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rpP KENYA LIVESTOCK MARKET SYSTEMS ACTIVITY EXPANDING ECONOMIC OPPORTUNITIES AWARD FY2020 QUARTER III PROGRESS REPORT checks the eggs inside his incubator. Thanks to LMS Through the Expanding Economic opportunities Award, he has been able to increase his income stream enabling him to take care of his family. Photo Credit: David Mutua

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Page 1: KENYA LIVESTOCK MARKET SYSTEMS ACTIVITY …

rpP

KENYA LIVESTOCK MARKET SYSTEMS

ACTIVITY EXPANDING ECONOMIC

OPPORTUNITIES AWARD

FY2020 QUARTER III PROGRESS REPORT

checks the eggs inside his incubator. Thanks to LMS Through the Expanding Economic opportunities Award, he has been able to increase his income stream enabling him to take care of his family. Photo Credit: David Mutua

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USAID/KENYA LIVESTOCK MARKET SYSTEM ACTIVITY AA1 PROGRESS REPORT FOR Q3 FY19/20 i

FEED THE FUTURE KENYA LIVESTOCK

MARKET SYSTEMS ACTIVITY EXPANDING ECONOMIC OPPORTUNITIES AWARD (AA1)

FY 2020 Q3 PROGRESS REPORT

01 APRIL – 30 JUNE 2020

Award No: AID-615-L-17-00001

Prepared for

United States Agency for International Development/Kenya

Chief of Party:

DISCLAIMER

This report is made possible by the generous support of the American people through the United States Agency for International Development (USAID). The contents are the responsibility of ACDI/VOCA and do not necessarily reflect the views of USAID or the United States Government

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USAID/KENYA LIVESTOCK MARKET SYSTEM ACTIVITY AA1 PROGRESS REPORT FOR Q3 FY19/20 ii

CONTENTS ACRONYMS LIST ........................................................................................................................................................ III

EXECUTIVE SUMMARY ............................................................................................................................................... 4

AA1 KEY ACHIEVEMENTS (QUALITATIVE IMPACT) ......................................................................................... 11

Objective1. Expanded and Diversified Viable Economic Opportunities ......................................................... 11

IR 1.1 Facilitate more competitive, resilient and inclusive livestock and related market systems to leverage end-market opportunities while insuring inclusion and poverty reduction ....................................................................................................................................... 11

IR 1.2 Strengthen and diversify productive livelihood opportunities, for men, women, and youth........................................................ 21

IR 1.3 Increase secure access to a range of financial products and services to support livelihood diversification, livestock sect or development, and individual and household finance needs .................................................................................................................................. 23

IR 1.4 Improved employability and work readiness skills for young men and women ....................................................................... 25

Objective II. Strengthened Institutions, Systems & Governance ..................................................................... 26

IR 2.1 Strengthened policy environment for the development of livestock and other market systems .................................................... 26

Objective III. Collaborative action and learning for market systems change ................................................. 28

IR 3.1 & 3.2 Strengthened USAID and implementing partners systems for Sequencing, Layering, and Integration and Shared Indicators and Learning to Support Expanded Economic Opportunities ....................................................................................................... 28

AA1 PERFORMANCE DATA TABLE ........................................................................................................................ 30

AA1 CONSTRAINTS AND OPPORTUNITIES ........................................................................................................ 31

AA1 PERFORMANCE MONITORING ...................................................................................................................... 31

AA1 PROGRESS ON GENDER STRATEGY ............................................................................................................. 31

AA1 PROGRESS ON ENVIRONMENTAL MITIGATION AND MONITORING .................................................. 33

AA1 PROGRESS ON LINKS TO OTHER USAID PROGRAMS .............................................................................. 41

AA1 PROGRESS ON J2SR .......................................................................................................................................... 41

AA1 SUSTAINABILITY AND EXIT STRATEGY ..................................................................................................... 42

AA1 LESSONS LEARNED .......................................................................................................................................... 42

SUBSEQUENT QUARTER’S AA1 WORK PLAN .................................................................................................... 42

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USAID/KENYA LIVESTOCK MARKET SYSTEM ACTIVITY AA1 PROGRESS REPORT FOR Q3 FY19/20 iii

ACRONYMS LIST AFC Agricultural Finance Corporation

BDD Bule Dogo Dambicha

CDE County Director of Environment

COVID-19 Corona Virus Diseases 2019

ECS Environmental Compliance Specialists

EIA Environmental Impact Assessment

EIA/A Environmental Impact Assessment and Audit

EMMP Environmental Monitoring and Mitigation Plan

EMMR Environmental Monitoring and Mitigation Report

ERF Environmental Review Form

ERR Environmental Review Report

ESIA Environmental and Social Impact Assessment

GCRF Garissa County Revolving Fund

GOK Government of Kenya

KIM Kenya Investment Mechanism

KNCCI Kenya National Chamber of Commerce and Industry

MSMEs Micro Small and Medium Enterprises

NEMA National Environment Management Authority

REAP Rural Entrepreneur Access Project

RFA Request for Application

SACCOs Savings & Credit Cooperative Organizations

SRC Smart Regional Consultants

TVET Technical Vocational Education & Training

USAID United States Agency for International Development

AA1 Feed the Future Expanding and Diversifying Viable Economic Opportunities in Kenya (Associate Award 1)

SCC Strengthening Community Capacities

STTA Short Term Technical Assistance

SLI Sequencing, Layering, and Integration (SLI).

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USAID/KENYA LIVESTOCK MARKET SYSTEM ACTIVITY PROGRESS REPORT FOR Q3 FY19/20 4

EXECUTIVE SUMMARY This represents the Quarter 3, Year 3 progress report for the Expanding and Diversifying Viable Economic Opportunities in Northern Kenya (Associate Award 1) program under the Feed the Future Kenya Livestock Market Systems activity. ACDI/VOCA and partners Mercy Corps, BOMA Project, and Smart Regional Consultants (SRC) continued to build on the momentum created in the preceding period. Although the reporting period was marked by the COVID-19 crisis, the program applied various operational and technical adaptations to accelerate delivery of its objectives on pastoralist livestock enterprise development, diversified livelihoods, improving access to capital, and developing a youthful workforce to fill critical skills gaps in the five counties (Garissa, Wajir, Isiolo, Marsabit, and Turkana). LMS was able to successfully liaise with county governments to operationalize plans for re-opening markets and the safe resumption of market days in affected areas.

During the reporting period, AA1 commissioned a survey to assess the impact of COVID-19 on micro small and medium enterprises (MSMEs) in Northern Kenya to refine interventions. The survey found that 93 percent of businesses interviewed indicated that the measures put in place to curb the spread of COVID-19 have negatively affected their operations. Major effects include a 77per cent reduction in sales volumes, 52% reported disruptions in transport, and 43% reported an increase in the cost of doing business due to higher transport costs. The pandemic has negatively impacted the financial health of businesses which recorded declining sales, low productivity due to interrupted supply chains, and reduced working hours due to the national curfew and restrictions of movement. With these findings, LMS is developing a response plan with county governments to ensure past USAID investments can withstand the immediate consequences of the pandemic and prepare for a return to normal operations.

Despite this challenging context, LMS exceeded most of its annual targets for Year 3 and is on track to meet or exceed all but three indicators. For example, this quarter alone, 3,721 individuals participated in LMS-facilitated market systems development initiatives. LMS worked with 63 organizations and groups to improve their performance this quarter alone, and thus far in Year 3, businesses supported by LMS have accessed in agriculture-related financing - 199% of target.

This reporting period saw the entry of the LMS and AA1 Chief of Party, As part of his induction, he held virtual meetings with senior county officials from each of the five counties. This not only accorded county leads to meet with J and understand his role within the program, but it was also an opportunity to update on him on LMS’s county-level coordination to date and plans under J2SR.

With the significant role the livestock markets play in the ASAL communities, LMS in collaboration with respective county government departments ensured 13 main and four smaller/feeder livestock markets were operational. In addition, the businesses within the markets were open ensuring local trade of goods and services-adhering to the set health and safety standards. In Turkana- LMS with support to KNCCI and County officials ensured Lowdar and Kakuma Livestock markets are operational and safe for traders while in Garissa, a collaborative effort between LMS and County’s Department of Livestock, Public Health & Trade ensured three main livestock markets ( Garissa Main, Modogashe and Balambala) have resumed business. In Isiolo County, Isiolo Main livestock market registered increased livestock trade as Oldonyiro, Eskot & Merti, and other smaller feeder livestock markets (Kipsing, Ngaremara, Barambate& Biliqo) which were initially closed but have resumed operations. In Wajir County, Griftu & Habaswein Livestock markets have continued to operate, as well as Merille, Korr, Illaut & Merille livestock markets have been operating in Marsabit county.

LMS has identified cooperatives development and strengthening as an important tool to transform pastoral livelihoods by pooling resources and capacities to support collective service provision and inclusive economic growth for target households. SACCOs present an opportunity to mobilize savings and offer financial services to SMEs and poor households who lack access to formal financial institutions. To keep the pastoral food value chain stable and with sustained offtake, LMS has partnered with several cooperatives to reduce the risk of produce under-pricing, among other interventions, which can help transform economies toward more sustainable production. In Isiolo, LMS facilitated the formation of Walqabana Dairy Camel Marketing Co-operative Society Ltd made of three groups and 48 members: Adhesi Self Help Group, Kulamawe, and Anesitu Camel Milk Traders. In Garissa. LMS has mapped out 24 cooperatives targeted for formation within four value chains: camel milk, honey, livestock meat, and livestock feed.

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USAID/KENYA LIVESTOCK MARKET SYSTEM ACTIVITY PROGRESS REPORT FOR Q3 FY19/20 5

Qualitative Impact

Key programmatic highlights for the quarter and adaptations due to the COVID-19 response include:

Engaging Stakeholders and Local resources

Isiolo: The pandemic caused the main egg suppliers from Nanyuki to stop supplying to Isiolo. To address the shortage of fertilized eggs, LMS led the development of a WhatsApp group for poultry value chain actors. There are currently 80 group members, spanning from Kenchic Ltd – a reputable supplier of breeding stock and extension services – to the Isiolo Poultry Farmers Association, large- and small-scale poultry producers, egg hatchery operators, poultry equipment suppliers, feed and chicken processors. The page has allowed farmers to access more than 2,000 fertilized eggs, share information on poultry management, access raw materials, and market their products. The group also trained 69 poultry actors.

Marsabit: Participated in PREG training that served to identify key hotspot wards where individuals are living below the poverty line (Korr/Ngurnit, Illeret, and Loiyangalani). PREG technical working groups were formed as a result, which will work together to provide apt solutions for identified problems. The technical working groups will ensure effective Sequencing, Layering, and Integration (SLI) through shared work plans and close collaboration with relevant county government departments.

Marsabit technical team met with KIM coordinator for Marsabit and Isiolo to identify technical and financial assistance opportunities for LMS and REGAL-AG supported businesses, with an initial focus on eight introduced by the LMS team. The collaboration will ensure that these businesses obtain the support needed to make them flourish. KIM was recently connected with AFC who has expressed interest in working with the targeted businesses. Moyale Animal feeds and Korkora Milk supplies have started loan applications to obtain working capital loans to restart production.

Turkana: The team participated in Turkana County PREG 2.0 onboarding and targeting virtual workshop that was organized and facilitated by PREG learning in Nairobi. The agenda of the workshop was to map PREG partner activities and county government projects and identify hotspots within the county where partners can layer, sequence, and integrate activities to contribute to enhanced resilience. Hotspots included Kibish, Kaleng-Kaikor, and Lake zone wards based on indicators such as percent of individuals below the poverty line, unimproved water sources, humanitarian caseloads, and wasting. The team linked the Kenya National Chamber of Commerce and Industry - Turkana with LMS’s ICT specialist to identify available online platforms that can be used to hold virtual consultative meetings. This was shared with the chamber and they are currently reviewing to determine which one to adopt.

Garissa: LMS is working with World Food Programme (WFP) who have distributed 500 beehives to local farmers along the River Tana. LMS will facilitate the formation of six aggregation groups of 200 farmers and link them to FILAYI Family Farms as the anchor farm for honey processing and marketing. To increase honey production, the Department of Agriculture will collaborate with WFP to support the production of sunflowers to provide the much-needed nectar for bees.

Wajir: LMS has been utilizing county-level established stakeholders’ structures to continue implementing activities amidst the COVID-19 restrictions. The County steering COVID-19 coordination team, Agricultural Sector Development Support Program (ASDSP), and sector working group for livestock and agriculture all supported implementation of key program activities including dissemination of RFAs for various interventions.

Engaging County Governments

Turkana: Co-creation and quarterly update meeting held with the Ministry of Agriculture, Pastoral Economy, and Fisheries where Year 3 achievements and Year 3, Quarter 4 plans were presented.

Wajir: LMS team worked closely with county chief officers from the departments of trade, cooperatives, agriculture, livestock, and fisheries to enhance coordinated efforts in implementing activities. County teams participated in the handover of the Malaba Hills Beekeepers Limited project which will boost honey production and processing.

Garissa: LMS team coordinated with county director of technical and vocational training to develop the concept for the Youth TVET graduate start-up kits, which will be provided in-kind (up to Ksh. 350,000 with a 10% cost-share) to 10 youth who have completed technical skills training in sectors typically neglected due to negative perceptions within communities. Grants are

Use of virtual communication tools to link 80 poultry farmers with key industry

actors, including suppliers, resulted in access to over 2000 fertilized eggs

following a supply chain disruption due to cessation of movement.

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USAID/KENYA LIVESTOCK MARKET SYSTEM ACTIVITY PROGRESS REPORT FOR Q3 FY19/20 6

aimed at stimulating youth to embrace their new vocations and address skill gaps within the county that were identified in the employment study conducted in Year 2. Gaps included motor vehicle mechanics, painting, electrical repair, carpentry, hospitality, welding, and masonry. The in-kind grants will help trainees set up small businesses aimed at creating casual employment opportunities for an estimated 20 additional youth.

The current LMS AA1 Workplan for Garissa was co-created with the Ministry of Agriculture, Livestock, Fisheries, and Cooperatives in line with county priorities and strategies deemed appropriate in addressing its development challenges. The county’s significant involvement ensures that the aspiration of the Garissa populace, as enshrined in the County Integrated Development Plan (CIDP) 2018-2022, is reflected throughout the LMS annual work plan. The plan will undergo regular reviews with the county government to ensure it remains dynamic and relevant to the needs of its constituents. Some strategies articulated in the work plan include:

• Facilitating a cooperative development model to strengthen northern SACCOs and increase efficiencies for collective bargaining power and end-market connectivity

• Identify and support those business opportunities that are the most catalytic, with the greatest potential for ripple effects, going beyond construction and infrastructure-heavy grants

• Providing facilitative support to Garissa County Revolving Fund (GCRF) as a logical approach to building local capacity of governments to manage effective and transparent grant fund facilities. This seeks to build a culture of self-reliance by reducing the dependency on external grants mechanisms to fund new businesses.

Keeping markets safely open

Turkana: LMS visited various livestock and non-livestock markets in the county with a team from the Kenya National Chamber of Commerce & Industry (KNCCI) Turkana to assess operations. Due to some traders not adhering to the Ministry of Health guidelines, the Loya livestock market was closed with plans to shut down Kakuma and Lodwar Livestock markets as well. To support improved hygiene protocols as markets, KNCCI distributed over 450 face masks to these markets and sensitized traders and farmers on the need to adhere to the guidelines. KNCCI successfully lobbied for the reopening of Loya Livestock Market.

Garissa: LMS team, together with sub-county health, local administration, and LMA officials, conducted sensitization training for livestock market users at the Balambala, Garissa, and Modogashe markets on new regulations and safety measures introduced by the ministry of health to prevent the spread of COVID-19. The market users were informed on the right procedures to carry out their business observing the requirements for personal hygiene, social distance, and wearing masks to prevent the spread of the COVID-19 disease. LMS successfully lobbied for the provision of handwashing stations by the county department of health and eight were placed at the entry points to the livestock markets.

Wajir: LMS has worked with the County Department of Public Health and Sanitation to disseminate key COVID-19 messages in livestock markets. LMAs in Habaswein and Griftu livestock were sensitized on the pandemic to ensure people accessing the markets practice the basic hygiene requirements including the delivery of handwashing containers.

Finding new ways to maintain progress

Wajir: LMS leveraged the county government technical team to provide extension services to LMS-supported investments. Grantees were linked to the relevant county departments to provide essential services. Technical support from county engineers provided backstopping and supervision of ongoing construction works while project engineers could not travel to the field.

Preparing stimulus grants to relaunch economic activity

LMS team developed an RFA for stimulus grants to support the Rural Entrepreneur Access Project (REAP) and small business to mitigate the effect of COVID-19 pandemic. This funding opportunity is designed to support continued operation and vibrancy of the livestock sector by offering stimulus grants to ensure local supply/demand -procurement of goods and services and subsidizing the transport costs and support MSMEs to boost their volume of sales in the face of the pandemic.

Data gathering and surveys

LMS commissioned a survey to assess the impact of COVID-19 on MSMEs in Northern Kenya to refine its interventions. From the survey, 93 percent of the businesses indicated that the measures put in place to curb the spread of COVID 19 have negatively affected their operations.

Exploring new business opportunities for stakeholders

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USAID/KENYA LIVESTOCK MARKET SYSTEM ACTIVITY PROGRESS REPORT FOR Q3 FY19/20 7

The COVID-19 crisis and confinement measures are accelerating the use and diffusion of digital tools in the ASALs. This is particularly important in pastoral regions where distances and commuting times are long. A shift in consumer habits can favor local production of products and services as well as mobilize and strengthen local networks and cooperative structures to face future shocks. i.e. the virtual meetings via WhatsApp group for the Isiolo poultry producers- enabled owners of hatcheries to access over 2,000 fertilized eggs.

Quantitative Impact

During the third quarter, LMS supported 3,721 individuals with market system development initiatives – which is a build-up to a total of 6,080 participants reached in this financial year as of June 2020. Despite the COVID-19 challenges, 3,697 individuals in REAP groups continued to receive technical support from LMS through BOMA and Mercy Corps.

IR Indicator Title

FY20

Annual Target

Results

Quarter 3 Cumulative to June 2020

% achieved against Target

All IRs EG.3.2 Number of individuals participating in USG food security programs [IM-level]

7,916 3,721 6,080 77%

IR.1.2 and

IR.1.3 ES.5-1 Number of USG social assistance beneficiaries participating in productive safety nets [IM-level]

5,460 3,637 5,478 100%

IR.1.3

EG.3.1-14: Value of new USG commitments and private sector investment leveraged by the USG to support food security and nutrition [IM-level]

$ 69,968 68,707

120,484

172%

IR.1.3 EG.3.2-27: Value of agriculture-related financing accessed as a result of USG assistance [IM-level]

$ 44,258 38,964 87,871 199%

IR.1.3 EG.4.2-7: Number of individuals participating in group-based savings, micro-finance or lending programs with USG assistance

5,460 3,637 5,435 99.5%

IR 1.1, IR 1.2, IR 1.3, IR 1.4

LMS Custom 1: Number of individuals who have received USG-supported short-term productivity, food security training or nutrition-related training

8,927 84 5,876 66%

All IRs LMS Custom 3: Number of organizations and groups receiving USG-funded technical assistance to improve performance

2,285 63 2,169 95%

IR.8 HL.9-2 Number of children under two reached with community-level nutrition interventions through USG-supported programs

1,037 0 148 14%

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USAID/KENYA LIVESTOCK MARKET SYSTEM ACTIVITY PROGRESS REPORT FOR Q3 FY19/20 8

Achievements across Intermediate Results in Q3

Objective Intermediate Results Q3

Achievement Cumulative Comments

Expanded and Diversified Viable Economic Opportunities

IR 1.1: Facilitate more competitive, resilient and inclusive livestock and related market systems to leverage end-market opportunities while insuring inclusion and poverty reduction

Select and submit for approval 8 applications for growth grants to catalyze market systems 3 11

Note: 3 large grants, 17 small grants, and 21 youth grants were approved in the quarter, with 11 others being packaged for submission

Provide business development services through SRC to at least 12 grantees 12 57

SRC worked with and trained 12 MSME owners to review their BMCs with industry experts and develop feasible business models with clear targets and milestones. Factoring risks and setting realistic break-even points were also considered.

Support 3 PPP opportunities with Turkana, Isiolo and Garissa county governments to ensure their functionality, viability, and potential for impact on market systems 3 3

Ongoing work with active PPPs: Burat/BDD Hay Farm (Isiolo), Garissa County Revolving Fund, and Kerio Breeding Farm/Emperor Scorpion (Turkana)

170 GIRL and REAP groups linked to relevant market actors across the five counties 125 170

24 business groups linked to wholesalers in Isiolo who sold them goods at negotiated prices enabling them to restock and sell profitably to their customers

35 livestock groups were linked to an aggregator from Isiolo town who bought a large herd from the businesses during Eid

Increase capacity of 12 SACCOs to access end markets 1 1 Isiolo Livestock Market Savings and Credit Cooperative Society has hired its manager and commenced operations; with membership including 110 females and 70 males, with of savings

Establish/scale 4 SACCOs to increase borrowing power and facilitate inclusive access to finance for all members 1 1

Roll-out the ‘'health check’' for 18 cooperatives; develop a comprehensive intervention plan to deepen and scale their impacts on farmers across the five counties 3 7

Haror Livestock Marketing Cooperative in Garissa, Moyale Camel Dairy Cooperative and Walqabana Dairy Camel Marketing Co-operative Society in Isiolo

IR 1.2. Strengthen and diversify productive livelihood opportunities for men, women, and youth

Deliver REAP program to 3,240 participants organized in 1,080 groups in Turkana, Wajir, and Garissa 3,240 3,240

LMS, through Mercy Corps, continued to remotely monitor 1,080 business groups and 211 savings groups across the three counties

Deliver REAP program to 2,220 participants organized in 740 groups in Isiolo and Marsabit 2,220 2,220

LMS, through BOMA Kenya Project, continued support to 2,220 participants with remote monitoring and linkage facilitation to target markets and supply chains

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Support 7 REAP groups with grants designed to pull them into the formal livestock market system 7 7

Selected groups will engage in mobile money, grocery businesses, butchery, posho mill, and phone charging businesses. LMS will support USD 24,400 in grants with a cost-share of USD 1,636.

$ in diversified livelihood grants to women and youth entrepreneurs to fill key gaps within productive value chains

Includes Filayi Farms, Marian Johns and Malaba Hills Beekeepers

Small business development grants for 33 businesses operating in REGAL-AG constructed livestock markets 46 67

Small grants to facilitate their establishment and growth within livestock markets, though operations have been impacted by COVID -19

disbursed in large grants that support livelihood diversification within productive local markets $

Large grants approved in the quarter support pond fish farming, dairy production, and honey aggregation and processing

IR 1.3: Increase secure access to a range of financial products and services to support livelihood diversification, livestock sector development, and individual and household financial needs

Support GCRF with training in the loan application vetting process to disburse funds Ongoing

To enhance the efficiency of the fund, LMS engaged STTA to guide, and through the County Department of Trade, the GCRF bill was taken back to the County Assembly for review to reduce the number of sub-county committee members to keep the overhead costs to a low of 3-5%.

Advance the rollout of Agricultural Finance Corporation’s Sharia Compliant Policy and related products in the AA1 target counties Ongoing

AFC targets to support 10 businesses in Isiolo County for the pilot phase of the Islamic financing project. The Isiolo livestock market SACCO will be one of the beneficiaries.

Establish Digi-financing platforms by the AFC tailored for REAP beneficiaries in Marsabit/Isiolo Ongoing

The team is fast-tracking the registration of the REAP groups with the County Department of social services.

4 cooperatives supported to establish/scale SACCOs to increase access to finance 3 3

Haror Livestock Marketing Cooperative in Garissa, Moyale Camel Dairy Cooperative and Walqabana Dairy Camel Marketing Co-operative Society in Isiolo county

IR 1.4. Improved employability and work readiness skills for young men and women

Disburse US$127K for county youth to i) obtain requisite certifications to address key skills gaps in the livestock sector

Fourteen (14) youths from Marsabit scholarships worth and cost share of US were processed though they couldn’t join the institution due to institutions being closed

Provide a total of 83 partial subsidies/scholarships on animal health, dairy production undergraduate courses, and other relevant programs to support succession planning in all five counties 7 25

The seven will pursue two years diploma in Dairy Technology & management (two), Leather Technology (one), Fisheries and Aquatic fisheries (two), and Agronomy (one). LMS will support the youths with a scholarship worth and the youth will cost share An additional 14 youth scholarships are in the negotiation stage.

Strengthened Institutions,

IR 2.1. The strengthened policy environment for the development of livestock and other market systems

Finalize Isiolo county government Gender Policy Ongoing The team offered the technical review to the Gender Policy.

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Systems, and Governance

Finalize county Livestock Policies and Markets Management Frameworks in Isiolo Ongoing

Through FCDC, AA1 engaged the Turkana County Government to finalize the Markets Management Framework and Livestock Policy. FCDC is providing technical backstopping for the legislations and co-funding some activities related to these priorities. The process is ongoing and Bill under preparation. Finalize Livestock Yard Sales Bills in Wajir Ongoing

Land reform and community land registration process completed Ongoing

LMS, through FCDC, completed public education on community land rights, reforms, and sensitization on the process of community land registration in Isiolo, Marsabit, and Turkana counties. Community representatives and elected officials at the county and national participated in sensitization workshops.

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AA1 KEY ACHIEVEMENTS (QUALITATIVE

IMPACT)

Objective1. Expanded and Diversified Viable Economic

Opportunities

IR 1.1 Facilitate more competitive, resilient and inclusive livestock and related

market systems to leverage end-market opportunities while insuring inclusion and

poverty reduction

Intermediate Results

Q3 Achievem

ent Cumulative

Comments

IR 1.1: Facilitate more competitive, resilient and inclusive livestock and related market systems to leverage end-market opportunities while insuring inclusion and poverty reduction

Select and submit for approval 8 applications for growth grants to catalyze market systems 3 11

Note: 3 large grants, 17 small grants, and 21 youth grants were approved in the quarter, with 11 others being packaged for submission

Provide business development services through SRC to at least 12 grantees 12 57

SRC worked with and trained 12 MSME owners to review their BMCs with industry experts and develop feasible business models with clear targets and milestones. Factoring risks and setting realistic break-even points were also considered.

Support 3 PPP opportunities with Turkana, Isiolo and Garissa county governments to ensure their functionality, viability, and potential for impact on market systems 3 3

Ongoing work with active PPPs: Burat/BDD Hay Farm (Isiolo), Garissa County Revolving Fund, and Kerio Breeding Farm/Emperor Scorpion (Turkana)

170 GIRL and REAP groups linked to relevant market actors across the five counties 125 170

24 business groups linked to wholesalers in Isiolo who sold them goods at negotiated prices enabling them to restock and sell profitably to their customers

35 livestock groups were linked to an aggregator from Isiolo town who bought a large herd from the businesses during Eid

Increase capacity of 12 SACCOs to access end markets 1 1

Isiolo Livestock Market Savings and Credit Cooperative Society has hired its manager and commenced operations; with

membership including 110 females and 70 males, with of savings

Establish/scale 4 SACCOs to increase borrowing power and facilitate inclusive access to finance for all members 1 1

Roll-out the ‘'health check’' for 18 cooperatives; develop a comprehensive intervention plan to deepen and scale their impacts on farmers across the five counties 3 7

Haror Livestock Marketing Cooperative in Garissa, Moyale Camel Dairy Cooperative and Walqabana Dairy Camel Marketing Co-operative Society in Isiolo

Livestock Marketplace Development

This reporting quarter, the team’s focus on intensification of livestock producers and markets included a shift in emphasis from LMA training to facilitating the development of safe market procedures, training LMAs on safe market operations, and helping the counties organize multiple actors to keep the critical markets safely running.

The following were the highlights in the respective counties:

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Turkana: LMS facilitated the KNCCI team to visit Loya, Kakuma, Lodwar, Lokori, Lokitaung, Lokichogio, Lokichar, Lowarengak, Kalokol markets to assess their operational status. It was noticed that some traders were not adhering to the Ministry of Health (MoH) guidelines on face masks and social distancing, leading to the closure of Loya Livestock Market and influenced plans to close Kakuma and Lodwar livestock markets. Livestock traders also reported low sales due to the closing of key customers such as hotels. To mitigate this, KNCCI distributed over 450 face masks to these markets and sensitized the traders and farmers on the need to adhere to guidelines. KNCCI was also able to meet with key stakeholders to lobby for the safe opening of hotels in the county. Consequently, the Loya Livestock Market had been reopened, Kakuma and Lodwar Livestock markets are still operating, and most hotels in the county have reopened. Currently, the team is supporting the chamber to conduct a rapid assessment of the effect of COVID-19 on local businesses.

The team, in collaboration with the Turkana County Government, wrote a request letter to Rural Electrification and Renewable Energy Commission (REREC) and Kenya Power and Lightening Commission (KPLC) to support the electrification of the market. At the time of reporting, KPLC, through the last mile program, had erected electricity poles in the market, soon to be followed up with wiring. With electricity in the market, more business is expected to spring up increasing foot traffic and potential livestock customers.

Lokichar town had a livestock sale yard that had not been in operation. In the previous quarter, Lokichar was identified as a town in need of market days. The team, together with other stakeholders facilitated the launch and activation of the market day upon which the sale yard was cleared and commenced operation. During a follow-up visit, it was noted that the market is operating with both livestock and non-livestock items being traded.

Garissa: LMS lobbied for support from the Kenya RAPID program to install water at the Balambala Livestock market which has been commissioned by the Governor of Garissa.

Masalani Livestock market was finally handed over to the LMA without condition following concerted lobbying efforts from LMS and the Livestock Market Management stakeholders. Livestock traders have now started using the market.

Through the LMS stakeholder initiative, the Livestock Department convened inter-departmental meetings that brought on board the Public Health, Revenue department, and Urban planning departments and CLMC to discuss safety measures needed to improve the safety and hygiene of market users in compliance with COVID-19. To forestall market closure, the stakeholders made joint monitoring visits with officials from the three departments to Garissa livestock market to assess the situation regarding compliance with the new health requirements. To prevent the spread of COVID-19, Kenya restricted movement across the Somalia border hence traders from Somalia were not allowed to bring in their cattle to Garissa livestock market. This significantly reduced the number of cattle to Garissa Main Livestock market from 3,500 per week to about 2,500-1,600. The curfew imposed across the county and lockdown in Mandera, Nairobi, and the coastal counties of Kenya also reduced the number of traders.

However, it is worth noting that despite the effect of COVID-19 the revenue collection by the County Government from sales at Garissa Livestock market during the reporting period continued to increase compared to the same period in the previous year. This can be attributed to the measures put in place by the interim Livestock market task force committee that was constituted by the stakeholder forum to provide the surrogate management and mentor LMA while waiting for the Cabinet approval of the proposed merged Livestock market management bill. Revenue collection at the Garissa main livestock market has been streamlined to take place at only two entry points with all other gates locked, this has reduced loss of revenue due to animals sneaking into the market. The county Government recorded an increase in revenue by KSh.

between April – June 2020 compared to the same period in 2019.

LMS held a follow-up meeting with the Chief Officer for Livestock and the Director for Livestock on the distribution of market stalls constructed by the REGAL-AG program at Garissa livestock market. As a result, the department convened the Livestock market stakeholders' meeting to finalize the distribution list of traders identified for the stalls scheduled for the first week of July.

LMS is working with the County Government on a market RFA that will provide an opportunity for market business support to small traders. Five staff members have been identified for specialized training on laboratory technologies, operations, and disease diagnosis around the four livestock markets constructed by REGAL AG. Their roles will be to collect samples and dispatch to Garissa's main market laboratory for analysis.

The graph below shows an increase in revenue flow for the April – June 2020 period compared to the year 2019 as reported by the County revenue department.

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Marsabit: Discussions to support Marsabit livestock markets and Trade Bill were started internally within LMS however no meetings were held with the County Government due to the ban on travels within and outside of the county.

Wajir: Initial planning was conducted with partners including WFP and county government to identify sub-activities and budgetary requirements.

LMS engaged Kenya Power Wajir station to support power connection to Griftu and Habaswein livestock markets. Due to the breakdown at the main station for the last four months, the activity could not be implemented. This will commence once the machines are repaired.

21 members of LMAs in Griftu were linked to the WFP team for the establishment of kitchen gardens in the livestock market for income generation and facilitating learning for other market users.

Isiolo: During the previous quarter, the team facilitated the hiring of Isiolo Livestock Market Savings and Credit Cooperative Society manager after numerous training facilitated by LMS through the Cooperative Department on SACCO formation and operationalization. This has seen the SACCO open its doors for transactions although the deposits from the members have been low since most of the businesses have been affected by the outbreak of the COVID-19 pandemic. The livestock SACCO currently has 110 females, 70 males, and in savings. It is keen on lending to actors in the market.

LMS facilitated a meeting between AFC and Isiolo Livestock Market SACCO executive members. AFC targets to support 10 businesses in Isiolo County for the pilot phase of the Islamic financing project and the Isiolo Livestock Market SACCO will be one of the beneficiaries. LMS is working with the SACCO to meet the guidelines for access to more capital.

To ensure middlemen are well managed for fair trade in the Isiolo Livestock Market, LMS worked with the LMAs in mapping out the 38 market brokers. These brokers will be taken through training that will promote efficient trade in the market, livestock price transparency depending on the body condition of animals, standardization of commission fees, and establishment of an association to attract more traders. The intervention is expected to remove cartels that take advantage of producers offering low prices for their animals.

Support to REGAL- AG business and Livestock markets

A summary of REGAL -AG business support and performance during the reporting period:

LMS facilitated linkage of Emmaus-64 for hay harvesting from the 125-acre leased government land. So far, BDD has harvested 7,000 hay bales from the 60-acre farm and it is anticipated over 18,000 bales will be harvested from the remaining portion which will be stored at Government Burat hay store as part of the lease. BDD shareholders were also renovating the hay shed to protect it against the rains during the period. Part of the harvested hay will be sold at Isiolo livestock markets to cushion farmers against the ravaging effects of drought. LMS facilitated access to improved breeding services to Livestock producers that included Amnaj, Invems, BDD, and Isiolo Livestock Market LMA by GenePlus Breeders Limited. Amnaj feedlot currently has 76 animals and 18 calves under improved breeding technology using superior bull-best practices. The farm is expected to use the improved breeds to upgrade animals at his farm as a model farm to other producers in the region. The improved breeds are expected to fetch

At BDD feedlot farm in Isiolo.

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better prices. The farm has employed nine full-time workers at the facility. So far, the farm has acquired hay from 20 producers from Malkadaka who have supplied over 2,000 bales at to Amnaj farm.

Isiolo Market

Trading at Isiolo livestock market continued despite COVID-19; a directive given by the County and National Government. This has seen the market attract more traders due to many other livestock markets having been shut down. Biosafety measures were observed though the number of sanitation facilities was limited.

LMS team on the other hand continued to sensitize Isiolo livestock market actors on the COVID-19 pandemic in collaboration with Isiolo livestock market LMAs and area chief. The market actors were sensitized on the need to wash their hands with soap, wear a face mask, and keep distance to curb COVID-19. The activity was done using a Public address system from LMS.

The market witnessed increased livestock daily volumes (1,000 sheep and goats and 300 cattle). The supply and demand for animals was high since this was the only operational secondary market in the region due to the closure of the Oldonyiro market in April and May.

Merille Market

LMS technical team conducted meetings with relevant stakeholders mentioned above which ensured that the LMA management obtains a letter that provided the necessary permissions to reopen Merille Livestock Market. The market has since reopened, and livestock activities have started. LMAs and county government officials in the market are ensuring that COVID-19 prevention and mitigation measures are being implemented in the market. LMS is also providing a Public Address System to the LMA management to ensure that COVID-related messages are disseminated to the market users. LMAs and the County government are responsible for the development and dissemination of the messages.

The livestock prices also hiked (50% higher than the normal prices) due to an increased number of external traders and the producers were able to fetch better prices for their animals.

Oldonyiro market

Oldonyiro livestock market was closed in April and May due to many traders flocking the market from different locations hence posing a high risk for the spread of COVID-19. The County and National Government directive called for an organized market system that caused man traders to purchase animals directly from pastoralists homesteads to limit the spread of the disease. However, this was not effective because it was difficult for the government and market management to supervise the actors to ensure they were adhering to the government directives.

LMS lobbied the County government, through the CEC livestock, chief officer livestock and Oldonyiro ward administrator, on the need to reopen Oldonyiro Livestock Market. The issue was tabled in Isiolo county COVID-19 response Committee and reopening was approved on June 23, 2020. The committee recommended various measures to be put in place to curb the spread of COVID-19 in the market that included the use of only two gates; one for people entering the market and the other for entry of animals to ensure adherence to the government directives. It was also agreed that water and soap be placed at the entrance gates for market users to wash their hands when getting in and out of the market. The market users are also expected to put on face masks and observe the 1.5meter social distance rule. Further consultations with the market management lead to the proposal that trading should be restricted to livestock only for now to monitor the situation before they open the market to other commodities. Adherence to the health stipulated guidelines will attract trade in other commodities.

A follow up was done to understand the performance of the Oldonyiro Livestock market after reopening. The team learned that the total number of livestock numbers presented to the market was 10 cattle, five camels, and 4,000 sheep and goats. Few traders turned up in the market (only four compared to the normal of 50 external livestock traders). Livestock sales volumes sold increased from 600 to around 1,500. Strict adherence to COVID-19 restriction measures is in force.

Sensitization of market actors on Covid-19 pandemic at Isiolo market by LMS, Area Chief and LMA

Business activities in the small stock yard in Isiolo market.

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Merti Market

Merti market was operational throughout the quarter although few external traders were witnessed due to COVID-19. Pandemic control measures put in place by the government discouraged several traders from accessing the market.

Eskot market

Eskot livestock continued with operations with traders from Garissa County flocking to the market. Isiolo County Government is in consultations with Garissa County Government to come up with measures to address the spread of the virus in the market.

Duse market

Duse livestock market remained closed throughout the quarter.

Lodwar and Kakuma livestock markets

These markets were on the verge of being close due to the non-conformity of the Ministry of Health guidelines by the traders. However, Kenya National Chamber of Commerce and Industry – Turkana Chapter (KNCCI), through request and facilitation from LMS, managed to distribute masks to livestock traders in these markets, sensitized the traders to adhere to the guidelines and influenced the County COVID-19 Response Team not to close the markets. The markets have thus been in operation up to 10 am daily during the entire period of the quarter, though with reduced livestock sales.

Cooperative and SACCO Establishment and Strengthening

To effect broader outcomes, enhance effective business operations, and mitigate the effects of cartels especially on smallholder livestock producers, LMS initiated the facilitation process on the formation of primary producer organizations, primary marketing cooperatives, and secondary cooperatives in livestock markets. LMS continued to push for the establishment of stronger pastoralist institutions to reach scale and sustainability. Towards this, during the reporting period, the following were key highlights:

Garissa: The mapping of 24 producer and marketing cooperatives was done in five sub-counties with a focus on several livestock-related value chains. The cooperatives will enhance the aggregation of milk, Honey, Livestock, and Livestock feed. One cooperative (Haror Livestock marketing coop) already formed in Balambala. The process of forming the other 23 cooperatives is ongoing. LMS is providing support towards mobilization and training of the Cooperative officials. The CECM of the department of livestock will commit for development of the honey value chain and procurement of 10,000 beehives this financial year. The request for approval has been presented to the county assembly. The CEC committed the directorate of cooperatives to work with LMS on the formation of 13 primary /producer cooperative society, 9 Subcounty level secondary coop societies rather than County cooperative societies and link them to two Cooperative unions facilitating SACCO activities. Subcounty based cooperatives are easy to manage due to homogeneity of the local community that will ensure acceptance and ownership.

Isiolo: The team facilitated the formation of camel milk Cooperative (Walqabana Dairy Camel Marketing Co-operative Society) that comprised of three camel milk aggregators from Isiolo County in Garbatulla ward. This was done by continuous sensitization of the milk actors on the formation and registration of the groups as a camel milk marketing Cooperative. The camel milk cooperative jointly with Adhesi Self Help Group, Kulamawe milk traders, and Anesitu camel milk traders have a total of 48 members. These business groups have been in the camel milk business for more than 10 years. They continue to face a myriad of challenges such as milk wastage as a result of poor milk handling, spoilage due to use of plastic containers that are difficult to clean, exploitation by milk brokers, poor milk prices, lack of a united voice by farmers to lobby and advocate for better milk prices among others. All these challenges are expected to be addressed through the Cooperative formation.

The camel milk Cooperative group in collaboration with Lay Volunteers International Association, LVIA, and LMS is expected to access a camel milk cold chain facility that will see clean milk supplied to Classic Foods Ltd for processing. The intervention is also expected to ensure that no adulteration is done on camel milk and consumers get access to pasteurized camel milk that remains a big challenge due to lack of appropriate aggregation and cold chain facility.

Turkana: The Pastoralist face challenges of limited access to livestock production knowledge and inputs such as fodder, vaccines, drugs, among others. They also do not have adequate value addition activities that would increase the financial return for their livestock. To support the livestock producers to enhance the commercialization of their livestock, LMS is working with relevant stakeholders to support livestock producers to form producer and marketing cooperatives. During the period under review, the team convened and participated in face to face cooperative development meetings that was attended by the Livestock Production Department, Cooperative department, Kenya National Chamber of Commerce and Industry - Turkana Chapter (KNCCI), County Livestock Marketing Council (CLMC), Branch Manager-Toyota Kenya,

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Branch Manager National Bank and TAKAFUL Insurance. From the meetings, the proposal to identify and support the established Kakuma, Lodwar, and Lokichar Livestock Marketing Associations (LMA) into forming producer and marketing cooperatives were adopted. Further, the team facilitated sensitization meetings of the 3 LMAs on the benefits and steps of forming the cooperatives. The department of cooperative development will now be organizing a pre-cooperative training to prepare the LMAs into cooperative formation.

Business Growth and Expansion Grants

During the reporting period AA1 has continued to use a mix of supported livestock-related businesses both soft (e.g. facilitation, policy support, capacity building, technical assistance) and hard (infrastructure, equipment, and service-oriented business grants) interventions.

During the quarter, the following grant activities were conducted in line with the overall aim of the grant facility and the Workplan for the year.

Approved grants

Collectively, we have 111 approved grants to date: 17 large, 46 small, and 48 scholarship grants. During the quarter, three large grants, 17 small grants, and 21 youth scholarship grants were approved:

Large grants

Agricultural Finance Corporation (AFC) in Marsabit County. ACDI VOCA contribution of and grantee cost-share of . The proposed branch will employ five direct staff. Through the Corporation’s Apprenticeship Model, the branch will mentor five apprentices annually supporting human capital development in the county. In the first year of operations, the branch will target to serve five SACCOs and two Micro Finance Institutions (MFIs). AFC will build the SACCOs’ technical capacity to better assess the risks of non-traditional and loose value chains e.g. livestock trading and providing long term funding for onward lending by SACCOs as well as widen their reach.

This is projected to impact 2,000 farmers along the key value chains of livestock production and camel milk. The Corporation will equally deploy its Credit Guarantee Scheme (CGS) with a view of stimulating private sector investment. This is estimated to be leveraged to a tune of in the first year.

Nagis Butchery Park in Turkana County: ACDI VOCA contribution of and grantee cost share of will offer a modern organized business park which will be a one-stop park for livestock producers, meat traders

and customers, hygiene and quality red meat fair and open value/pricing for the livestock- higher value capture due to availability of weighing scale with agreed/market prices. Also, it will provide business opportunities to 16 LMA members who will trade their small stock directly to the market; over 20 women and youth engaged in the sale of diversified products; reduce exploitation of pastoralists by middlemen – as pastoralist will be able to get better prices for their animals; reduce post-slaughter losses because of availability of cold chain - meat freezers, improved access to water as a result of water installation and power from the solar power installation, and boost the income levels of the communities - through improved sales of animals, employment, and improved nutrition.

Hirtis Limited in Wajir County a feedlot farm (subject to USAID environmental approval) (ACDI/VOCA contribution of ; and grantee cost-share Amount of ). The feedlot will increase household incomes for 200

pastoralist households and 200 market traders’ households annually from the purchase of the livestock. Over eight full-time jobs shall be created for the youth and women. The business will become a champion of change and will act as a role model for changing the mindsets/perceptions of pastoral communities to commercialize livestock production.

Small grants (17): Seven small Rural Entrepreneur Access Project (REAP) group grants in Marsabit were approved. The businesses will engage in mobile money, grocery businesses, butchery, posho mill, and phone charging businesses. The businesses have been supported with and they have contributed as cost share.

Five small grants in Marsabit and five more in Isiolo (subject to USAID environmental approval) for small scale traders operating in Merille & Isiolo main livestock markets. These will engage in food and eatery, solar phone charging, and garage businesses. LMS has supported those businesses with and they have contributed as cost share.

Youth grants (21): Close of round III scholarship RFA for Isiolo saw seven additional beneficiaries from Isiolo selected to various courses. In Isiolo, two youths will pursue two years diploma in Dairy Technology & management, one youth will pursue two years diploma in Leather Technology, two youths will undertake two years diploma course in Fisheries and Aquatic fisheries and one youth will take two years diploma in Agronomy. LMS will support the youths with a scholarship worth and the youth will cost-share

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Group review of applications for the Marsabit scholarship RFA shortlisted 14 scholarship, students. These scholarships are worth and cost-share worth . These will pursue one-year certificate courses in Animal Nutrition, Meat Inspection, General agriculture, Animal health & production, Plumbing & Air conditioning, and Dairy production and management.

Submitted grants

During the quarter Wajir Milk Traders (large grant) was submitted to the donor for approval. The business is proposing a mini processing milk plant that will enable them to scale up their processing capacity. Currently, the business is operating from a rented space in town, where the space is not adequate to accommodate all the milk processing activities and storage of the end products and equipment

A total of ten small grants (Wajir 4 & Turkana 6) were also submitted to the donor for approval. These grants are meant to support the small-scale traders(applicants) operating in Lodwar, Kakuma, Habaswein, and Griftu livestock markets to expand their business and help make the market vibrant.

The following pre-award grant activities were also conducted during the quarter: Compliance and technical reviews for applications for large, small, youth/scholarship grants, business assessments and/or pitches, and grant negotiations including design and environmental assessments and reports. Construction activities for active grants and procurement of equipment budgeted are ongoing, including monitoring of grants and cost-share follow-ups for both small, youth, and large grants.

Solicitation

Behavior Change Campaign

Request for Application for promotion of positive behavioral change campaign within the LMS in northern Kenya was issued in June 2020. The aim is to co-design, develop and implement this BCC campaign, and to the extent possible involve other stakeholders including individuals, communities, other USAID implementing partners, local institutions and/or county governments (e.g. producer listening groups, livestock market broker groups, cooperative societies, livestock market association, county livestock market councils, boards, county governments, local opinion leaders/influencers, local artists, etc.) using a series of innovative and practical interventions e.g. behavioral change campaigns, educational programs, awareness campaigns, mass media presentations, publications, and discussions, etc. to address and tackle the behavioral constraints affecting the livestock market system.

As a result of the LMS BCC interventions expected outcome is that:

• Community members, producers/herders will be empowered through awareness creation, organized in form of associations/cooperatives, better County government laws and policies to open up space for more players (including more women and young people) in the livestock market chain and enhance their bargaining power including use of weight, grades, auctions in the sale of their livestock & livestock products.

• LMAs, traders, brokers will be supported to increase efficiency that will incentivize and attract more trade as well as bring scale that will benefit more people.

• County governments will realize more revenue from an increased volume of trade and attract their attention to the improved revenue base and in return invest more funds to develop the sector.

• Developed capacity of the ASALs to produce livestock sustainably and reliably in terms of volume, price, and quality: o Volume: Livestock producers will offer the market a committed number of cattle, sheep, camel, and goats that meet

market demands. o Quality: The cattle, sheep, and goats delivered to the market will meet market demands by conforming to the age,

weight, and condition (fat cover) requirements. Disease-free animals accessing the markets. Producers are aware of the endemic trade-sensitive diseases in the County and ways of controlling them. i.e. those requiring vaccination either by-annual or annual vaccination

o Price: The producers offer animals to the market at a competitive price.

Small Grants - Request for applications for youth in Turkana County who have successfully undergone the Turkana County Internship Program (TCIP) and were interested in starting or growing businesses in poultry, beekeeping, fish, milk, horticulture (feed-related) and other transformative livelihoods were also issued during the quarter. This intervention aims to create opportunities for youth who have successfully undergone the Turkana County Internship Program (TCIP) and are interested in starting or growing businesses that can help address production, processing/value addition, and market access constraints. LMS will work with the county government to strengthen the business management skills of successful applicants. It will also link more youths to financial opportunities within and outside the County Government. Considering that motivation and ability to start a business or livelihood varies between males and females, this entrepreneurship

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opportunity will also present an option that allows young women to have flexible working conditions that self-employment offers while allowing them to better meet their household responsibilities.

A total of 15 applications were received to which 10 passed compliance review and are now being scored by the technical review team. So far, the 10 applicants are interested in Poultry business Six, Fast food restaurant two, beekeeping, one in Fish rearing. The grant funding will be in the form of start-up capital and will finance equipment, tools and/or machinery needed to facilitate the youths to establish or expand their businesses

Planned RFAs – Several pre-solicitations discussions were held during the quarter between the grant and technical teams and co-creation discussions also held with relevant county government officials for several grant opportunities. This include

• RFA for business stimulus grants (covering all 5 counties)

• RFA aimed at supporting business in Modogashe Market in Garissa

• RFA for youth startup kit in Wajir County.

• RFA aimed at supporting pasture, camel milk, poultry and fish production in Isiolo county;

• Apprenticeship RFA for Marsabit and Isiolo counties.

Cost-share

Cost-share update for the quarter is as follows

Cost-share Analysis

Y2Q4 Y3Q1 Y3Q2 Y3Q3 TOTAL

KES KES KES KES KES

Growth grants

Small Grants

Youth Grants

Total

Grant Analysis - Q3 Grants Approval Status

Projections for Balance

Description Sub-Grant

Budget

Grants

Approved/

Awarded

Grants

submitted to

USAID for

Approval

Grants in

Negotiation

Total

Approved +

Pipeline

Balance

Available for

Programming

FY3 and

FY4 Planned

projection

(USD)

Balance

available for

programing

Livelihood and Enterprise Development

Small Grants

Growth Grants

Youth Employability and Workforce Development

Youth-AA1

Innovation

Innovation Grants

Grand Total

Business/SME Capacity Development

AA1 partner SRC continued to provide hands-on mentoring to grantees using specialized STTA to ensure sustainability.

Garissa: DASHEG Farm Group from Garissa township with a membership of 41 members practicing mixed farming along River Tana was inducted to beekeeping and linked to WFP for support with farming tools and 20 beehives. The same group was linked to Filayi Family Farms Limited as the end-market for their honey, the group will aggregate honey from members

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for processing and marketing. Training for the group was delayed due to the MOH guidelines that banned public gathering to prevent the spread of COVID-19.

Seven Bura women Milk traders were trained for two days on group dynamics and the formation of Cooperative to enhance

milk aggregation and marketing.

Twelve Bura fodder farmers trained by LMS and linked to Kamuthe Young Farmers Limited for aggregation and storage of

fodder to the hay ban constructed through funding from LMS.

Eight county officials from the directorate of cooperatives have been identified for virtual TOT training. The TOTs will support the formation and capacity building of cooperatives in the six sub-counties of Garissa.

Wajir: Initial mapping for cooperative and trade officers to be trained as trainers of trainers was conducted during the reporting period. Planning for the training including sourcing for trainers was completed in the quarter. The actual training for the county officials didn’t take place in the quarter due to COVID-19 restrictions thus adopting virtual training scheduled for July 2020.

LMS provided BDS services (Fodder establishment, management, and preservation and record-keeping) to fodder producers

that benefited from grant funding. Dokono ventures managed to cultivate 32 acres taking advantage of April long rains

leading to the harvesting of 4,400 bales (activity ongoing) and stored in the haybarn. Equally, Dokono managed to work

with 6 small-scale fodder farmers within Bute through the provision of storage facilities for the farmers. A total of 1,300

bales of from small-scale farmers were stored in the haybarn. Dokono managed to sell 1,000 bales during the reporting

period at a cost of per bale making total sales. 60 farmers were trained initially. There was the training

conducted during the quarter but 10 who benefited from the training were linked to Dokono and Elharar Fodder Farmers'

further engagements and coaching.

To facilitate Malaba's effort to build the capacity of other small-scale honey producers, LMS focused on enhancing the production and processing capacity of the farm. Construction work at the apiary and processing unit was completed and relevant equipment delivered to the grantee. The handover of the site was also done by LMS in conjunction with county departments of agriculture/livestock and the department of trade and cooperative. 15 county officials led by the deputy governor and deputy county commissioner attended the handover. Linkages to government agencies both at the County and National levels were also done during the reporting period. Malaba was linked to the Kenya Bureau of Standards to enhance quality assurance, product testing, and standardization. Malaba was also linked to WFP who will facilitate procurement and distribution of honey packaging materials in the coming quarter. Equally linkage with WFP supported small-scale honey producers within Wajir north was conducted during the reporting quarter.

Marsabit: To support Cooperative capacity-building efforts, Moyale Camel Dairy Coop Society Ltd will spearhead women & youth-led milk value addition efforts via aggregation, cottage processing, and distribution. These efforts will help to reduce the spoilage, contamination, and poor handling of milk and its value-added products as they are taken to market. LMS is the process of procuring the requested milk equipment and the society will cost share to renovate the building to comply with the existing KDB standards.

To strengthen inter-linkages between enterprises, Kandere Farmers Cooperative Society has been identified as the main producers of cereal crops (mostly maize and sorghum) that have been linked to Moyale Animal Feeds Co. to supply maize as raw materials for animal feeds production in Moyale sub-County.

Isiolo: To stimulate and scale commercial fodder production, the team facilitated the signing of a renewable Five- year MOU between County Government of Isiolo and Bule Dogo Dambicha (BDD). This will revive the stalled Burat commercial pasture demonstration farm, to provide training and extension services to pastoralists, develop appropriate technologies for pasture management, and run the facility as a model commercial profitable learning center.

LMS linked BDD to Livestock Department that saw the farm purchase 10 additional dairy cows at that were delivered to the farm after referrals were given from the Livestock Department. This brings the total number of animals at the dairy unit to 17 and 26 at the feedlot. Additionally, LMS also facilitated the linkage of the business to the veterinary Department for the provision of animal health services. Currently, the farm employs four full-time employees and 3 casuals. Below are photos from the farm.

During the period, the Isiolo team monitored the performance of trained pasture producers that was facilitated by LMS in

collaboration with BDD and Livestock Department during the previous quarter. From the monitoring, out of the 13 farmers

trained,6(4males,2females) have planted/set aside 17 acres of pastureland that is expected to yield 3,400 bales of hay. Fodder

harvesting has started and currently, the farmers have managed to supply 100 bales of hay to BDD at LMS in

collaboration with the livestock Department had facilitated the training of the farmers on pasture production and

development and signing of the MOUs between the pasture producers and BDD for the supply of hay.

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The period saw Amnaj Co. Ltd (feedlot owner in Garbatulla) plant 20kgs of pasture seeds in his 4 acres pasture farm in

Garbatulla. The foxtail pasture seeds were supplied by LMS having received the same from Isiolo Livestock Department.

The planting saw communities along Malkadaka also reseed part of their 100-acre pasture farm with seeds harvested from

the same farm for the supply of hay to Amnaj. The other part of the farm had witnessed regeneration of pasture. LMS had

facilitated pasture production and utilization training to the farm that has seen the farm train over 30 producers from the

region on hay production.

During the period, the team hosted a physical meeting with a large-scale pasture producer from the neighboring Laikipia

County on the need to supply hay in Isiolo, Duse, and Oldonyiro livestock markets during periods of drought. The

intervention is also expected to offer ready market to over 100 small scale pasture producers from the region who have been

trained on fodder production by the livestock Department in collaboration with LMS and Amnaj Farm Ltd. The first

inception meeting between the large-scale pasture producer and Isiolo LMAs was also conducted and this saw 150 bales of

hay being sold in the Isiolo livestock market. This will be replicated in Oldonyiro and Duse livestock markets.

LMS facilitated a fish market linkage meeting to address challenges experienced by fish producers in the region. The virtual meeting conducted through Microsoft Teams brought on board 4 fish actors representing fish producers from Merti and Burat ward, Isiolo fisheries Director, LMS team, and the chairman of Nyeri Fish Processing Co. Ltd. It was agreed that the fish processing plant is ready to offtake a minimum of 1,500 kgs of fish at any one time from the region. Price was quoted at per kilogram of fish depending on location. The intervention is expected to increase the annual fish supply from the current 30 tonnes per annum to more than 50 tons per annum.

Turkana: The construction of the poultry processing unit for Victorian Foods is complete, equipment delivered and installed awaiting testing and commissioning. The ice plant has been imported and ready to be delivered. Even before the facility begins operation, it has started experiencing crowding in: The fish processing plant and fish leather turnery from in Kitale have been moved by the grantee to Loropiu. His partner has since injected an additional into the facility towards constructing and furnishing the fish processing space, a cold store, and a fish skin turnery. At the time of reporting, VF had received over 3.5MT of fish valued at from 62 fishermen along the lake for processing and storage in the cold store. He has also trained five local women on fish processing (producing fish fillet). These have been able to produce 700Kg of fishbone meal that will be used for poultry feed and 195Kgs of code-liver oil as by-products. Within the coming quarter, 10 women and 7 youths will be trained in fish leather turning and production of various fish leather products. It is projected that the investment will benefit at least 500 women and 350 youths directly and indirectly. Within the same reporting period, the facility hosted this year's International Environment Day celebration that was graced by the Cabinet Secretary for Environment and Forestry, Hon. Keriako Tobiko and The Governor of Turkana County HE. Josephat Nanok. This was due to the role the investment plays in the County's blue economy. The theme of this year's celebration is “Biodiversity”. In His speech, the Governor acknowledged the role of the investment in reducing post-harvest losses occasionally experienced by fishermen, thus leading to sustainable fishing. On the other hand, the Cabinet Secretary acknowledged the role of the investment in bio-diversifying livelihood of the local community and enhancing sustainable utilization of Lake Turkana, which was the key focus. It is expected that the investment will start operating fully within 2 months.

To increase the production of fish within the county, LMS had released a fish input Request for Application (RFA). During the period under review, the team received 6 applications for scoring. Out of these, 2 qualified to the next stage of business assessment. The two were assessed by the team with the support of Deputy Director of fisheries and a team of 2 people from the National Bank. From the assessment, one person was recommended for funding. National Bank also showed interest in supporting the applicant to set up an agency banking along the lake to help the fisherfolks access financial services easily. The application is currently being finalized for submission to USAID for concurrence.

All Counties: In Marsabit County, LMS has identified Moyale Camel Milk Dairy Cooperative Society as a potential anchor farm (within milk value chain in Moyale Sub-County) that will help in the reorganization of milk production, collection/aggregation, and marketing within this region. LMS has already facilitated this coop to identify and prioritize milk equipment that will help the coop realize this object. The budgeted equipment has been reviewed and LMS is in the process of soliciting quotation (of this required equipment) from the potential suppliers. LMS is also facilitating the coop to identify and contribute cost-share money to undertake required renovation within the existing milk plant to comply with existing KDB standards on milk handling and hygiene. Lastly, through STTA, LMS will provide capacity building and facilitate linkages (finance, end markets) to the society which will lead to increased milk production/aggregation, improved hygiene, and organized milk trade (with high-profit margins) among mil producers within Moyale Sub-County. In Wajir, LMS continued to provide support to anchor farms in the milk value chain (Nourishing Nomads Limited and Wajir Milk Traders). Fully donor approval was received for Nourishing Nomads Limited and construction works for the identified investment was delayed due to the COVID-19 pandemic. Construction work will commence in the next quarter. BDS services were extended to Wajir milk traders during the reporting quarter with a focus on grant package development and submission to the donor for approval.

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In Marsabit County, the grant package for the identified potential grantees (5, mostly young graduates) has been completed

and submitted for USAID approval for the grantees to receive equipment that will help them provide required/essential

health services to the livestock producers in Marsabit County. In Wajir 9 young graduates were identified to receive a grant

geared towards improving access to animal health service.

In Marsabit County, BCC RFA has been shared widely with potential applicants. The technical team in the county is already

conducting remote consultation meetings to provide clarity on the RFA and clear goals that it needs to achieve within the

pastoral set up in the county. The technical team is conducting consultation meetings with key departments such as

Livestock, Agriculture, Health, ITs, and local radio stations to identify potential and apt applicants that will be able to apply

for this grant and delivery the anticipated objectives of this grant facility.

Training of camel milk actors for Classic Foods Ltd was not possible because of the Government directive banning large

gatherings and meetings.

The period saw LMS facilitate linkage of SIDAI Africa to Umaimma poultry group for extension support.

During the quarter, 211 REAP groups in Garissa were linked to livestock markets constructed under REGAL AG and eight GIRL groups linked to the Norwegian Refugee Council (NRC) supported TVET for skills training (one girl took computer design, and seven groups pursued henna decoration & beauty therapy). Four of the eight girls received startup kits from NRC to set up business enterprises (one received a computer and photocopier, three were supported with kits to establish henna decoration & beauty therapy). The other four girls were due to complete their training in henna decoration and beauty therapy during this quarter due to the closure of the training center.

IR 1.2 Strengthen and diversify productive livelihood opportunities, for men,

women, and youth

IR 1.2. Strengthen and diversify productive livelihood opportunities for men, women, and youth

Intermediate Results

Q3 Achievem

ent Cumulative

Comments

Deliver REAP program to 3,240 participants organized in 1,080 groups in Turkana, Wajir, and Garissa 3,240 3,240

LMS, through Mercy Corps, continued to remotely monitor 1,080 business groups and 211 savings groups across the three counties

Deliver REAP program to 2,220 participants organized in 740 groups in Isiolo and Marsabit 2,220 2,220

LMS, through BOMA Kenya Project, continued support to 2,220 participants with remote monitoring and linkage facilitation to target markets and supply chains

Support 7 REAP groups with grants designed to pull them into the formal livestock market system 7 7

Selected groups will engage in mobile money, grocery businesses, butchery, posho mill, and phone charging businesses. LMS will support USD 24,400 in grants with a cost-share of USD 1,636.

$286,000 in diversified livelihood grants to women and youth entrepreneurs to fill key gaps within productive value chains $

Includes Filayi Farms, Marian Johns and Malaba Hills Beekeepers

Small business development grants for 33 businesses operating in REGAL-AG constructed livestock markets 46 67

Small grants to facilitate their establishment and growth within livestock markets, though operations have been impacted by COVID -19

$ disbursed in large grants that support livelihood diversification within productive local markets

Large grants approved in the quarter support pond fish farming, dairy production, and honey aggregation and processing

To achieve results, AA1 continued to employ two distinct yet complementary approaches to facilitate a more competitive and inclusive market system. These include:

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• The implementation of the REAP Model, a poverty graduation curriculum targeting women and adolescent girls and their households with diversified livelihoods, entrepreneurship, and human capital/skills-building support. AA1 will use small grants to pull these groups formally into the livestock market system.

• To strengthen and diversify livelihood opportunities AA1 continued to disburse small and large grants, as well as the use of short-term technical assistance to build the capacity of grantees who received these grants for Tier 2 types of commodities. These Tier 2 products include beekeeping, honey production, crop production, cow milk, fish and poultry value chains, and their related services in addition to non-livestock small businesses operating in livestock markets.

REAP

LMS through the BOMA Project and Mercy Corps directly implements the Rural Entrepreneur Access Project (REAP), a two-year poverty graduation model in Isiolo and Marsabit counties and provides technical assistance to Mercy Corps to implement the model in Turkana, Wajir and Garissa counties.

REAP provides participants training, mentorship in financial, businesses, and life skills, the opportunity to join a savings group, and asset transfers to jumpstart small businesses and income-generating activities. Higher and more regular incomes, access to savings and credit, increased awareness and agency empower participants to escape extreme poverty and build their resilience to shocks. The BOMA Project and Mercy Corps are engaging 5,460 poor women in 24-month REAP cohorts. In Marsabit and Isiolo counties, BOMA is directly implementing three REAP cohorts with a total of 2,220 participants. In Turkana, Wajir, and Garissa counties, BOMA with dedicated Technical Assistance of Graduation Advisors is supporting Mercy Corps to deliver REAP in six cohorts with a total of 3,240 participants.

In the third quarter of the third year of implementation, Mercy Corps continued to remotely monitor a total of 1,080 business groups and 211 saving groups in Turkana, Wajir, and Garissa counties. Remote monitoring of business groups ensured off-site support to REAP participants while maintaining social distance for the prevention of COVID-19. The 211 saving groups composed of 3,240 participants in Turkana, Garissa, and Wajir have also saved up to a total of from which is a 27% increase from the previous quarter. To broaden the financial access/support to the REAP saving groups, all the 211 groups have been linked to the County Department of Social Services and 132 have already been registered and issued with registration certificates.

The main activity this quarter involved supporting and monitoring of business groups during the COVID-19 pandemic. To better understand the impact of the pandemic to REAP businesses, BOMA undertook a rapid market assessment in April targeting a sample of REAP businesses in Marsabit and Isiolo counties to assess immediate, short-term, and long-term threats that the COVID-19 pandemic posed on the program participants and their businesses. From the assessment, most of the REAP business experienced interruptions in supply chains, movement restrictions depressing customer demand, closure and reduced use of livestock markets, and a shrinking economy in general.

During the reporting period, AA1 linked REAP groups to AA1 and REGAL-AG anchor SME firms for inputs. AA1 county teams and STTA through SRC facilitated seven grantees to acquire required licenses, permits, certifications, and utility/electricity connections to run their businesses.

Small grants poultry businesses in Isiolo

Four small poultry businesses (Nameyan Poultry Farm, Umaimma Chicken World, Nelly Poultry Farm, and Kitamnae Poultry farm) continued to operate during the reporting period. In collaboration with Kenchic limited, they have further trained 32 youth (27 Females, 5 males) on improved poultry management. The businesses netted a total of through sales of chicks from their hatcheries. They have a total of 175 improved poultry as breeding stock.

Large grants that focused on diversified livelihoods include identifying opportunities to support awareness on health and hygiene standards with traders, producers, handlers, and aggregators of milk, poultry, and meat products.

Isiolo County: On diversified livelihoods, the LMS Isiolo team followed up on the performance of hatchery operators trained by LMS in collaboration with Kenchic Co. Ltd (reputable supplier of exotic day-old chicks in Kenya). From the monitoring, it was discovered that the farmers were recording over 90% hatchability rate in the last batch of over 500 eggs placed in the incubators. During the quarter, the registered Isiolo Poultry Farmers Association (IPFA) group trained 69 farmers (19 males and 50 females) on poultry management practices with most of them adopting poultry production. Currently, the group has received an order of 2,200 chicks from interested farmers interested to venture into local poultry production.

LMS did facilitate a fish market actors linkage meeting to address challenges witnessed by fish producers in the region. The virtual meeting conducted through Microsoft Teams brought on board four fish actors representing fish producers from Merti and Burat ward, Isiolo fisheries Director, LMS team, and the chairman of Nyeri fish processing Co. Ltd. It was agreed

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that the fish processing plant is ready to offtake a minimum of 1500 kgs of fish at any one time. Price was quoted at r kg of fish depending on location. The fish actors will be consulting the group members after that sign MOU with

the fish company that will see a ready market for harvested fish. The intervention is expected to increase the annual fish supply from the current 30 tonnes per annum to more than 50 tonnes per annum.

Garissa County: The team released a milk, fodder, and fish input RFA that received applications for fish input only. The team will be exploring further ways of supporting the milk and fodder value chains. Conducted a follow-up visit to Bura fodder farmers trained on the quality of fodder in Year 2. The fodder production group of 32 members was linked to AA1 funded grantee - Kamuthe Young Farmers for support in harvesting and storage of fodder. Held a planning meeting with the Garissa County Director of Agriculture. The meeting discussed collaboration with other projects engaged in the Ministry of Agriculture that support activities aimed at increasing crop productivity to direct more focus to the production of oil crops like sunflower and Simsim for production of livestock feed. The department will also work with WFP to support the production of crops that are key in providing flowers and pollen required for bee farming and production of oil, with the resultant bye product (seedcake) being converted to livestock feed. LMS to catalyze investment in animal feed processing equipment to take advantage of resultant seedcake for production of feed supplements required by the feedlots

IR 1.3 Increase secure access to a range of financial products and services to

support livelihood diversification, livestock sector development, and individual

and household finance needs

IR 1.3: Increase secure access to a range of financial products and services to support livelihood diversification, livestock sector development, and individual and household financial needs

Intermediate Results Q3

Achievement Cumulative Comments

Support GCRF with training in the loan application vetting process to disburse funds Ongoing

To enhance the efficiency of the fund, LMS engaged STTA to guide, and through the County Department of Trade, the GCRF bill was taken back to the County Assembly for review to reduce the number of sub-county committee members to keep the overhead costs to a low of 3-5%.

Advance the rollout of Agricultural Finance Corporation’s Sharia Compliant Policy and related products in the AA1 target counties Ongoing

AFC targets to support 10 businesses in Isiolo County for the pilot phase of the Islamic financing project. The Isiolo livestock market SACCO will be one of the beneficiaries.

Establish Digi-financing platforms by the AFC tailored for REAP beneficiaries in Marsabit/Isiolo Ongoing

The team is fast-tracking the registration of the REAP groups with the County Department of social services.

4 cooperatives supported to establish/scale SACCOs to increase access to finance 3 3

Haror Livestock Marketing Cooperative in Garissa, Moyale Camel Dairy Cooperative and Walqabana Dairy Camel Marketing Co-operative Society in Isiolo county

To achieve results under this IR AA1 will support institutions, including new entrants to northern Kenya, to develop, pilot, and promote new lending products for businesses and households to access. To this end AA1 will use the following two strategies:

• AA1 advanced building the capacity and expand the reach and connectivity of financial/lending/microfinance institutions, county revolving funds, banks, and SACCOs/VSLAs to facilitate and promote lending in the north to businesses and households.

• AA1 continued to provide linkages to financial institutions and technical assistance and business advisory services to entrepreneurs (incl. livestock market-based businesses, REGAL-AG businesses, and their supply chains and smallholders) for them to not only improve their access markets/capital but also to increase their financial literacy.

In Turkana, LMS continued collaborating with National Bank and Toyota Kenya to facilitate their linkage to pastoralists and general traders in accessing financial and transport services. During the review period, together with KNCCI, the team facilitated National Bank and Toyota Turkana branch manager to meet with traders in Turkana East, Turkana South, Turkana

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Central, Turkana West, and Turkana North Sub-Counties. The traders presented their needs and shared their recommendations. The two managers committed to set-up an agent where feasible to facilitate access to their services. Further, LMS invited National Bank Manager to participate in business assessment for fish input RFA applicants. One of the participants who was recommended for funding was also identified by National Bank for potential agency banking and distribution dealer for Toyota Kenya’s boat engines and other items along Lake Turkana.

IR 1.3 Activities

Build the Capacity and Expand the Reach and Connectivity of Financial Institutions

Increasing access to finance has been difficult in the risk-prone North, despite high demand. As a result, AA1 has identified potential entry points for financial inclusion through SACCOs/Cooperatives, Shariah-compliant products and services, county revolving funds, and Village Savings and Loan Associations (VSLAs).

Provide Linkages to FIs and Technical Assistance and Business Advisory Services to Entrepreneurs

During the reporting period, AA1 facilitated the growth of savings and credit groups linked to financial institutions and inclusive of small-scale livestock traders. LMS continued to liaise with KIM and extend its leveraging potential by engaging in joint investment planning/mapping roundtables.

In Quarter 3, AA1 continues to strategically help livestock-keeping households, groups, women entrepreneurs and business increase their possibility to access/use financial services by increasing financial literacy (both under REAP and with small/large business grantees) and helping change behaviors in business and financial management of households and micro, small, and medium enterprises (MSMEs). Garissa: Training delayed due to MOH guidelines that banned public gathering to prevent the spread of COVID-19. Virtual training not possible since some of the participants lack smartphones

TOT training delayed allowing for review of the GRF bill to reduce the number of sub-county committee members to reduce overhead costs.

Isiolo: On facilitating access to finance and strengthening County Government institutions, LMS did facilitate a one-hour virtual meeting with Isiolo chief officer for Gender, Youth and Sports, the County enterprise fund manager and the Chairman of the County enterprise board, and SRC team in identifying the capacity needs for the county officials in managing the County Enterprise fund. It was noted that the fund committee needed capacity building on developing a five-year strategic plan, empowerment of the fund manager, and capacity building of the 181 targeted beneficiaries. The County team was also keen on adopting the REAP model in administering the fund for sustainability purposes. The youth, women, and people with disabilities have been allocated from the Isiolo County kitty. LMS will be working with the County Government officials on strengthening their capacity in administering and monitoring of the revolving fund. This is expected to increase access to capital by Small and Medium Enterprises operating the region hence increased purchasing power among the locals.

To facilitate access to sharia-compliant financial products from Agricultural Finance Corporation (AFC) by Isiolo livestock market actors, LMS facilitated a consultative meeting between AFC and Isiolo livestock market Sacco executive members. The meeting was attended by seven executive members (three females, four males). It was noted that AFC targets to support 10 businesses in Isiolo County for the pilot phase of the Islamic financing project and Isiolo Livestock market Sacco will be one of the beneficiaries. The listed documents that are needed from the SACCO to access finance include bank statements, collateral, and membership list. The livestock SACCO currently has 110 females, 70 males, and worth of savings. It is keen on lending money to actors in the market that will see trade enhanced in the market. LMS did facilitate hiring a female youth as a manager that saw the SACCO open doors for its operations.

All Counties: The team also linked KIM to four (4) LMS and REGAL-AG businesses for financial access. (Isiolo livestock market SACCO, Ansim, BDD and Ecotec). The engagement led to LMS presenting the participants' profiles to KIM with the amount requested.

LMS AA1 held a meeting with officials from the Garissa County Department of social services to fast track the registration of REAP saving groups and the development of a capacity-building schedule that will be undertaken by the Department of Social services and the first community bank. The department of social services is facilitating the registration of the groups

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as legal entities. Capacity building will focus on activities that will enhance governance to ensure that the saving groups are directed and controlled following the law and leadership held accountable. LMS has supported the formation of 54 REAP saving groups with a membership of 840 women across five administrative words. To date, each of the REAP saving groups has savings of more than each amounting to K for all the 54 groups. LMS has also linked the saving groups to Equity Bank and First Community Bank for the opening of bank accounts.

IR 1.4. Improved employability and work readiness skills for young men and women

Disburse for county youth to i) obtain requisite certifications to address key skills gaps in the livestock sector

Fourteen (14) youths from Marsabit scholarships worth and cost share of were processed

though they couldn’t join the institution due to institutions being closed

Provide a total of 83 partial subsidies/scholarships on animal health, dairy production undergraduate courses, and other relevant programs to support succession planning in all five counties 7 25

The seven will pursue two years diploma in Dairy Technology & management (two), Leather Technology (one), Fisheries and Aquatic fisheries (two), and Agronomy (one). LMS will support the youths with a scholarship worth and the youth will cost share

. An additional 14 youth scholarships are in the negotiation stage.

IR 1.4 Improved employability and work readiness skills for young men and

women

AA1 recognizes that youth require improved employment and employability skills as they move out of pastoralism. To address these opportunities, AA1 will use a combination of the following five strategies to achieve results: Update: The strategy and plans for this IR could change substantially. Much of the scholarship work was done or underway when the COVID-19 crisis started but substantial work remaining using the strategy below (for year 4 as well) is dependent on schools and dormitories reopening to students. Furthermore, it will depend on the plan’s schools have for remote learning or adaptions to the virtual curriculum identified by LMS. For example, LMS has already identified a virtual training program for entrepreneurship which is planned to be rolled out across multiple counties. That adaption is being piloted in Turkana and if successful will expand.

a) Apprenticeships combined with county govt and TVET capacity building to enhance the quality and outcomes of these programs

b) Internships supported by policy development and technical assistance to improve PSB’s procedures, management, and staff capacity to provide meaningful on-the-job training

c) Partial subsidies, including leveraged financial support from county governments for students to attend select vocational institutions and university programs to upgrade their skills and expertise and enter public service in high priority livestock market systems related positions (succession planning)

d) Partial subsidies provided to youth employed in county government departments and TVETS to attend NITA courses and learn/absorb new techniques and familiarize themselves with latest technologies, to modernize curricula and training programs in the education and public sector

e) Start-up kits for young entrepreneurs, to be awarded in a contest format, to stimulate innovative solutions to old problems, with a focus on climate-smart agriculture, resilience, and environmentally friendly large stock related businesses.

IR 1.4 Activities

Improved employability and work readiness skills for young men and women using a combination of apprenticeships, internships, partial subsidies, and start-up kits

Turkana: The team continued with the partnership with Wadhwani Foundation (WF) and TCG in supporting the enhancement of employability and entrepreneurial skills among youths in the county. During the review period, the team hosted the director of youth affairs, director Technical and Vocational Education Training (TVET), and principal education officer in the LMS office for a follow-up meeting to discuss how to execute the proposed partnership. The meeting saw the

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identification of stakeholders who will be required to support the program by reviewing the training curriculum and any other support that may be needed during the implementation of the training program. These include the Deputy Director youth Affairs, Deputy Director trade, Senior Youth Officer, Senior gender officer, Senior Enterprise Development Officer, Chairman-Turkana County Public Service Board, Director TVET, Deputy Director TVET, County Quality Assurance and Standard Officer, Sub County Director of Education, Principal Education Officer, Sub County Director – Teachers Service Commission (TSC), Sub County Director - Teacher Service Commission (TSC), Curriculum Support Officer – TSC among and 2 KNCCI representatives. Further, a virtual meeting with the stakeholders was held to discuss the implementation of the proposed training program. During the meeting, the stakeholders appreciated the program and welcomed the collaboration. LMS provided data bundles for the stakeholders to facilitate their access to the online training platform. The stakeholders have since approved the curriculum and helped in the recruitment of 15 tutors from 8 learning institutions within Turkana Central (of 2 tutors from Turkana University, 2 from Turkana technical College, 2 from Lodwar Vocational Training Center, 2 from Kalokol Vocational Training Center, 2 from Eldoret Technical Training Institute, 2 from Cambridge College and 1 from Start-Up Lion), who will be trained as Trainer of Trainees (ToTs). The ToTs will then recruit students from their respective institutions and train them on a pilot basis with the support of WF, TCG, and LMS where necessary. This will later be upscaled in all institutions in the entire county if successful. The training will contribute to improved employability among the youths.

All Counties: As reported during the previous quarter, LMS has already awarded scholarships to 2 youth from Isiolo County to undertake a course in meat inspection and the team did monitor the institutional development scholarships awarded by LMS to the 2 (male and female) youths to undertake a Meat inspection course at Athi River Training Institute. From the follow-up, it was noted that from January to Mid-March, before the institutions closed down following Government directives on 15th March to curb the spread of COVID– 19, the students had fully covered the following units-Anatomy, Parasitology, Microbiology, Pathology and affections, Epidemiology, Bacterial and Viral diseases, Meat inspection and hygiene and slaughter process. The students also did two Continuous Assessment Tests and an Abattoir Practical Test which involved the Inspection of carcasses. The students are therefore left with 11 weeks to complete the course. Having qualified meat inspectors in the region will boost the Isiolo County labor force that has only one certified meat inspector.

Two more youth have also been awarded a scholarship to undertake a Diploma course and seven more youth have been shortlisted for scholarships to undertake various courses in Fisheries and aquatic science at KWS.

On Youth employability and provision of quality animal health care services, the team conducted an assessment for three agrovet start-up kits’ applicants from Isiolo county. The assessment saw all the 3 businesses qualify to move to the next stage of developing BMC and budgets. The youths are keen on the provision of animal health services to the community and more so one youth is anticipating to offer A.I services after having gotten a liquid nitrogen tank from the Kenya Animal Genetic Resources Center (KAGRC) and has an MOU with Isiolo County Government on the provision of A.I services to farmers. The other two applicants were keen on conducting outreaches in the region.

Garissa LMS team conducted a business feasibility assessment of an Agrovets business application for small grants by youth from Masalani town. The business will reach livestock producers in Ijara and Masalani wards with services to improve animal health delivery system and increase livestock productivity. The Agrovet will partner with Sidai and other private/ public sector entities to coordinate disease control, vaccination awareness, and capacity building efforts with pastoral populations and smallholders. A total of five youth has been identified for support with a startup kit to set up Agrovet business in remote locations of the county to provide livestock producers access to animal health services and inputs. The agrovets will reach community members in five administrative wards with a total population of 100,562 (Abakaile - 12,434, Shant Abak & Modogashe – 27985, Sankuri - 11,713, Masalani - 31,875, Ijara - 16,555) with animal health services and input supply. They will also educate the general pastoralist population on livestock commercialization and herding for the market.

Objective II. Strengthened Institutions, Systems &

Governance IR 2.1 Strengthened policy environment for the development of livestock and

other market systems

one of the youths awarded scholarship to undertake Meat inspection course at Athi river Institute during a practical session.

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IR 2.1 The strengthened policy environment for the development of livestock and other market systems

IR 2.1 Strategy

To achieve results under this IR AA1 will use the following strategies:

1. Support ASAL county livestock policies 2. Supporting county governments, primarily through FCDC, to harmonize, develop, review and roll-out policies and

governance/institutional strengthening interventions related to livestock market systems

IR 2.1 Activities

Support ASAL County Livestock Policies

The bulk of ASAL counties do not have their livestock policies in place. AA1, based on discussions with AHADI, has identified for Year 3 their urgent finalization as a priority. AA1 will provide technical assistance through AA1 staff and STTA to the formulation, finalization, and implementation of these policies. AA1 Gender and Youth Advisor will also build government capacity to apply a gender & youth approach in policymaking & budgeting. This support will include guidance on policy development around gender and youth. AA1 will begin this support in Isiolo where we are facilitating county government efforts in formulating its Gender Policy.

Support County Governments to Roll-out Policies, Governance, and Institutional Strengthening Interventions Related to Livestock Market Systems via Embedded Policy Advisor and STTA

As part of its J2SR alignment efforts, AA1 is supporting county governments, primarily through FCDC, to harmonize, develop, review and roll-out policies and governance/institutional strengthening interventions related to livestock market systems, focusing on those that will bring about the most need changes/reforms needed for pastoralists, and have the highest potential for addressing constraints. Isiolo: The period saw the livestock bill and rangeland management bill get ratified by the cabinet and now awaits approval by the County Assembly. LMS had provided technical input into the development of the bills.

Garissa: The department of Trade took back the GCRF Bill for review by the county assembly to reduce the number of sub-county committee members to keep the overhead costs to a low of 3-5%. This follows the recommendation by the LMS consultant who supported the vetting process. The GCRF does not generate income and has comparatively huge overheads, with a staff1 complement of 50+ operating a fund of not more than $ The Department is in the process of reviewing the structure of the Fund to have a stronger secretariat (Fund Manager / Admin office) which can carry out the functions of the sub-county committees but in a more cost-effective manner, probably by leveraging on technology.

Wajir: LMS has initiated preliminary discussions with county government and WFP to plan and budget for county Sale Yard Bill.

Turkana: LMS has been engaging the TCG and CLMC on the need to close all illegal trading grounds for livestock in the county. This has however been challenging to enforce due to lack of a legal framework to implement. Noting its importance, the Ministry of Agriculture, Pastoral Economy and Fisheries (MAPEF) in partnership with CLMC has now drafted the 2020 Turkana County Sale Yard Bill, a legal framework that will guide improvement of market access and trade through an efficient, effective and sustainable management of livestock market places in the county. The bill will also provide a framework for gazettement of the market days that LMS supported to establish, advocate for development and improvement of livestock feed bases such as range rehabilitation and management and provide a framework of handling disasters associated with Livestock. The team participated in a one-day stakeholder meeting to provide input on this draft bill. From the meeting, the county government also committed to extending development and implementation of market days in Kangakipur, Napusimoru, Nanam, and Nakalale centers, after recognizing the initial positive outcome that was witnessed with the market days in Lokichar and Kakuma before market days were temporarily banned due to the COVID-19 pandemic.

LMS has been supporting KNCCI – Turkana strengthens their institutions. During the reporting period, LMS supported the chamber to undertake a rapid assessment of the effects of the pandemic to livestock and non-livestock traders by reviewing their physical data collection tools and, provided technical training and guidance on online data development, data collection tool, and data collection process. The two trained staff from the chamber will be able to undertake future assessments with limited technical support. The chamber intends to interview about 1,500 respondents drawn from livestock

1 Staff is used loosely to also factor in the committee members who are on allowances

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and non-livestock traders in urban, peri-urban, and rural centers within the county. The assessment will provide the chamber and other stakeholders with relevant information that they can use to influence decision making, propose intervention, allocation of resources, and enactment of policies at the County COVID-19 emergency committee level where they sit in.

All counties (FCDC): LMS, through FCDC, completed public education on community land rights, reforms, and sensitization on the process of community land registration in Isiolo, Marsabit, and Turkana counties. Community representatives and elected officials at the county and national levels participated in sensitization workshops.

Objective III. Collaborative action and learning for

market systems change IR 3.1 & 3.2 Strengthened USAID and implementing partners systems for

Sequencing, Layering, and Integration and Shared Indicators and Learning to

Support Expanded Economic Opportunities

IR 3.1 Strategy

To achieve results under this IR AA1 will use the following strategies:

1. As per recommendations from the USAID-led stock-taking report, the CLA function, initially housed under the Leader Award, has been devolved to Associate Awards. 2. Intentional sequencing, layering, and integration with AA2, other relevant AAs including AA4, and other USAID programs.

IR 3.1 and 3.2 Activities

Finalization of the Draft CLA Framework

AA1 will finalize the draft CLA framework, generate a CLA plan, and implement it. Within the CLA plan, AA1 will capture learning based on learning questions identified in the CLA Plan. AA1 for IY3 aim to develop learning around:

a. Which incentives/disincentives for behavior change have been most effective in facilitating the adoption of technology/practices, systemic change, and resilience capacities for markets, women, and youth?

b. Which innovations/ technologies/ infrastructures are having the greatest impact on households and are easily adopted?

Update: the learning question approach was to use focus groups, in-person interviews, and significant travel. The plans have been delayed and will need to be pushed into year 4. Alternative methods are being assessed. Also, more immediate learning questions have shifted towards needs assessments for businesses due to the crisis. Survey work is underway in Turkana as a partner to the Chamber of Commerce and with project business stakeholders to better learn how to protect the investments made by USAID in the region.

Sequence, Layer, and Integrate with AA2 and Other USAID Programs

Under the PREG umbrella, AA1 has been involved in County Steering Group meetings where new projects have been introduced from other non-USG partners, which in turn helps to ensure that USG resources are not duplicating assistance. For Year 3, AA2, AA4, KIM, AVCD, KRAPID, KCD, and WFP will be primary PREG partners for AA1 to engage within SLI/CLA activities.

Progress Report Q3

LMS facilitated a fish market linkage meeting to address challenges witnessed by fish producers in the region as found out during the rapid assessment study of fish value chain conducted by LMS. The virtual meeting conducted through Microsoft Teams brought on board 4 fish actors representing fish producers from Merti and Burat ward, Isiolo fisheries Director, LMS team, and the chairman of Nyeri fish processing Co. Ltd. It was agreed that the fish processing plant is ready to offtake a minimum of 1500 kgs of fish at any one time. Price was quoted at per kilogram of fish depending on location. The fish actors will be consulting the group members after that sign MOU with the fish company

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that will see a ready market for harvested fish. The intervention is expected to increase the annual fish supply from the current 30 tons per annum to more than 50 tons per annum.

LMS team had an inception meeting with KIM and identified LMS program participants that needed cash.

LMS AA1 worked with AA4 team in facilitating three PREG monthly meetings in Isiolo.

Consulted with KIM on potential support that approved LMS/REGAL-AG grantees can receive from the organization. KIM Coordinator and LMS Marsabit technical identified three LMS and four REGAL-AG grantees that will require support from KIM. This assistance includes both Business Development Support and financial access (through AFC, which has already received finance from KIM that will be available to livestock-related business as loans). The next quarter will see the two organizations work together to ensure that these identified businesses and others obtain technical and financial support that will expand the business operations within the county.

Isiolo and Garissa County: During this reporting period, the CPM Participated in the PREG on-boarding virtual workshop for County PREG Leads and deputy from Wajir, Isiolo, Marsabit, and Turkana counties. The workshop was facilitated by the RLA and USAID County Liaison Teams Lead via zoom. The overall goal of the orientation process was to align and reinforce PREG collaboration and partnership at both national and county levels. The workshop focused on the evolving PREG operating environment and the role and place of the partnership among existing partners. Such evolving dynamics include the renewed focus of USAID on the Journey to Self-Reliance and how partners will work with USAID under the new partnership arrangements with county governments, the increasing role of county governments, private sector and local communities, as well as the role of new partners and how these present partnership opportunities.

To enhance the J2SR, LMS participated in the virtual PREG 2.0 Orientation and Targeting Workshop for Garissa County that brought together Seven county government officials and six implementing partners (AVCD, Kenya RAPID, WFP, LMS, NIWETU and Save the Children. The purpose of the workshop was to explore new approaches and working modalities between PREG partners and County Governments in the context of J2SR. The targeting framework was also rolled out during the workshop. The new approach will help to identify data and evidence-driven implementation of sites for activity convergence. A joint planning session is scheduled for the next reporting period.

LMS participated in the virtual meeting held by Garissa PREG for May 2020. The meeting presented the platform for LMS to provide updates for on-boarding ToT training from PREG County leads a workshop that was facilitated by RLA. During the meeting, each PREG member (IP) reported how they are coping with COVID 19 pandemic and responses or efforts. The meeting identified and engaged Garissa county officials targeted for the onboarding training. The county officials identified for the onboarding training include; the Director for Partnership and Donor coordination, The county director for Planning and the County Secretary. The three will join other PREG members for the training.

Participated in the PREG on-boarding training with County government department officials under PREG 2.0 and initiated the processes of Joint Work Planning and Collaboration. The 3hr virtual orientation session explored new approaches and working modalities between PREG partners and County Governments in the context of J2SR. A County-Level in-depth Discussion to explore opportunities for support to the county government response to COVID-19 was also done in the afternoon session. The learning discussion took stock of the implications of the COVID-19 pandemic on development priorities in the county, highlighted specific challenges and gaps for further programming and consolidated concerns and contributions of County Government and USAID Implementing partners to COVID-19. The initiative is focused on addressing the potential for duplication of efforts in response to the COVID-19 pandemic.

LMS participated in the PREG 2.0 Orientation and Targeting Workshop for the Garissa County Team facilitated by the LMS Resilience Learning Activity. The workshop which brought together implementing partners and County Government officials identified and prioritized vulnerable sites across the county to be targeted for convergence of services and development of the Joint Work plan. The county government was represented by officials from the department of Donor coordination and partnerships, Economic Planning, and Finance. Based on findings from the analysis of an array of data and evidence presented by the county government, the workshop used the Vulnerability Mapping Criteria tool to select three layering sites as high priority sites for planning and convergence of USAID activities. Following this decision, all implementing partners and the County Government will jointly focus on the three identified sites at Balambala, Denyere, and Jara Jara wards as specific project areas for Sequencing, Layering, and Integration.

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AA1 PERFORMANCE DATA TABLE

IR Indicator Title

FY20

Annual Target

Results

Quarter 3 Cumulative to

June 2020 % achieved against

Target

All IRs EG.3.2 Number of individuals participating in USG food security programs [IM-level]

7,916 3,721 6,080 77%

IR.1.2 and

IR.1.3

ES.5-1 Number of USG social assistance beneficiaries participating in productive safety nets [IM-level]

5,460 3,637 5,478 100%

IR.1.3 EG.3.1-14: Value of new USG commitments and private sector investment leveraged by the USG to support food security and nutrition [IM-level]

$

172%

IR.1.3 EG.3.2-27: Value of agriculture-related financing accessed as a result of USG assistance [IM-level]

$ 199%

IR.1.3 EG.4.2-7: Number of individuals participating in group-based savings, micro-finance or lending programs with USG assistance

5,460 3,637 5,435 99.5%

IR 1.1, IR 1.2, IR 1.3, IR 1.4

LMS Custom 1: Number of individuals who have received USG-supported short-term productivity, food security training or nutrition-related training

8,927 84 5,876 66%

All IRs LMS Custom 3: Number of organizations and groups receiving USG-funded technical assistance to improve performance

2,285 63 2,169 95%

IR.8 HL.9-2 Number of children under two reached with community-level nutrition interventions through USG-supported programs

1,037 0 148 14%

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AA1 CONSTRAINTS AND OPPORTUNITIES

The reporting period coincided with the COVID-19 crisis, which has devastated incomes, livelihoods, and the rhythms of normal life. This led LMS to adapt its working and functional procedures to implement and overcome the challenges to deliver the results. Most of the businesses were negatively impacted due to restrictions of movement of people and disruption to the supply chains.

LMS has adapted the delivery of larger investments by improving safety and distancing on sites, shifting to local technical monitors, using virtual monitoring techniques, increasing the role of stakeholders in project delivery and oversight, and using virtual meetings to organize the workflow of completed, ongoing, and pipeline enterprise investments.

Also, there were reported food shortages due to suppressed production, reduced focus on other emerging crises, e.g. Also, there were reported food shortages due to suppressed production, reduced focus on other emerging crises, e.g. locusts and flooding, depressed demand/supply. This has created the impetus to a renewed focus on local food production and to leverage on technology and distributed financial services to link value chain actors. Positioning the informal sectors as an engine for growth, productivity, and increased incomes/livelihoods.

AA1 PERFORMANCE MONITORING

During this reporting period a validation survey was conducted to verify if the individuals (32,559) profiled between March and November 2018 as users of markets constructed under the REGAL-AG project (closed in November 2018) are still using these markets.

These individuals were reported to have continued to use the markets as part of LMS’s 2019 FTFMS reporting. In due consideration of the time that elapsed since the profiling was conducted, LMS was required to validate the data collected to ascertain:

• If individuals are still utilizing the markets.

• If there are any changes in how they are utilizing the markets, i.e., how they use the market (are they, buyers or sellers, in the market) and products they trade in the market;

• The frequency of market utilization (weekly, monthly, quarterly, annually); and

• If market participants have increased access to goods and services.

The AA1 MEL provided the routine technical support to LMS technical field teams in terms of data collection, data quality assessment. The field validation processes are now limited due to the ongoing Corona emergency in the country limiting field visits.

AA1 PROGRESS ON GENDER STRATEGY

LMS continues to implement interventions with a gender and social inclusion lens, ensuring the achievement of youth and women’s economic empowerment, including expanded access to basic services, financial services, and non-financial assets, jobs, and livelihoods, within an inclusive market system framework. Through its commitments to gender equality, LMS continues to monitor its gender integration efforts to ensure that all interventions make principal or significant contributions to gender equality, and to move beyond activities that engage women and youth as participants, to more systematically support county governments to implement policy reforms that eliminate structural barriers to youth and women’s economic empowerment.

Gender Transformative Youth Inclusive Market Systems Activities

In the reporting quarter, the project documented the progress made by implementing the Youth Inclusive Market Systems (YIMS) approach, with due consideration to the differentiated impacts and adaptations for young women. The interventions and activities designed under YIMS also focus on promoting entrepreneurship as an option that allows young women to have flexible working conditions, with the main anticipated outcome of increasing motivation among young women to participate in entrepreneurship as a viable and sustainable livelihood opportunity. Lessons learned to date indicate that the gender integration efforts into the intervention processes, particularly the interventions that seek to improve youth employability and work readiness has led to gender equity in the uptake of the scholarship opportunities. E.g., girls taking up courses that were previously male-dominated such as Meat Inspection. Other highlights include the following.

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• A significant number of young women, including GIRL graduates, have been awarded small business grants, to help them upgrade, innovate, and add value to their products and services to match market demand, grow their market share, and create new market opportunities.

• Other young women have been linked to internship and scholarship opportunities to improve and increase their practical skills, knowledge, and the quality of workmanship, thus increasing their chance to access new markets and/or employment networks as a support mechanism for their transition into the formal economy.

• The GIRL graduates have equally received asset transfers to promote their ability as young women and girls to continuously adapt to the ongoing shifts in the market

Responding to the COVID-19 Pandemic

During the reporting period, the LMS equally updated the gender strategy to provide guidance and for responding to the pandemic, in terms of identification of ways that COVID impacts women, men, and youth and determine areas that need priority in supporting their capacities for risk reduction. The following are some of the provisions on targeted work to improve opportunities for both the economic and social advancement of women and girls, focusing on mitigating the impact of the outbreak.

• To improve women’s participation in market development and access to markets during this time, LMS will facilitate their access and linkage to information on cash transfers, to ensure basic income, of which women have control and promote the recovery of local markets while advocating for delivery mechanisms that are designed and implemented with due consideration to the safety and needs of women and the vulnerable in mind.

• To improve women’s participation and decision-making power, LMS will continue to promote the socio-economic empowerment of women within the frameworks of strengthened institutions, systems and governance, by encouraging and strengthening women’s voices, participation and leadership particularly within the platforms that seek to address the pandemic outbreak, including planning for recovery efforts.

• Considering that women and men farmers generally have different, yet complementary, responsibilities for agricultural production and food security; LMS will continue to advocate for and facilitate linkage to economic support measures that support sectors, businesses and value chains that employ women and the marginalized in the community, while liaising with governmental and financial institutions, to support, promote and encourage financial services that meet the needs of women during and beyond the pandemic.

Capacity Building for Improved Gender Integration

To ensure LMS continues to systematically mainstream the gender transformative approaches into the ongoing interventions, the Director Gender Youth and Inclusion, participated in several webinar sessions and virtual partnership meetings, both for capacity building to enhance the gender integration efforts during the COVID-19, as well as an opportunity for reinforcing institutional capacities for long term gender mainstreaming in the face of pandemics. These sessions focused mainly on the following,

• Exploring the impacts of the pandemic on women’s economic empowerment

• Identifying the possible solutions including using data to mitigate these impacts.

• Addressing financial inclusion in the face of COVID-19

Improving Service Delivery Through Assessments, Desk Reviews and technical Assistance

To continue improving women’s participation and decision-making power, LMS commenced a desk review on women’s participation and leadership in cooperatives towards promoting the socio-economic empowerment of women within the frameworks of strengthened institutions, systems, and governance, to ensure sustainability. This is in recognition of the fact that cooperatives in Kenya have had a key role in creating the necessary capacity of fighting poverty and promoting equity, while also facilitating the mobilization of savings and investments through the provision of affordable loans, resulting in a huge impact in financial deepening among women.

LMS conducted a Rapid Survey on the impact of COVID-19 on businesses in Northern Kenya, with key gender considerations integrated, to ensure a better understanding of the perceived gender disparities and the likely suitable solutions. The key highlights from the rapid survey indicate the following,

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• The businesses that were interviewed in this survey show a near parity distribution of both genders. Women however

play a critical role in the value chains represented by the businesses. The LMS grants participating in the livestock value chain-both livestock trade and milk processing benefit significantly from women’s input.

• Since most MSMEs in Northern Kenya largely depend on local supply chain networks of women, the overall effects of COVID-19 on businesses are adversely affecting women producers and aggregators in the various value chains.

• Women businesses are also reported to be the first ones to suffer capital loss as women must feed families, therefore, reducing the enterprise capital base during the pandemic

• Government interventions at the national level are not gender-specific and therefore women-owned MSMEs are likely not to benefit from the stimuli packages designed for all businesses.

LMS equally supported the Turkana County government on their journey to developing a county gender policy, by providing technical support in reviewing the draft gender policy. This policy once completed will provide the county with the framework to conceptualize, design, implement, and monitor gender integration efforts across the county programs and departments. Further technical support was also provided in reviewing the Turkana County Chamber of Commerce Strategic Plan (2020-2022), to ensure gender integration and social inclusion considerations are streamlined. The implementation of this strategic plan on completion will help facilitate gender equality and social inclusion in businesses across the county.

AA1 PROGRESS ON ENVIRONMENTAL MITIGATION

AND MONITORING An environmental assessment was carried out for projects identified in five counties (Turkana, Wajir, Marsabit, Isiolo, and Garissa). Thereafter, Environment Reform Forms (ERF), Environmental Review Report (ERR), and Environmental Mitigation and Monitoring Plan (EMMP) were drafted. Furthermore, Environmental and social impact assessment (ESIA) for large grants was executed and reports submitted to the National Environmental Management Authority for review and issuance of EIA license to permit construction works.

Monitoring activities during the construction phase were halted due to COVID-19 pandemic and restriction of movement to counties to prevent the risk of infection and transmission of COVID-19. The limitation was managed by engaging county teams in providing data and information for monitoring and reporting. A data/information form was designed and provided to the CPM for data collection. Virtual meetings and site pictures were used in the monitoring process. Meanwhile, no major changes were made on projects under construction in all counties.

i. Status and progress of Large grants in the five counties

All five counties have 36 large grants identified for support. So far 16 ERFs, ERR & EMMP have been, submitted, cleared, and approved by USAID. Seven have been submitted awaiting review, clearance, and approval. Currently, two are being drafted whilst 11 field environmental assessment visits and activities have been planned. The table below summarizes the

status of ERFs, ERR & EMMP per county as at end of June 2020.

Status of ERF/ERR and EMMP for 36 large grants per county as at 30th June 2020

County Reviewed, Cleared and Approved Submitted Awaiting Clearance and Approval

Work in progress

Planned Field Assessment

Garissa (7 grants)

1. Kamuthe Young farmers fodder production under irrigation and conservation*

1. Sanjab Feedlot and fodder production*

1. Dahir Shafe (horticulture)

2. Frontier camel zero graze unit* 2. Perlong Trading company

2. Farmers Agri system capacity (Animal health services)

3. Filayi Bee-keeping and honey processing*

Marsabit (8 grants)

4. Loiyangalani fish cage farming at lake Turkana for Songoyo*

3. Camel Milk Value Addition (Alive and Young Skin Care)

4. Jirime poultry production.

3. Marsabit camel butchery

5. JeyJey dairy farm* 4. Moyale camel milk dairy cooperative society limited.

6. Moyale Animal Feed Ltd*

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County Reviewed, Cleared and Approved Submitted Awaiting Clearance and Approval

Work in progress

Planned Field Assessment

7. Agricultural Finance Corporation (AFC). Access to credit

Wajir (9 grants)

8. Al-Maaruf- Fodder production, conservation (hay barn) *

5. Nomads nourishing Milk processing and marketing*

9. Sheikh A.A., Dokono Fodder production and conservation (Hay Barn) *

6. Danwathag farm – Dairy farming*.

10. El- Harar- Fodder production under irrigation and conservation (Haybarn) *

7. Feedlot and fodder production (Hirtis) *

11. Malaba hills (Ahmed. H.,) Beekeeping and honey processing*

8. SGT-Fodder production and conservation (Hay Barn) *

9. Wajir Milk Traders

Isiolo (7 grants)

12. Fish farming (Aquaculture) by Ecotek venture Ltd*

5. Sheep and Goats feedlot (Ghada Moji Ventures limited)

13. Dairy and Feedlot production for BDD*

6. Burat Ekeunos farmers Marketing Cooperative Society Ltd

7. Adhesi Self Help Group

8. Le Kod Cham Ltd (Animal Health)

9. Nyir Nyir Women Group

Turkana (5 grants)

14. Nagis Butchery park* 10. Integrated farming (Emperor Scorpion).

15. Marian Johns Company Ltd- Aquaponic poultry farming*

11. Digital Farmers Kenya Farm Honey aggregation

16. Victorian Foods- Turkana ice production and animal feed processing plant*

* EIA license issued by NEMA

To this point, 21 Environmental and Social Impact Assessment (ESIA) licenses have been obtained after conducting assessment and EIA reports submitted to NEMA county offices. EIA activities for 15 proposed projects have been planned (see chart). The EIAs are being conducted by EIA/A lead experts’ consultants based in the county in collaboration with LMS environmental compliance specialists (ECS).

ii. Status and Progress of 20 Small Grants under Enhancing Market Efficiency.

There are 20 small grants under enhancing market efficiency component identified in four counties apart from Garissa county. Nineteen grants ERF, ERR & EMMPs have been submitted and cleared by USAID. Only one grant from Turkana is yet to be reviewed. The table below summarizes the progress of environmental compliance.

36

15

21

36

11

2

7

16

Totals

EIA Work in Progress

EIA Licence Issued

Totals

Planned Field Assessment

Work in Progress

Submited Pending Review Clearance & Approval

Reviewed,Cleared and Approved by USAID

EIA

ER

F,E

RR

s

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During the period under review, various projects were identified, and environmental compliance conducted. It involved field visits and environmental assessment of the proposed project. Environment Reform Forms (ERF), Environmental Review Report (ERR), and Environmental Mitigation and Monitoring Plan (EMMP) were drafted and submitted to USAID for review, clearance, and approval.

County (37 grants)

Reviewed, Cleared and Approved (15)

Submitted Awaiting Clearance and Approval (7)

Work in progress (3)

Planned Field Assessment (12)

Garissa (7 grants) 17. Kamuthe Young farmers fodder production under irrigation and conservation*

10. Sanjab Feedlot and fodder production*

12. Dahir Shafe (horticulture)

18. Frontier camel zero graze unit* 1. Perlong Trading company

13. Farmers Agri system Capacity (Animal health services)

19. Filayi Bee-keeping and honey processing*

Marsabit (8 grants) 20. Loiyangalani fish cage farming at lake Turkana for Songoyo*

11. Camel Milk Value Addition (Alive and Young Skin Care)

2. Jirime poultry production (layers and broilers

14. Marsabit camel butchery

21. JeyJey dairy farm* 15. Moyale camel dairy society

22. Moyale Animal Feed Ltd*

23. Agricultural Finance Corporation (AFC). Access to credit

Wajir (9 grants) 24. Al-Maaruf- Fodder production, conservation (hay barn) *

12. Nomads nourishing Milk processing and marketing*

3. Wajir Milk Traders

25. Sheikh A.A., Dokono Fodder production and conservation (Hay Barn) *

13. Danwathag farm – Dairy farming*.

26. El- Harar- Fodder production under irrigation and conservation (Haybarn) *

14. Feedlot and fodder production (Hirtis) *

27. Malaba hills (Ahmed. H.,) Beekeeping and honey processing*

15. SGT-Fodder production and conservation (Hay Barn) *

Isiolo (7 grants) 28. Fish farming (Aquaculture) by Ecotek venture Ltd*

16. Gene plus

29. Dairy and Feedlot production for BDD*

17. Sheep and Goats feedlot (Ghada Moji Ventures limited)

18. Burat Ekeunos farmers Marketing Cooperative Society Ltd

19. Adhesi Self Help Group

20. Le Kod Cham Ltd (Animal Health)

Turkana (6 grants) 30. Nagis Butchery park* 21. Integrated farming (Emperor Scorpion).

31. Marian Johns Company Ltd- Aquaponic poultry farming*

22. Impressa Beach management Unit (Fish Drying and storage

32. Victorian Foods- Turkana ice production and animal feed processing plant*

23. Digital Farmers Kenya Farm Honey aggregation

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* So far 20 Environmental and Social Impact Assessment (ESIA) licenses have been obtained after conducting assessment and EIA reports submitted to NEMA county offices. EIA activity for 16 proposed projects has been planned. The EIAs are being conducted by EIA/A lead experts’ consultants. Submission of Filayi Family Farm Apiary EIA to NEMA Garissa's office was delayed for nine months due to a change of ownership of the project. Therefore, County Director of Environment (CDE) NEMA Garissa office requested an update of the EIA report to capture environmental and social impact issues that might have changed. The assessment and updating of the Filayi project EIA are on-going. Nourishing Nomads limited (NNL) milk processing and marketing EIA licenses were issued in April 2018. According to NEMA regulations, an EIA license is valid for 24 months from the date of issue (this indicates that the NNL EIA license shall be invalid by the end of April 2020 if no construction activities are initiated at the proposed site). In cognizant of NEMA regulations, NNL was advised to initiate construction immediately to avoid cancellation of the EIA license.

iii. 20 Small Grants under Enhancing Market Efficiency.

There are 20 small grants under the enhancing market efficiency component in all the counties. All the proposed projects have undergone environmental assessment and ERF, ERRs, and EMMPs have been drafted and submitted to USAID awaiting clearance and approvals. 17 grants have been reviewed, cleared, and approved by USAID. However, three (3) are yet to be reviewed, cleared, and approved two for Isiolo and one (1) for Turkana county) as summarized in the table below.

Status of ERF, ERR&EMMP for 20 small grants under Enhancing Market Efficiency

County Cleared and Approved Submitted pending review by USAID

Marsabit (6) 1. Purchase of milk handling equipment for Mt. Marsabit women 2. purchase of milk handling equipment for Songa women Groups 3. Purchase of fodder production and hay baling tools and equip for

(Salad Abdullahi Dida’s Hay Fam), 4. Amina Ibrahim Mohamed Pasture/Fodder Producers and Livestock

Marketing Cooperative Society Ltd 5. Tulu Pasture/Fodder Producers and Livestock

Marketing Cooperative Society Ltd 6. Purchase of tools and equipment for Moringa production in Moyale

Isiolo (6) 7. Procurement of Hatchery for local chicken production (Nabulaa Raap)

8. Procurement of Hatchery for broilers production (Nelly Poultry Farm)

9. Procurement of equipment for local chicken (Umaimma chicken World)

10. Procurement of equipment for local chicken (Kitamnae Kilimo) 11. Procurement of equipment for broilers production (Elimlim) 12. Procurement of equipment for broilers production (Nameyan)

Garissa (0) None

Wajir (4) 13. Procurement of proposed solar-powered deep freezers and butchery equipment for Nadhif

14. Procurement of proposed solar-powered deep freezers and butchery equipment for Gurai Koche

15. Procurement of solar-powered milk cooling and related equipment for Maziwa Women group

16. Procurement of solar-powered milk cooling and related equipment for Manza Milk Traders

Turkana (3) 17. Fodder Milling Machines for Owjay consulting ltd 18. Honey processing equipment for Aredena Honey 19. Milling and fortification Equipment for Etic Women group

1. Animal processing Equipment for Mchanganyo Mills

iv. Status and progress of 30 Small grants within current Livestock Market sale Yard

All counties have livestock markets established under REGAL-AG. Small and medium enterprises (SMEs) operate within some of the market stalls during market days. 30 businesses have been identified to be supported with tools of the trade-in selected livestock market sale yard stalls.

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None of the grants ERFs, ERRs, and EMMPs have been approved up to now. Environmental assessment and documentation for 13 business/grants i.e. five in Marsabit-Merille livestock market, and nine in Garissa main livestock market. While for Wajir, Turkana, and Isiolo counties grants, a consolidated ERF and ERR have been drafted. So far all have been submitted to USAID. The table below summarizes the progress of environmental reports per county.

Status of ERF, ERR&EMMP for 30 Small grants within livestock markets per county

County Submitted pending review, clearance, and approval

Marsabit (5)

Garissa (9) mmunications

nterprise

livestock sale yard

Wajir (4)

Co

nso

lid

ate

d E

RF

, E

RR

&E

MM

P

Isiolo (7) utchery

Turkana (6)

v. Small Grants REAP Status and Progress

a) In Cash grants.

Marsabit is the only county that presented seven REAP small cash grants under this component. The environmental documentation has been submitted to USAID for review, clearance, and approval as indicated in the table below.

County Reviewed, Cleared and Approved

Marsabit (7) 1. Fard Self-help Group (Posho mill) ~ Sagante Village

2. Amani Self-help Group (mobile money transfer services) ~Merille

3. Bigila Self-help Group (Grocery)~ Sagante

4. Ejer Self-help Group (Grocery)~Korr

5. Bakal Self-help Group (Grocery)~Loglogo

6. Khurkhud Self-help Group (Butchery)~Korr

7. Takuma Self-help Group (Butchery) ~Bubisa

Consolidated ERF/ERRs

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Wajir (0) None

Turkana (0) None

Isiolo (0) None

Garissa (0) None

b) EMMP for Kenya Covid-19 Stimulus Grant to REAP Businesses (BOMA under Leader Award)

Due to the COVID-19 pandemic in the country, most REAP businesses initiated by The BOMA project have been affected because of lockdown restrictions by the Ministry of health to reduce infections and transmission. The proposed Kenya Covid-19 Stimulus Grant will be implemented in five counties (see map and table below). Incomes of REAP businesses have reduced drastically leading to increased poverty. It is for this reason that The BOMA Project under Leader Award intends to support businesses with business continuation assets transfer grant in cash through Kenya Covid-19 stimulus grant Transfers to enable them to cope with the financial and market shocks caused by the COVID-19. By the end of the intervention, the following outcomes are to be achieved.

✓ Protecting 1,690 REAP businesses and participants livelihoods through business continuation asset transfers

✓ Sustainably graduate 5,070 women, supporting more than 25,350 children, out of extreme poverty

✓ Established a framework for the engagement of county governments on graduation related policies.

The table below shows the counties, groups, and the grant in Ksh.

County No. of Groups No. of Individuals per Group Amount (KSh)

Isiolo 540 1620

Marsabit 70 210

Garissa 280 840

Wajir 500 1,500

Turkana 300 900

Total 1690 5,070

An EMMP specifically for COVID-19 response activities was developed and submitted for review, clearance, and approval.

vi. Agrovets grants ERF & ERRs progress

There 24 identified agrovet identified and selected in all five counties. Work is in progress in environmental assessments and development of ERF and ERRs. The table below shows the list of agrovets per county.

County

Garissa (5 Agrovet)

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County

Marsabit (6 Agrovet)

Wajir (8 Agrovet)

Isiolo (3 Agrovet)

Turkana (2 Agrovet)

County Cleared and Approved (17) Submitted pending approval (3)

Marsabit (6) 1. Purchase of milk handling equipment for Mt. Marsabit women 2. purchase of milk handling equipment for Songa women Groups 3. Purchase of fodder production and hay baling tools and equip for

(Salad Abdullahi Dida’s Hay Fam), 4. Amina Ibrahim Mohamed Pasture/Fodder Producers and Livestock

Marketing Cooperative Society Ltd 5. Tulu Pasture/Fodder Producers and Livestock Marketing Cooperative Society

Ltd 6. Purchase of tools and equipment for Moringa production in Moyale

Isiolo (6) 1. Procurement of Hatchery for local chicken production (Nabulaa Raap) 2. Procurement of Hatchery for broilers production (Nelly Poultry Farm) 3. Procurement of equipment for local chicken (Umaimma chicken World) 4. Procurement of equipment for local chicken (Kitamnae Kilimo)

1. Procurement of equipment for broilers production (Elimlim)

2. Procurement of equipment for broilers production (Nameyan)

Garissa (0) None

Wajir (4) 1. Procurement of proposed solar-powered deep freezers and butchery equipment for Nadhif

2. Procurement of proposed solar-powered deep freezers and butchery equipment for Gurai Koche

3. Procurement of solar-powered milk cooling and related equipment for Maziwa Women group

4. Procurement of solar-powered milk cooling and related equipment for Manza Milk Traders

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County Work in progress

Turkana (4) 1. Fodder Milling Machines for Owjay consulting ltd 2. Honey processing equipment for Aredena Honey 3. Milling and fortification Equipment for Etic Women group

3. Animal processing Equipment for Mchanganyo Mills

vii. 30 Small grants within current Livestock Market sale Yard

All counties have various livestock markets established under REGAL-AG. Small and medium businesses operate within market stalls, especially during market days. 30 businesses have been identified for support with equipment and tools of the trade. None of the grants ERFs, ERRs, and EMMPs have been approved so far. Environmental assessment and documentation for 13 business/grants five in Marsabit-Merille livestock market and eight in Garissa's main livestock market have been completed and submitted for review, clearance, and approval. Environment assessment and documentation work is on-going for seven small grants within the Isiolo livestock market. Field environmental assessment for 10 grants has been planned for four in Wajir (Habaswein and Griftu livestock markets) and six in Turkana (Lodwar and Kakuma livestock markets). The table below summarizes the status and progress of environmental reports for grants/businesses per county.

Status of ERF, ERR&EMMP for 30 Small grants within livestock markets per county

County Submitted pending review, clearance, and approval

Work in progress Planned Fieldwork

Marsabit (5) 1. Lino Chudukle- Phone charging and repair

2. Samuel Lekorima-A startup Garage business

3. Hotel business for Rosemary 4. Philip Leparmarai hotel business 5. Eunice Galwaha hotel business

Isiolo (7) 1. Nyir Nyir Women Group~ Processing, packaging, and marketing of Preserved dried camel meat (Nyir Nyir).

2. Shamane Self-help group Fruit blending

Regina

Wanjira ~Hotel

Garissa (8)

Wajir (4) 1. Kush cyber and center 2. Twins planet 3. Nimcaan women group

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County Submitted pending review, clearance, and approval

Work in progress Planned Fieldwork

4. Gaza Shop Griftu

Turkana (6) 1.

viii. Small grants REAP (Cash grants)

Only Marsabit county presented seven REAP small cash grants under this component. The environmental assessment and documentation have been conducted and submitted to USAID awaiting review, clearance, and approval. Two grants have already been approved while five are pending approval as indicated in the table below.

County Reviewed, Cleared and Approved (2) ERF, ERR&EMMP submitted pending for review, clearance, and

Approval (5)

Marsabit (7) 8. Fard Saving Group ~ Sagante Village 1. Bigila Saving Group ~ Sagante

9. Amani Saving Group~Merille 2. Ejer Saving Group~Korr

3. Bakal Saving Group~Loglogo

4. Khurkhud Savings Group~Korr

5. Takuma Saving Group~Bubisa

Wajir (0) None

Turkana (0) None

Isiolo (0) None

Garissa (0) None

AA1 PROGRESS ON LINKS TO OTHER USAID PROGRAMS

LMS-AA1 participated in the USAID PREG 2.0 orientation and targeting workshops in the respective counties' PREG partners. LMS is working with Scaling the Impacts of USAID Resilience Programming Through Local Systems to deliver Public Financial Regulations training to County Directors of Finance, Budget, and Planning to ensure a thorough understanding of Public Financial Management regulations, especially for emergency programming.

AA1 PROGRESS ON J2SR

On the Journey to self-reliance, LMS team mobilized actors from various County Departments (CEC Livestock, Directors from livestock, Fisheries, Veterinary, Agriculture, Water, Planning, Health, Peace and cohesion, Gender and Education Departments and PREG partners in attending PREG 2.0 induction workshop organized by resilience and learning activity team. The workshop that also saw the attendance of USAID partners provided a platform for County officials indulgence on USAID Journey to Self-Reliance. The County teams appreciated the engagement and called on the need for the directors to be incorporated in the AA4 planned capacity building on monitoring and evaluation targeting framework to ensure efficient planning and allocation of resources for development from the County Government. The County team and PREG team will be working together in developing a joint work plan.

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AA1 SUSTAINABILITY AND EXIT STRATEGY

To facilitate more competitive, resilient, and inclusive livestock and related market systems to leverage end-market opportunities, while ensuring inclusion and poverty reduction, LMS seeks to work with existing and/or past investments i.e. Pastoralists producers’ organizations e.g. Cooperatives and Livestock Market Associations to consolidate and create sustainable impact.

LMS recognizes that unlocking the systemic constraints through Cooperatives play a huge role in strengthening local communities and presenting new business opportunities. LMS will leverage on the existing cooperatives that show greater opportunities to scale and trigger the formation of new cooperatives (where they are non -existence) so that they will become sustainable and continue to serve their members and communities. Over time, many pastoral producers, and livestock market actors will become active participants in the livestock system. Increasingly men, women, and youth earn higher incomes and make more household investments and move out of poverty in the long-term.

Key insights: LMS will partner with each county department of cooperatives and agriculture/pastoral economy to roll-out a pastoral cooperatives’ development capacity-building support for primary producer pastoralists (owners/herders of livestock), and those cooperatives organized up to terminal markets.

AA1 LESSONS LEARNED

During the reporting period, reduced market activities due to the stringent ministry of health COVID-19 preventive directives continued to present challenges to participants which greatly impacted business operations as they depended heavily on markets resulting in reduced sales and household income. From the survey commissioned to assess the impact of COVID-19 on Micro Small and Medium Enterprises (MSMEs) in Northern Kenya; ninety-three percent of the businesses interviewed indicated that the measures put in place to curb the spread of COVID 19 have negatively affected their operations.

The major effects of the pandemic to the surveyed businesses include;

• 77% of the businesses reported a reduction in the volume of sales,

• 52% reported disruption of the transport logistics, and

• 43% of the business reported an increase in the cost of doing business due to the higher cost of transport.

Therefore, the pandemic has had negatively impacted the financial health of businesses which recorded declining sales, low productivity due to interrupted supply chains and reduced working hours due to the national curfew and restrictions of movements. The pandemic caused psychological effects on customers, suppliers, and staff fearing to contract the disease and therefore keeping off from the surveyed businesses.

SUBSEQUENT QUARTER’S AA1 WORK PLAN

Planned Actions from Previous Quarter

Actual Status this Quarter Explanations for Deviations

Operationalization of the Livestock markets:

Ensure the livestock markets and businesses within the markets are operational/open where feasible/safe-by providing business stimulus grants, or at a minimum ensuring local supply/demand- procurement of goods and services: All these markets have been operating at various

In Turkana- LMS with support to KNCCI -& County official ensured Lodwar and Kakuma Livestock markets are operational and safe for traders while in Garissa, a collaborative effort between LMS & County’s Department of Livestock, Public Health & Trade have ensured three main livestock markets ( Garissa Main, Modogashe and Balambala) have resumed business. In Isiolo County, Isiolo Main livestock market

This is an ongoing activity; that will promote solutions that support the market's supply chains to remain functional, without compromising health and safety.

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capacities at the same time adhering to the health and safety standards.

registered increased livestock trade as Oldonyiro, Eskot & Merti and other smaller feeder livestock markets (Kipsing, Ngaremara, Barambate& Biliqo) were initially closed but have resumed operations. In Wajir County, Griftu & Habaswein Livestock markets have continued to operate, as well as Merille, Korr, Illaut & Merille livestock markets have been operating in Marsabit county.

BDS support to LMS & REGAL -AG supported business (MSMEs)

To continue operations- through business coaching- Via SRC & STTA- promote solutions that support commercial supply chains to remain functional, without compromising health and safety.

Review of business plans and financial projections for Wajir Milk Traders, Moyale Camel Dairy Cooperative Society Limited- which deals with Camel milk aggregation and processing as well as the development of business record keeping templates. Support to carry out Impacts of COVID-19 to businesses in the LMS Counties. The major effects of the pandemic to the surveyed businesses include; 77% of the businesses reported a reduction in the volume of sales, 52% reported disruption of the transport logistics, and 43% of the business reported an increase in the cost of doing business due to the higher cost of transport.

Support “critical market systems” (e.g. working to identify and overcome weaknesses in trader capacity or supporting shifts to digital payment mechanisms for vendors).

Facilitate rebuilding of markets - focusing initially on local supply chains and linkages (e.g. facilitating information flows, brokering new market relationships).

LMS Support to Cooperative initiative Working with eight selected cooperatives/ producer organizations/Livestock marketing/ SACCOs- A platform for Inclusion (Women & Youth), access to extension services, Livestock/ livestock products aggregation/ processing.

In Isiolo, LMS facilitated the formation of Walqabana Dairy Camel Marketing Co-operative Society Ltd made up of three groups i.e. Adhesi Self Help Group, Kulamawe, and Anesitu Camel Milk traders with 48 members. Supported Isiolo Livestock Marketing SACOO to recruit a manager. In Garissa, LMS has mapped out 24 cooperatives to be formed along four value chains of Camel Milk (10), Honey (six), Beef & Small Stock four), and Livestock feeds (four).

LMS will work with cooperatives to improve their effectiveness and efficiency in their business operations. The major focus will be laid on institutional strengthening and governance, business practices that have implications on pastoral producers and service providers to offer consistent and high-quality access to critical inputs, services, and information.

Joint activities with County Governments:

Capacity strengthening (Virtual training) to County officials (TOTs) in the cooperative department; Garissa County Revolving Fund management/Operations -to disperse funds, Turkana County Government- Public Service Board & Operationalization of the Kerio Breeding Centre

Build back better - use this crisis to pivot towards making markets more inclusive, efficient (e.g. skills training for female traders as part of recovery packages).

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Provide embedded policy support at FCDC in the areas of Community Lands and Spatial Planning; Sales Yard Bills/Revenue Sharing Arrangement Livestock Markets Mgt Policy (Garissa); Yard Sales Bill (Garissa and Wajir); Facilitation of Marsabit livestock Markets Bills and Trade Bill.

In Isiolo, the livestock bill and rangeland management bill get ratified by the cabinet and now awaits approval by the County Assembly, In Garissa review of the GCRF bill was returned by the County Assembly for review.LMS, through FCDC, completed public education on community land rights, reforms, and sensitization on the process of community land registration in Isiolo, Marsabit, and Turkana counties. Community representatives and elected officials at the county and national levels participated in sensitization workshops.

This is ongoing, and the progress will be reported in the subsequent period.

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