Kenya’s livestock sector contributes 12–14% to the overall GDP, with immense untapped potential in value addition, market access, feed systems, and infrastructure. However, underinvestment in range lands, veterinary services, and aggregation centers limits optimal commercialization.
The emerging role of Public-Private Partnerships (PPPs) has become a strategic imperative for sustainability, economic transformation and food security, fueled by the rise in animal protein demand and a high-potential, yet under-performing livestock economy. Therefore, PPP offers special-purpose vehicles to bridge investment gaps, modernize infrastructure and build a commercially viable and inclusive livestock sector.
It is against this backdrop, therefore, that the African Pastoral Markets Development (APMD) Platform under the auspices of the African Union-Inter Bureau for Animal Resources (AU-IBAR) conducted an evaluation of the Public Private Partnership policy frameworks and their adaptation to strengthen investment in pastoral sectors in Kenya.
Speaking at the AU-IBAR Validation Workshop on the Evaluation of Public-Private Partnership (PPP) Policy and Legal Frameworks and their adaptability in the Livestock sector, Director of Policy and Research at the State Department of Livestock Development, Dr. Christopher Wanga indicated that the country seeks to modernize its livestock sector to strengthen economic resilience, notably through the development of the country’s livestock marketing plan for targeted investments within the sector.
Ideally, the Public Private Partnerships Act, 2021, provides a reformed legal framework that opens new avenues for collaboration between government and private actors, especially in the traditionally underfunded sectors such as the livestock development sector. The PPP Act, 2021 builds on the older 2013 framework with the aim of accelerating infrastructure and service delivery through private investments. Notable reforms include:
- Expanded eligibility for projects beyond infrastructure, including but not limited to agriculture, livestock and social services.
- Centralized governance under the PPP Directorate for better oversight and coordination.
- Streamlined project approval process to reduce bureaucratic delays and any other operational impediments.
- Clarity on risk-sharing between public and private entities.
The Draft PPP Policy (2023) further provides strategic guidance on sectorial priorities, with a nod towards agri-value chains, market access and rural transformation.
Despite an improving policy environment, including the Government Support Measures Policy, 2018, successful PPP adoption in livestock requires significant alignment with the sector realities and global best practices. The study therefore underpins the need for the PPP models to adapt to the seasonality, mobility and the risky nature of livestock rearing.
According to the report, policies and legal frameworks should be community-centric to incorporate consultation clauses to ensure that indigenous knowledge, land-use customs and women’s participation are safeguarded during the PPP implementation.
The study notes the need for decentralized coordination since the county governments are the implementing arms of livestock services. Therefore, this calls for capacity strengthening of the county governments in the identification, structuring, and management of PPPs with well-articulated intergovernmental protocols defining the roles and revenue-sharing mechanisms.
Further, the study reveals that the PPP must comply with the public finance regulations as stipulated in the Public Finance Management Act No. 18 of 2012 to avoid liabilities—the PPP Act mandates full lifecycle costing and stakeholder disclosures that effectively safeguards both the government and her citizens. Notably, to attract private investors into rural or ASAL areas—pastoral dominant regions, there is a need for innovative blended finance structures that would combine public grants, concessional loans and private equity as encouraged by Kenya’s PPP policy.
The study emphasized the adaption of the following best practices to ensure that livestock sector investments through PPP are efficient, inclusive and aligned with long-term sustainability and economic growth goals:
- Use feasibility studies to prioritize the bankable livestock PPPs, including the Environmental Social and Governance screening.
- Establishment of livestock PPP pipeline within the relevant county ministries or county economic blocs.
- Leverage digital tools to track and enhance the transparency of the PPP implementation.
- Incorporate climate resilience and disaster risk reduction KPIs into contracts to enhance PPP investment sustainability.
The stakeholder feedback reiterated the essence of alternative financing within the sector, mapping of private investor needs and priorities for ease of uptake of the facilities, and an enhanced business model to clearly draw out value-for-money propositions to private investors.
It is expected that the Evaluation Report will champion the development of generic livestock-specific PPP guidelines to enable investments across the value chain.
Distributed by APO Group on behalf of The African Union – Interafrican Bureau for Animal Resources (AU-IBAR).