AGRICULTURAL VALUe ChAIn FInAnCInG In KenYA
AGRICULTURAL VALUe ChAIn FInAnCInG In KenYA
AGRICULTURAL VALUe ChAIn FInAnCInG In KenYA
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10 • <strong>AGRICULTURAL</strong> VALUE CHAIN FINANCING IN KENYA: ASSESSMENT OF POTENTIAL OPPORTUNITIES FOR GROWTH<br />
management and government also recognizes the contribution of livestock<br />
(including beef) to the pace of achieving the millennium development goals<br />
of economic growth and poverty eradication.<br />
With respect to Government of Kenya <strong>In</strong>tervention, the Beef value chain was<br />
not penalised by this rater and was awarded the possible six percent. The beef<br />
sector is fully de-regulated and highly liberalised. Government only interacts<br />
with the market to quarantine for disease prevention and control which is<br />
positive for the development of the sector rather than impeding its growth.<br />
3.7 COMPLEMENTaRY Ta aND BDS<br />
<strong>In</strong> terms of access to technical support services, the beef value chain received<br />
the full value of two percent for this rater. IFAD, ADB and World Bank have<br />
provided technical assistance for productivity (including breed selection),<br />
disease surveillance and control, support for processing and marketing of beef,<br />
strengthening butcheries (disease identification and hygiene requirements).<br />
Vaccination facilities and vaccines are also widely available. Nonetheless, while<br />
services are available, they are least accessed by pastoralists who comprise the<br />
majority of the beef suppliers.<br />
Considering technical assistance, other than large commercial ranches where<br />
buyers offer vet service assistance to producers, there is no evidence of service<br />
provision by the value chain actors. This rater thus received zero percent.<br />
3.8 GEOGRaPHICaL SPREaD<br />
When considering concentration of clients for financial services, it was observed<br />
that beef production is widespread in the Uasin Gishu, Kajiado/Machakos,<br />
Laikipia and Taita sub-zones stretching more that 20 districts. Beef slaughter<br />
houses, though largely concentrated in the cities, were found throughout<br />
in the whole of Kenya. Thus, the value chain received a full allocation of ten<br />
percent for this rater.<br />
With respect to access to minimum infrastructure to underpin financial<br />
services, with little exception much of the beef livestock infrastructure has<br />
consistently deteriorated (holding grounds, stock routes, watering points and<br />
quarantine stations). Water scarcity caused by drought and poor infrastructure<br />
has disrupted livestock/beef production and distorts marketing. Road<br />
infrastructure for trucking the beef livestock to slaughter houses is fair though<br />
a lot of trekking of livestock is still being undertaken by the traders. With little<br />
proper commercial infrastructure, provision of financial services is similarly<br />
difficult to concentrate. Thus, this rater was given zero percent by the authors.