How to make Northern Kenya into Kenya’s food basket

Northern Kenya is one of the most viable investment frontiers particularly in the agri-business and livestock value-addition sectors with plans by stakeholders to increase usage of the arid and semi-arid lands and water resources through smart practices.

According to a stakeholders meeting at the Northern Kenya Impact Investment Conference in Nairobi, micro, small, and medium enterprises (MSMEs) operating in the region are key in driving the region’s agricultural transformation.

The two-day conference being held in Nairobi organized by the Government of Kenya, USAID Kuza, County governments from Garissa, Isiolo, Lamu, Mandera, Marsabit, Samburu, Tana River, Turkana, Wajir, and West Pokot brought together the private sector entrepreneurs and potential investors focusing on the region.

East African Community, ASALs and Regional Development, Principal Secretary, Kello Harsama, visiting exhibitors at the Northern Kenya Impact Investment Conference in Nairobi

To expand equitable financing for Micro, Small, and Medium Enterprises (MSMEs) in agriculture value chain, the Impact for Northern Kenya (INK) Fund, a sustainable impact investment fund from USAID Kenya and East Africa in collaboration with USAID Kuza has disbursed over $26.1 million (Kshs 3.37 billion) in micro loans to over 13,000 enterprises.

As a result of the financing extended since 2022, the fund recorded 23,700 new jobs have been created in sectors such as agri-processing, livestock value addition, manufacturing, energy, and climate resilience.

ASALs and Regional Development, Principal Secretary, Kello Harsama, noted: “As you are aware the ASALs constitute 80% of Kenya’s landmass and supports over 35% of the population, 70% of the national livestock herd and 90% of our wildlife.

East African Community, ASALs and Regional Development, Principal Secretary, Kello Harsama, speaks at the Northern Kenya Impact Investment Conference in Nairobi

We have the opportunity to explore investment opportunities in various sectors including watermanagement and irrigation, infrastructure development, energy through solar and wind, tourism, livestock development and climate resilient agriculture. Each of these sectors hold the promise of creating jobs, enhancing value chains, food security, market provision as well as improving access to essential services.

According to a Regional Investment Plan prepared by the Frontier Counties Development Council (FCDC) in collaboration with USAID Kuza project, there is massive potential for climate-smart agriculture, drought-resistant crops use, water resource management, and sustainable livestock keeping.

Agricultural Finance Corporation, Managing Director, George Kubai, noted: “These are areas that are very productive and they can be able to ensure the county is food secure. There is nowhere I can compare Wajir and Mandera, go to Egypt…. for decades, we have been a key partner financing farmer in the FCDC counties. Through the Impact for Northern Kenya Fund, we have successfully supported MSMES in these counties which align with our goal of enhancing access credit, creating partnerships and capacity building in terms of financial literacy to enterprises to be able to do business sustainably.”

Delegates at the two-day Northern Kenya Impact Investment Conference being held in Nairobi

Earlier this year, USAID Kuza, through the Impact for Northern Kenya Fund launched a new climate finance window, which earmarks $10.3 million (Kshs 1.34 billion) to support small businesses and financial institutions in northern Kenya looking to implement climate-smart practices and enhance the region’s resilience to climate-related challenges.

The discussions at the conference emphasized on the need for incentives to overcome challengesoccasioned by poor infrastructure, underinvestment, and climate change. Some of the strategies includeefficient irrigation systems, planting drought-resistant crops such as sorghum and millet, and employingsoil management techniques, agroforestry and water harvesting which can further enhance productivity.

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