The initiative arrives at a critical moment for the dairy sector, which contributes an estimated 3 to 4% of Kenya’s gross domestic product but continues to face high aggregation costs, limited access to finance and slow adoption of climate‑resilient technologies.

Speaking to Channel Africa on Tuesday, Daniel Biketi, Head of Programmes at the Chamber, said the project focuses on strengthening the entire dairy value chain, from production to the end market. He emphasised that boosting farmer incomes requires tackling inefficiencies and losses across input supply, logistics, aggregation and processing.

“We are looking at how to scale production for smallholder farmers and secure the end market,” Biketi said. “A key challenge is managing expenditures while ensuring income. This project supports every actor along the chain, from input providers to cooperatives and processors.”

At the core of the initiative is a digital enablement system developed by Space AI, designed to improve traceability, record keeping and transparency. Farmers will have their milk production recorded from the farm gate to aggregation centres, allowing for clear tracking of volumes and reducing losses, theft or manipulation of records.

“Digitising this information helps avoid losses along the value chain and allows farmers to track their production accurately,” Biketi said. He added that reliable data will also support financial inclusion by providing banks and microfinance institutions with verifiable credit profiles for smallholder farmers.

The project is being piloted within the dairy sector to demonstrate how digital scoring and record‑keeping systems can strengthen agricultural value chains. If successful, the approach will be expanded to other sectors such as horticulture, livestock and grains.

Biketi said the ultimate goal is to build climate‑resilient, commercially viable agricultural systems capable of creating jobs, improving food security and unlocking access to finance for millions of rural households.

–ChannelAfrica–