Kenya and Italy are stepping up cooperation in agriculture through a Sh1.5 billion initiative targeting dairy and horticulture value chains in Nakuru and Kilifi counties, with the programme expected to directly benefit about 20,800 smallholder farmers, livestock keepers, cooperatives, agri-food enterprises and young agricultural service providers. Known as AGRIPACT, the 42-month Kenya-Lombardy partnership is designed to make agricultural value chains more resilient, inclusive and circular. The programme will focus on improving productivity, reducing post-harvest losses, strengthening producer organisations, expanding value addition and connecting farmers and agricultural enterprises to better markets. The initiative has a total value of more than €10.1 million, equivalent to roughly Sh1.5 billion. Almost €9 million is being provided through Italian development cooperation via the Italian Agency for Development Cooperation (AICS), while about €1.2 million is being co-financed by the Lombardy Region and other partners. AGRIPACT targets dairy and horticulture The programme will cover both Nakuru and Kilifi, although the targeted value chains differ by county. In Nakuru, AGRIPACT will focus on the dairy and horticulture sectors. In Kilifi, the programme will support horticultural value chains, including activities related to fruit processing and drying. The beneficiaries are expected to include small-scale farmers and livestock keepers, cooperatives and producer organisations, micro, small and medium-sized agri-food enterprises, as well as young people providing agricultural services. The programme is being implemented through a partnership involving the Lombardy Region, Italian development cooperation actors and organisations working in Kenya, alongside the United Nations Industrial Development Organization (UNIDO). It was approved in July 2026 by Italy's Joint Committee for Development Cooperation. From primary production to stronger value chains A central feature of AGRIPACT is its focus on challenges that occur beyond the farm gate. Farmers can increase production and still struggle to earn more if they face high post-harvest losses, weak aggregation systems, limited processing capacity or unreliable markets. The programme therefore aims to strengthen several parts of the value chain rather than concentrating only on farm-level production. The targeted areas include: Improving agricultural productivity Reducing post-harvest losses Strengthening cooperatives and producer organisations Supporting agro-processing and value addition Improving access to markets Expanding technical skills and knowledge Supporting agricultural enterprises Promoting circular-economy approaches Creating opportunities for young agricultural service providers During recent discussions between Kenyan and Italian officials, agricultural aggregation centres and post-harvest technologies were identified as important components of the programme. For horticultural farmers, improvements in harvesting, handling, storage, processing and marketing can be particularly important because the commercial value of fresh produce can decline rapidly when it is poorly handled or reaches markets late. Lombardy to provide agricultural and cooperative expertise The Lombardy Region is expected to contribute technical expertise in areas including agricultural production, cooperative enterprise development, manufacturing and agro-processing. Raffaele Cattaneo, Lombardy's Undersecretary for International and European Relations, said the region would make its expertise available over the 42-month implementation period in response to needs identified by farmers and cooperatives. The partnership therefore goes beyond financial support. It is intended to facilitate the transfer of knowledge, technologies and practical approaches that can be adapted to local agricultural conditions. This includes training, technical capacity building and support for agricultural enterprises and producer organisations. Cooperatives expected to play an important role Cooperatives and other producer organisations are central to the programme because they can help individual farmers participate more effectively in commercial value chains. Smallholder farmers often produce relatively small quantities individually. Organised aggregation can make it easier to coordinate collection, meet buyer requirements, access services and negotiate with processors or other market actors. The AGRIPACT approach also places emphasis on improving the organisation and governance of producer groups. This could be important for ensuring that investments in processing, aggregation and market access are supported by organisations capable of managing them sustainably. The emphasis on cooperatives also comes as Kenya continues to pursue reforms aimed at strengthening cooperative enterprises and their contribution to economic development. Reducing post-harvest losses Post-harvest management is another major area of focus. Losses can occur during harvesting, sorting, transportation, storage, processing and marketing. In horticulture, poor handling can result in physical damage, quality deterioration and reduced market value, while inadequate processing capacity can limit opportunities for farmers to sell products in more durable or higher-value forms. AGRIPACT's planned interventions include post-harvest technologies, improved organisation of collection and greater use of processing and value addition. In Kilifi, for example, fruit processing and drying are among the areas identified for support. For farmers, the potential significance is that value addition can create additional marketing options rather than leaving producers dependent entirely on immediate sales of fresh produce. Focus on climate resilience and circular production AGRIPACT also seeks to make agricultural value chains more resilient to environmental and economic pressures. The partnership describes its target value chains as resilient, inclusive and circular, with circular-economy approaches intended to reduce waste and make better use of agricultural resources. Climate resilience is particularly relevant to farmers operating under increasingly variable production conditions. However, resilience in an agricultural value chain extends beyond farm production. It also involves the ability of processors, cooperatives, traders, service providers and markets to continue functioning when production or supply conditions change. This broader approach is reflected in AGRIPACT's focus on the entire chain from production and aggregation to processing and markets. Youth and agricultural enterprises included The programme also seeks to create opportunities beyond farming itself. Young agricultural service providers and agri-food MSMEs are among the groups expected to benefit. This creates scope for opportunities in areas such as agricultural services, processing, logistics, technology, aggregation and other activities supporting food value chains. For counties such as Nakuru, where agriculture is closely connected to processing, trade and rural enterprise, strengthening these supporting businesses can be as important as improving production at farm level. A stronger value chain requires businesses capable of supplying inputs and services, collecting and processing produce, maintaining quality and connecting farmers with buyers. Part of wider Kenya-Italy cooperation AGRIPACT forms part of broader cooperation between Kenya and Italy under the Italian government's Mattei Plan for Africa, which includes agriculture, food security, skills development, enterprise development and sustainable economic growth. The recent Italian delegation's visit to Kenya included meetings with Kenyan government officials, agricultural stakeholders, cooperatives and businesses involved in the targeted value chains. The discussions have focused on identifying practical challenges facing farmers and agricultural enterprises and determining how the partnership can respond through training, technology transfer and technical expertise. What AGRIPACT could mean for farmers For farmers in the targeted counties, the significance of AGRIPACT will ultimately depend on how effectively the planned interventions reach production areas and become functioning services, markets and business opportunities. The programme's focus on aggregation, post-harvest management, processing, cooperative development and market access means that its potential impact extends beyond increasing farm yields. For a dairy farmer, stronger collection, processing and market systems can influence the value received for milk. For a horticultural grower, better handling, aggregation, processing and access to buyers can affect both market opportunities and the amount of produce that reaches consumers in saleable condition. The involvement of young agricultural service providers and agri-food MSMEs could also help create a broader rural business ecosystem around these value chains. A longer-term approach to agricultural development AGRIPACT will run for 42 months, giving the partnership more than three years to move from planning and capacity building to implementation and learning. The challenge will be to ensure that the knowledge, infrastructure, business relationships and producer organisations supported during the programme remain functional beyond the project period. That will require strong participation from farmers, cooperatives, county governments, businesses, technical institutions and other value-chain actors. For Nakuru and Kilifi, the programme represents a shift from looking at agricultural development purely in terms of production towards strengthening the systems that determine how agricultural products move from farms to consumers and how much value farmers and rural enterprises retain along the way. If successfully implemented, AGRIPACT will provide a platform for farmers and agricultural businesses to strengthen productivity, reduce losses, develop processing opportunities and build more reliable connections with markets across the targeted dairy and horticulture value chains.

Kenya-Italy Sh1.5 Billion AGRIPACT to Strengthen Dairy and Horticulture Value Chains in Nakuru and Kilifi

ByEditor

Kenya and Italy are stepping up cooperation in agriculture through a Sh1.5 billion initiative targeting dairy and horticulture value chains in Nakuru and Kilifi counties, with the programme expected to directly benefit about 20,800 smallholder farmers, livestock keepers, cooperatives, agri-food enterprises and young agricultural service providers.

Known as AGRIPACT, the 42-month Kenya-Lombardy partnership is designed to make agricultural value chains more resilient, inclusive and circular. The programme will focus on improving productivity, reducing post-harvest losses, strengthening producer organisations, expanding value addition and connecting farmers and agricultural enterprises to better markets.

The initiative has a total value of more than €10.1 million, equivalent to roughly Sh1.5 billion. Almost €9 million is being provided through Italian development cooperation via the Italian Agency for Development Cooperation (AICS), while about €1.2 million is being co-financed by the Lombardy Region and other partners.

AGRIPACT targets dairy and horticulture

The programme will cover both Nakuru and Kilifi, although the targeted value chains differ by county.

In Nakuru, AGRIPACT will focus on the dairy and horticulture sectors. In Kilifi, the programme will support horticultural value chains, including activities related to fruit processing and drying.

The beneficiaries are expected to include small-scale farmers and livestock keepers, cooperatives and producer organisations, micro, small and medium-sized agri-food enterprises, as well as young people providing agricultural services.

The programme is being implemented through a partnership involving the Lombardy Region, Italian development cooperation actors and organisations working in Kenya, alongside the United Nations Industrial Development Organization (UNIDO). It was approved in July 2026 by Italy’s Joint Committee for Development Cooperation.

From primary production to stronger value chains

A central feature of AGRIPACT is its focus on challenges that occur beyond the farm gate.

Farmers can increase production and still struggle to earn more if they face high post-harvest losses, weak aggregation systems, limited processing capacity or unreliable markets. The programme therefore aims to strengthen several parts of the value chain rather than concentrating only on farm-level production.

The targeted areas include:

  • Improving agricultural productivity
  • Reducing post-harvest losses
  • Strengthening cooperatives and producer organisations
  • Supporting agro-processing and value addition
  • Improving access to markets
  • Expanding technical skills and knowledge
  • Supporting agricultural enterprises
  • Promoting circular-economy approaches
  • Creating opportunities for young agricultural service providers

During recent discussions between Kenyan and Italian officials, agricultural aggregation centres and post-harvest technologies were identified as important components of the programme.

For horticultural farmers, improvements in harvesting, handling, storage, processing and marketing can be particularly important because the commercial value of fresh produce can decline rapidly when it is poorly handled or reaches markets late.

Lombardy to provide agricultural and cooperative expertise

The Lombardy Region is expected to contribute technical expertise in areas including agricultural production, cooperative enterprise development, manufacturing and agro-processing.

Raffaele Cattaneo, Lombardy’s Undersecretary for International and European Relations, said the region would make its expertise available over the 42-month implementation period in response to needs identified by farmers and cooperatives.

The partnership therefore goes beyond financial support. It is intended to facilitate the transfer of knowledge, technologies and practical approaches that can be adapted to local agricultural conditions.

This includes training, technical capacity building and support for agricultural enterprises and producer organisations.

Cooperatives expected to play an important role

Cooperatives and other producer organisations are central to the programme because they can help individual farmers participate more effectively in commercial value chains.

Smallholder farmers often produce relatively small quantities individually. Organised aggregation can make it easier to coordinate collection, meet buyer requirements, access services and negotiate with processors or other market actors.

The AGRIPACT approach also places emphasis on improving the organisation and governance of producer groups. This could be important for ensuring that investments in processing, aggregation and market access are supported by organisations capable of managing them sustainably.

The emphasis on cooperatives also comes as Kenya continues to pursue reforms aimed at strengthening cooperative enterprises and their contribution to economic development.

Reducing post-harvest losses

Post-harvest management is another major area of focus.

Losses can occur during harvesting, sorting, transportation, storage, processing and marketing. In horticulture, poor handling can result in physical damage, quality deterioration and reduced market value, while inadequate processing capacity can limit opportunities for farmers to sell products in more durable or higher-value forms.

AGRIPACT’s planned interventions include post-harvest technologies, improved organisation of collection and greater use of processing and value addition. In Kilifi, for example, fruit processing and drying are among the areas identified for support.

For farmers, the potential significance is that value addition can create additional marketing options rather than leaving producers dependent entirely on immediate sales of fresh produce.

Focus on climate resilience and circular production

AGRIPACT also seeks to make agricultural value chains more resilient to environmental and economic pressures.

The partnership describes its target value chains as resilient, inclusive and circular, with circular-economy approaches intended to reduce waste and make better use of agricultural resources.

Climate resilience is particularly relevant to farmers operating under increasingly variable production conditions. However, resilience in an agricultural value chain extends beyond farm production. It also involves the ability of processors, cooperatives, traders, service providers and markets to continue functioning when production or supply conditions change.

This broader approach is reflected in AGRIPACT’s focus on the entire chain from production and aggregation to processing and markets.

Youth and agricultural enterprises included

The programme also seeks to create opportunities beyond farming itself.

Young agricultural service providers and agri-food MSMEs are among the groups expected to benefit. This creates scope for opportunities in areas such as agricultural services, processing, logistics, technology, aggregation and other activities supporting food value chains.

For counties such as Nakuru, where agriculture is closely connected to processing, trade and rural enterprise, strengthening these supporting businesses can be as important as improving production at farm level.

A stronger value chain requires businesses capable of supplying inputs and services, collecting and processing produce, maintaining quality and connecting farmers with buyers.

Part of wider Kenya-Italy cooperation

AGRIPACT forms part of broader cooperation between Kenya and Italy under the Italian government’s Mattei Plan for Africa, which includes agriculture, food security, skills development, enterprise development and sustainable economic growth.

The recent Italian delegation’s visit to Kenya included meetings with Kenyan government officials, agricultural stakeholders, cooperatives and businesses involved in the targeted value chains.

The discussions have focused on identifying practical challenges facing farmers and agricultural enterprises and determining how the partnership can respond through training, technology transfer and technical expertise.

What AGRIPACT could mean for farmers

For farmers in the targeted counties, the significance of AGRIPACT will ultimately depend on how effectively the planned interventions reach production areas and become functioning services, markets and business opportunities.

The programme’s focus on aggregation, post-harvest management, processing, cooperative development and market access means that its potential impact extends beyond increasing farm yields.

For a dairy farmer, stronger collection, processing and market systems can influence the value received for milk. For a horticultural grower, better handling, aggregation, processing and access to buyers can affect both market opportunities and the amount of produce that reaches consumers in saleable condition.

The involvement of young agricultural service providers and agri-food MSMEs could also help create a broader rural business ecosystem around these value chains.

A longer-term approach to agricultural development

AGRIPACT will run for 42 months, giving the partnership more than three years to move from planning and capacity building to implementation and learning.

The challenge will be to ensure that the knowledge, infrastructure, business relationships and producer organisations supported during the programme remain functional beyond the project period.

That will require strong participation from farmers, cooperatives, county governments, businesses, technical institutions and other value-chain actors.

For Nakuru and Kilifi, the programme represents a shift from looking at agricultural development purely in terms of production towards strengthening the systems that determine how agricultural products move from farms to consumers and how much value farmers and rural enterprises retain along the way.

If successfully implemented, AGRIPACT will provide a platform for farmers and agricultural businesses to strengthen productivity, reduce losses, develop processing opportunities and build more reliable connections with markets across the targeted dairy and horticulture value chains.

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