About Us

Smallholder Dairy Commercialization Programme (SDCP) is a Programme jointly funded by the Government of Kenya (GOK) and the International Fund for Agricultural Development (IFAD) and beneficiary communities. The Programme is implemented in Dairy Commercialisation Areas in nine Counties namely; Nakuru, Bungoma, Bomet, Kisii, Kakamega, Nandi, Nyamira, Trans Nzoia and Uasin Gishu. The programme loan became effective on 12th July 2006 with completion date being 30th September 2012 and the closing date of 31st March 2013. The midterm review was done in 2010 and the programme was extended for 3 years with a completion date of September 30, 2015 and loan closing date of March 31, 2016.

The total Programme cost is USD 19.75 million of which the IFAD Loan 678-KE is USD 17.49 million and IFAD Grant No 815-KE is USD 0.84 million GOK USD 0.92m and Beneficiary USD 0.5m.The Lead Programme Agency is the State Department of Livestock in the Ministry of Agriculture, Livestock and Fisheries.  

The overall goal of SDCP is to increase the income of the poor rural households that depend substantially on production and trade of dairy and dairy related products for their livelihoods. This will be pursued through two objectives: (i) improving the financial returns of market-oriented production and trade activities by small operators, through improved information on market opportunities, increased productivity, cost reduction, value adding, and more reliable trade relations; and (ii) enabling more rural households to create employment through, and benefit from, expanded opportunities for market-oriented dairy activities, in particular as a result of strengthened farmer organizations.

The Programme was designed to reach 24 000 households engaged in dairy production and trading (representing about 120 000 people) through 600 groups in nine Counties (Nyamira, Kisii, Bungoma, Lugari, Bomet, Nakuru, Trans Nzoia, Uasin Gishu and Nandi. 300 mobile milk traders and 90 milk bar operators were also benefit from the Programme activities. As women undertake a substantial share of dairying operations and form an important share of heads of dairy farms households, it was expected that women will derive extensive income benefits from the Programme.

The Programme was structured around five components: (A) Organizational and Enterprise Skills; (B) Technical Support to Smallholder Dairy Producers; (C) Development of the Milk Marketing Chain; (D) Support to Policy and Institutions; and (E) Programme Management and Coordination.

On 10 September 2014, the Government of Kenya requested IFAD for additional financing to scale up the good results of the existing programme. This was confirmed by IFAD on 23 January 2015 with a commitment of an additional USD 17 million. To allow for a seamless transition to the new four year additional financing phase, the programme was extended for one year with a completion and closure dates being 30 September 2016 and 31 March 2017respectively. The IFADs Executive Board approved the Additional Financing Phase in December 2015 as a result the completion and closure dates will be 30 September 2019 and 31 March 2020 respectively.

The additional financing to the Smallholder Dairy Commercialization Programme will seek to enhance the scale and impact of the Programme through (i) a modular geographic expansion to selected sub-counties within the previous nine counties where Dairy Groups have demonstrated potential to graduate to market-oriented farming and (ii) the extension of the outreach of activities found to have achieved significant development results during the first phase of the Programme. Activities financed under the additional financing will remain consistent with SDCP objectives.

The additional financing for SCDP scaling up, including physical and price contingencies is estimated at US$ 22.2 million (KSh 2.3 billion). IFAD additional loan for the scaling up phase is estimated at USD 17 million corresponding to 76.5% of the programme costs. The government will finance the taxes and duties estimated at USD 3.06 million, representing 13.8% of total costs. Beneficiaries will contribute USD 1.3 million representing 6% of the total costs. The balance from the IFAD loan under SDCP-Phase I is estimated at USD 0.8 million representing 3.7% of total costs 

During the additional financing phase both the purpose and goal will remain the same. The Programme will be implemented through three components; Component 1- Organization and Enterprise Skills; Component 2- Technical Support to Smallholder Dairy Producers; and Component 3- Development of the Milk Marketing Chain.

In the extended SDCP support, it is estimated  that 1,058 Dairy Groups corresponding to about 26,462 dairy farmers and 625 small milk traders, processors and operators will graduate to market-oriented milk farming or trading with increased incomes, better living conditions and nutritional status. In all, it is expected that the benefits of the programme will reach out to an estimated 162,524 household members