Kenya to Benefit from $358 Million Climate-Resilient Dairy Programme

Key Highlights:

• Kenya among four East African nations selected for DaIMA, a six-year regional dairy climate project.
• Project valued at USD 358 million, led by IFAD with USD 150 million co-financing from the Green Climate Fund (GCF).
• Aims to reduce emissions, boost milk production, and strengthen resilience in the dairy value chain.
• Expected to directly benefit 2.5 million people and indirectly reach 15.4 million more across Kenya, Rwanda, Tanzania, and Uganda.
• Includes creation of a Green Dairy Financing Facility to support farmers and agribusinesses.
• Targets a 34 percent increase in milk production and a reduction of 2.1 million tons of CO₂ equivalent over 20 years.

Kenya will be among the beneficiaries of the first large-scale climate investment targeting low-emission, climate-resilient dairy systems in East Africa.

The six-year initiative, known as Dairy Interventions for Mitigation and Adaptation (DaIMA), seeks to strengthen the dairy value chain while addressing the growing effects of climate change through technology adoption, policy reform, and green finance.

Led by the International Fund for Agricultural Development (IFAD), DaIMA is backed by USD 150 million in co-financing from the Green Climate Fund (GCF), bringing the total investment to USD 358 million.

The project was unveiled during the 9th International Greenhouse Gas and Animal Agriculture (GGAA) conference in Nairobi.

It is expected to directly benefit 2.5 million rural people across Kenya, Rwanda, Tanzania, and Uganda, and indirectly reach 15.4 million others along the dairy value chain.

Sara Mbago, IFAD’s Regional Director for East and Southern Africa, said the initiative is designed to transform the region’s dairy sector into a low-emission, climate-smart system that supports farmers while safeguarding the environment.

“DaIMA is about transforming the backbone of East Africa’s dairy sector. By combining innovation, investment, and policy reform, we are helping farmers adapt to a changing climate while reducing emissions and creating opportunities for growth,” she said.

Through improved breeding and feed systems, better veterinary and extension services, and restored grazing lands, the project is expected to boost milk production by 34 percent and cut emissions by 2.1 million tons of CO₂ equivalent over the next 20 years.

A key component of the programme is the Green Dairy Financing Facility, which will expand access to climate finance for farmers, cooperatives, and small and medium-sized enterprises.

DaIMA brings together a wide network of global partners, including IFAD, GCF, the International Livestock Research Institute (ILRI), the FAO Investment Centre, the Global Methane Hub, the Global Dairy Platform, and USAID Food and Agriculture.

The initiative prioritizes inclusion, ensuring that women, youth, and marginalized groups are actively involved and benefit from climate action.

ILRI Director General, Appolinaire Djikeng, described DaIMA as a major step toward achieving the goals of the Paris Agreement by scaling up sustainable, low-emission dairy solutions across East Africa.

“The DaIMA programme represents a major milestone for the dairy sector. By scaling up low-emission, climate-resilient solutions, DaIMA directly supports the implementation of the Paris Agreement, accelerating the sustainable transformation of the dairy sector in the region,” said Djikeng.

As part of implementation, ILRI will provide technical assistance to all four countries through its Mazingira Centre, which serves as a regional hub for monitoring and verifying greenhouse gas emissions.

The dairy sector plays a crucial role in food security and livelihoods in East Africa but continues to face severe challenges from heat stress, drought, and feed shortages.

DaIMA will help smallholder farmers strengthen productivity and resilience through access to climate information, improved breeding and feeding practices, manure management, and pasture restoration.

Already operational through four ongoing IFAD projects aligned with national priorities, the programme aims to restore 180,000 hectares of rangeland and support over two million dairy cattle across the participating countries.