Smallholder Dairy Commercialization Programme

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Smallholder Dairy Commercialization Programme

Smallholder Dairy Commercialization Programme

This programme fosters market-driven development of Kenya's informal dairy industry, working with poor smallholder dairy producers and traders to strengthen their capacity to respond to market opportunities. It builds understanding of the market and technical knowledge of production processes, and improves organizational and enterprise skills.

The informal sector is the dominant force in milk trading in Kenya. About 75 per cent of traded milk is sold outside the processing sector, both because consumers prefer unprocessed milk and because of inefficiencies in formal trading.

At least 800,000 smallholder farmers in Kenya depend on dairy farming for their livelihood. Dairy production improves household nutrition and provides extra income. In addition to family labour, dairy farming generates jobs in wage labour and mobile milk trading for a further 365,000 people. These jobs benefit the poorest people in urban and rural areas.


Source: IFAD

Status: Closed
Approval Date
13 December 2005
2005 - 2019
Agricultural Development
Total Project Cost
US$ 40.02 million
IFAD Financing
US$ 35.34 million
Co-financiers (Domestic)
National Government (add) US$ 2.12 million
Beneficiaries additional financing US$ 1.15 million
Financing terms
Highly Concessional
Project ID
Project Contact
Esther Chitila Kasalu Coffin

Project design reports

Project design reports

Updated Programme Design Report, October 2015 Region: East and Southern Africa

Environmental and social impact assessment

Final environmental and social management framework

Interim (mid-term) review report

Resettlement action framework

PCR digest

Special study

Project list

Audit and Financial Statements

Project completion report




Impact Assessment: Smallholder Dairy Commercialization Programme (SDCP)

October 2017

The Smallholder Dairy Commercialization Programme (SDCP) aimed to foster market-driven development of the informal dairy sector in Kenya.