this in the dairy sector by working through our partner financial institutions and KNCCI through the support received from EU/AfDB agribusiness programme implies a sustainable empowerment for dairy farmers and enterprises in the value chain,” said Patrick Lumumba, Group Capacity Development Director – AGF.
The launch convened a diverse group of stakeholders, including leadership from KNCCI and AGF, county government officials, financial institutions, and leaders from 45 dairy cooperatives across 11 pilot counties.
As project’s technology partner Space AI has digitized participating cooperatives and implemented farmer profiling, milk data capture, and automated check-off systems. This digital infrastructure strengthens transparency, enhances credit readiness, and enables seamless integration of financing, input services, and social programs across the dairy value chain.
The also event served as a platform to demonstrate practical interventions and align the project with national dairy sector development priorities. By strengthening public-private collaboration, KNCCI aims to ensure the long-term sustainability of the value chain at the county level.
This is fantastic news! It’s wonderful to see organizations working together to help farmers adapt to climate change and build sustainable businesses.
This is a great work,, I appreciate