Finance barriers hinder women-led dairy enterprises

Margaret Riungu on her farm in Meru, on November 21, 2019. [File, Standard]

Thousands of women driving Kenya’s dairy industry remain locked out of formal financing due to limited ownership of land and productive assets.

This, in turn, hinders investment and growth in one of the country’s most important agricultural value chains, a new report has found.

The Kenya National Women in Dairy Report 2026 shows that 65 per cent of women dairy farmers identify lack of collateral as the biggest obstacle to accessing credit, despite their central role in milk production and household food security.

The study, commissioned by the Kenya National Farmers’ Federation (KENAFF), covered five leading dairy counties – Nakuru, Meru, Nyandarua, Uasin Gishu, and Kiambu.

According to the report, only 23 per cent of surveyed women own titled land while just 19 per cent have documented ownership of cattle, limiting their ability to secure loans from banks and other formal lenders.

Nancy Rapando, lead expert at the Africa Centre for Climate, Agri-Food and Nature (AfriCCLAN), said conventional lending requirements continue to exclude women despite their strong repayment records and growing contribution to the dairy economy.

“Rather than requesting land as collateral, financial institutions should explore alternatives such as registered livestock, insurance records and cooperative milk delivery histories to assess creditworthiness,” she said.

“Women are actively producing, earning and managing dairy enterprises, but many lack formal ownership documents required by lenders. We need financing models that reflect the realities of rural dairy farming.”

The report highlights a striking contradiction within the sector. While women account for the majority of labour in dairy farming and comprise 86 per cent of cooperative membership in surveyed areas, most remain excluded from ownership of key productive assets and leadership positions.

“Women increasingly play a very critical role in the dairy sector, something that is not well appreciated,” said KENAFF CEO Daniel Mwendah.

Researchers found that women control an average of 82 per cent of dairy income within their households and that dairy earnings contribute significantly to improved nutrition, healthcare and food security.

However, limited access to finance prevents many from investing in improved breeds, feeds, veterinary services and climate-resilient production systems.

The study identifies high upfront investment costs, low awareness of financial products, institutional reluctance to lend and digital literacy gaps as additional barriers preventing women from accessing capital.

Nakuru County emerged as a notable example of how targeted support can improve women’s financial inclusion.

It recorded the highest level of female land ownership among the five counties surveyed, a factor researchers linked to stronger empowerment outcomes and better access to finance.

Rapando noted that supportive county policies and specialised financing windows have helped increase women’s participation in the dairy economy.

The report recommends that banks, Saccos and cooperatives adopt more flexible lending models by recognising livestock, milk delivery records and group guarantees as acceptable forms of collateral.

It also calls for the creation of a national Women in Dairy Credit Guarantee Fund and reforms that would formally recognise livestock as collateral under Kenya’s financial system.

Kenya’s dairy sector contributes about 14 per cent of agricultural GDP and supports more than 1.8 million smallholder households. 

Researchers argue that unlocking women’s access to finance could significantly boost productivity, strengthen food security and accelerate inclusive growth across the value chain.