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Beekeeping Business and Sustainability Model - 1

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SUPPORTING

COMMUNITIES IN
KENYA’S ASALS TO
BUILD RESILIENT
LIVELIHOODS

PRIVATE SECTOR CONTRIBUTION TO

SUSTAINABLE BEEKEEPING VALUE CHAIN

IN KENYA
Livestock Production Climate Resilient Water infrastructure

Poultry Production Micro-irrigation

Fish Farming Beekeeping

BUILDING SUSTAINABLE &


RESILIENT LIVELIHOODS
BEEKEEPING VALUE CHAIN
Achievements
• Inputs supply: Over 10,000 beehives procured &
Distributed. Worth Approx. Kes 60 million
(USD451,128)
• Job Creation: Approx. 4,000 beekeepers
reached
• Economic Empowerment: Quantities and
income generated not clear
• Enhancing Inclusion: The project has enhanced
youth and women inclusion through adoption
of modern beekeeping technology
Programme Background • Peace and cohesion: Contributed to cross
border business & reduced conflict. Increased
✓ Sustainable food systems and resilience livelihoods ecosystem-based climate adaptation.
programme started in 2019.

✓ Targeting 11 arid counties (Turkana, Baringo,


Samburu, Isiolo, Marsabit, Wajir, Mandera, Garissa,
Tana River, Kitui & Makueni) Challenges
✓ Also supporting cross border intervention between ✓ Inadequate extension support
Kenya and Uganda (Turkana – Karamoja regions
respectively) ✓ High dependency

✓ Technical support received from respective ✓ Low access to inputs


county governments
✓ Limited access to market

✓ Cross border trade barriers


Private Sector Engagement
✓ Partnership Engagement with THE HIVE Ltd started in
April 2022 (Turkana West)
Inputs supply: Supplied 450 modern beehives with
technical support from the HIVE Ltd.
Job Creation: 45 beekeepers identified & additional 1,400
farmers mobilized with local beehives (58% women). 18
youth employed (F-6 & M-12) by the hubs.
Stimulate Investment: 2 honey processing hubs
established by the private sector company.
Economic Empowerment: Over 3.8 tonnes of honey
harvested and sold to the HIVE Ltd – 1st harvest (May -
August). An additional 9.2 tonnes ( September 2022 –
April 2023) > 13 tonnes in total.
✓ Beekeepers received over USD10,000 in payment for
honey supplied
Peace and cohesion: Contributed to cross border business
& reduced conflict. Increased ecosystem-based climate
adaptation
Planned Expansion:
• Increase number of beekeepers to approx. 10,000 by
2027
• Scale-up the partnership to 9 arid counties (Turkana,
Baringo, Samburu, Isiolo, Marsabit, Wajir, Mandera,
Garissa & Tana River)
• Implement a sustainable beekeeping model through
introduction of blended financing.
Link
farmers to
Facilitate
capacity
Sustainable Beekeeping Model
private strengthening
sector activities

WFP Develop a
Purchase & product
distribute suitable for

Financial
beehives & beekeeping
production
accessories cycle

Institution
Disburse cash
as requested
by groups

Provide
land for Form
setting up beekeepers’
of apiaries group & VSLA

Participate in
capacity
Beekeepers strengthening
activities
Purchase
Provide all bee
THE HIVE technical
support to
products
from
beekeepe beekeepe
Ltd rs rs

National /
(Private
County Sector Aggregat
e honey
Link
beekeepe
rs to
and other
financial
Government bee
products
institutions

Provide
extension Provide alternative market
support
Other for farmers

Policy &
Regulatory
Markets
Framework

Link
beekeepers
to
government
Blended Financing Models

Step 1- Year one


➢ WFP & County government to support in formation of beekeeper
groups and introduce village savings and lending associations
(VSLAs).
➢ WFP & THE HIVE Ltd to identify a financial institution (FI) with or
Step 2- Year two
ready to develop a product (s) favorable to beekeepers.
➢ The HIVE Ltd, FI & beekeeper groups to sign an agreement on how
➢ WFP, The HIVE Ltd & beekeeper groups to sign an agreement on
the loan will be executed. Including that;
how the loan will be executed. Including that; • Through their respective groups, beekeepers will raise a request through the
• Through their respective groups, beekeepers will raise a request through the HIVE Ltd of all items needed.
HIVE Ltd of all the items needed. • Beekeeper groups to raise 40% of the total cost of all items required through
• Beekeeper groups to raise 20% of the total cost of all items required through the HIVE Ltd.
the HIVE Ltd. • Through the HIVE Ltd, the FI to provide beekeeper groups a loan equivalent
• WFP will support in procurement of 40% of the requested items (This will be a to the balance (60%) in form of materials through the HIVE Ltd.
one-off support). • The HIVE Ltd will deliver the loan to beekeepers in form of materials as
• Through the HIVE Ltd, the FI to provide beekeeper groups a loan equivalent requested.
to the balance (40%) in form of materials through the HIVE Ltd. • Beekeepers will be required to sale their produce to the HIVE Ltd.
• The HIVE Ltd will deliver the loan to beekeepers in form of materials as • The HIVE Ltd, WFP, government and beekeeper groups to tabulate a
requested. percentage to be deducted from sales made.
• Beekeepers will be required to sale their produce to the HIVE Ltd until such a • The HIVE Ltd to deduct the agreed percentage of the beekeepers’ income to
time that the loan is fully re-paid. support in repaying the loan.
• The HIVE Ltd, WFP, government and beekeeper groups to tabulate a • The deduction to continue until the loan is fully repaid and based on the
percentage to be deducted from sales made to aid in repayment of the loan. loaning period.
• The HIVE Ltd to deduct the agreed percentage off the beekeepers’ income to
➢ The HIVE Ltd to remit or repay the loan to the financial institution
support in repaying the loan.
• The deduction to continue until the loan is fully repaid and based on the
loaning period
➢ The HIVE Ltd to remit or repay the loan to the financial institution
on behalf of the community.

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