Final Documentation

Kenya Business Services Market Development Programme, DFID, 2008

    With a strong focus on Making Markets Work for the Poor, DFID Kenya's Business Services Market Development Programme (BSMDP) identified key demand and supply-side constraints to growth in Kenya's dairy and export horticulture subsectors, and sought to address them. These markets were selected based on their pro-poor and growth potential, along with the potential for BDS to impact productivity in each. The constraints to growth addressed involved the market for business services and the wider regulatory framework. BSMDP used a 'market facilitation' approach, involving temporary interventions to support the functioning of the markets, and targeted reforms to the business environment aimed at benefiting poor farmers in these sectors.

    Summary of results
    The report finds strong evidence that BSMDP's interventions furthered the growth of both the dairy and export horticulture markets in Kenya. In the dairy sector, BSMDP contributed significantly to the legalisation of raw milk marketing, directly benefiting 40,000 milk traders, as well as to the re-dynamisation of processed milk channels. Both activities are shown to have been key constituents in the growth of the dairy sector.

    BSMDP facilitated service providers that assisted small-scale export horticulturalists in reforming their practices in line with new EU standards, and assisted with the establishment of a local, cost-effective certification organisation. This helped the farmers to continue to sell their produce to this high-end market. BDSMP also contributed to the established of commercially-viable radio programmes that have introduced to Kenya new thinking about business linkages and market information systems.

    The programme is praised for taking a systemic approach, enabling it to reach a large number of beneficiaries by tackling issues at the subsector level. The programme's market-sensitivity and thorough planning are also commended. On the other hand, limited staffing and the heightened ethno-political tensions in 2007 at times put a strain on the programme.

    Associated Activities and Documents
    Market Assessment
    »The Kenyan Dairy Sub-Sector: A Study for DFID Kenya, Ebony Consulting, 2001