• Reference: P-KE-AAE-003
• Appraisal Date: 28/10/2009
• Board Presentation: 28/07/2010
• Status: LendingLEND
• Implementing Agency: MINISTRY OF LIVESTOCK AND FISHERIES DEVELOPMENT,
• Location: Laikipia-Isiolo Complex

11.1 The proposed Livestock Disease Free Zones (DFZs) Infrastructure Improvement Project will comprise three components: (a) Infrastructure for DFZs; (b) Support to DFZ Stakeholders; and (c) Project Coordination. The major activities of the project will be carried out in the Laikipia-Isiolo Complex Zone. The main outputs of the project consist of the upgrading of three quarantine stations/holding grounds for a total of 172,000 ha including 1,220km of fencing (200 of electric and 1020 of wire) and upgrading of 14 outspans of 35,000 Ha in total. Each outspan will have livestock handling and watering facilities, offices with equipment, communication systems and staff quarters. Another main output will be the upgrading of 3 veterinary laboratories. The project will be implemented over a period of 4 years (2010-2014).

The specific project objectives are to provide livestock infrastructure for disease control and marketing and to facilitate access of livestock and livestock products to local, regional and international markets and to strengthen institutions in the livestock sub-sector.

9.1 The DFZ project will provide livestock infrastructure for disease control and marketing to facilitate access of livestock and livestock products to local, regional and international markets and to strengthen institutions in the livestock sub-sector. This will allow Kenya to regain access to and expand international markets. This will result in increased commercialization of livestock keeping leading to optimal utilization of resources, increase in export revenues due to access to lucrative international and regional meat markets with greater earnings from livestock enterprises, economic development of the ASALs and increased household incomes and food security. It will also result in the increased availability of safe and quality meat for local and international markets with subsequent improved consumer protection and safety and higher prices for the producers.

9.2 The Bank Group should intervene due to its long term engagement in the agriculture sector and the economic potential of the livestock sub-sector in Kenya. The Bank's comparative advantage and added value to undertake this project emanates from its experience acquired through its long and successful engagement with the Government of Kenya and especially the successful implementation of its large agricultural portfolio in Kenya, which includes projects with infrastructure components operating in the same region such as the ASAL-Based Livestock and Rural Livelihoods Support Project (ALLPRO) supporting livestock production, the Ewaso Nyiro North Natural Resources Conservation Project supporting water supply and the Tsetse PATTEC Project eradicating the tsetse fly as well as similar operations in other countries. The DFZ project will in particular complement the ALLPRO Project which is currently constructing an export abattoir in Isiolo (within the DFZ) and will be the main supplier of livestock for the abattoir. The project will also complement and benefit greatly from the ongoing Bank funded road linking Isiolo and Moyale, a major stock route for livestock transportation. Implementation of the project will result in greater regional trade and integration which is in line with the Bank's MTS.

The Project is expected to benefit 400,000 people in the target zone and with trickle-down effect to another 1.5 million people in the buffer areas. The direct beneficiaries will be the livestock sub-sector operators, including livestock owners (pastoralists, agro-pastoralists and mixed farmers), ranchers, livestock traders, stakeholders in the livestock marketing chain, public and private sector animal health service providers and community based organizations engaged in the sub-sector. The project will increase employment opportunities for professionals in animal health, agriculture, biological sciences and livestock trade and marketing for both the public and private-sector at all stages of the livestock and livestock products value chain. Some of the holding grounds are currently being managed by the Users' Associations and the project proposes the strengthening of these associations to enhance their ability to better participate in the management of the outspans and the overall DFZ. The Government will maintain the role of animal health certification as this is considered a public good.

MPYISI Edson Rurangwa - OSAN1

Amount
UAC 21,700,000