From rot to revenue: How farmers are redefining waste into wealth

As the world grapples with the realities of resource depletion, pollution and climate change, a new way of thinking about production and consumption is taking root; the circular economy.

Unlike the traditional “take–make–dispose” approach that drains natural resources and leaves behind mountains of waste, the circular model focuses on keeping materials in use for as long as possible. It’s about designing waste out of the system, finding value in by-products, and regenerating rather than depleting what the planet provides.

In Kenya, this shift is already underway, and two of the country’s most familiar sectors, beef and bananas, are quietly proving that circularity is more than a global buzzword. It’s a local solution that can create jobs, restore ecosystems, and build economic resilience in farming communities.

When most people think about livestock, the first thing that comes to mind is meat. Yet, beyond the steak and stew is some value chain rich with untapped potential. From hides and skins that can be transformed into leather, to horns and hooves that can be crafted into ornaments, the livestock industry presents multiple opportunities for value addition. Even livestock manure — often dismissed as waste — is emerging as a powerful resource for organic fertiliser and clean energy production. 

In Laikipia County, these ideas are no longer theoretical. The region, well known for its vibrant red meat sector, is embracing a new mindset: One that sees livestock as a source of multiple income streams rather than a single product.

County officials say this shift has been accelerated through technical support from partners such as the United Nations Industrial Development Organisation (UNIDO), working jointly with the Food and Agriculture Organisation (FAO) and the International Organisation for Migration (IOM). Through training and technology transfer, farmers are learning to process livestock by-products locally and turn them into marketable goods. 

According to Mary Gichuru, the county’s Chief Officer for Livestock and Fisheries, farmers who previously sold raw manure at a throwaway price are now producing organic fertiliser within the county. “This not only cuts transport costs but also increases the value of what farmers produce. It’s an income source that many had not considered before,” she explains. 

Laikipia is also developing a County Aggregation and Industrial Park, a facility designed to help farmers process, package and market value-added livestock products. Officials hope the park will serve as a hub for small and medium enterprises that specialise in products like organic fertiliser, leather and animal feed made from processing residues.

“This initiative is about creating full value from livestock,” says Gichuru. “We want our farmers to see every part of the animal — from the meat to the manure — as an opportunity for income and innovation.”

Hundreds of kilometres away in Nyamira County, a similar transformation is unfolding, this time, in the banana value chain. For years, farmers struggled with low prices and massive post-harvest losses, with upto 40 per cent of bananas going to waste. The discarded stems, peels, and leaves often ended up rotting in farms or rivers.

Today, that waste is powering a new wave of rural enterprises. With training and equipment provided under the Circular Economy in County Aggregation and Industrial Parks (CECAIPs) programme, farmer groups are learning to turn what was once waste into valuable products.

The Wefahson Banana Cooperative Society, which brings together more than a thousand smallholder farmers, is among the early adopters. From their collection centre, the cooperative now extracts fibre from banana stems, which is processed into hair braids, mats and baskets. The liquid residue from the fibre extraction process is fermented into organic foliar fertiliser, while peels are turned into banana vinegar and compost manure.

“Before this project, most of the stems were left in the fields to rot,” says Aska Nyakwara, a member of the cooperative. “Now, everything from the peel to the stem has a use. We have reduced post-harvest waste to about 16 per cent and increased overall product utilization by more than half.”

The impact is tangible. Many cooperative members have diversified their income, and young people are finding new roles in processing, marketing, and innovation. The cooperative has also secured export markets for banana fibre in Morocco, where demand continues to outstrip supply.

For a county like Nyamira, where banana farming supports thousands of households, the shift towards circular practices is reshaping the local economy. According to Benard Maina, the County Executive for Trade, Tourism, Industry and Cooperatives, the initiative has helped tackle multiple challenges at once — from waste management to unemployment.

“By introducing circular economy principles, we’ve been able to create new jobs while reducing the environmental footprint of banana farming,” he says. “The county has also developed an investment prospectus to attract partners and investors interested in expanding banana-based enterprises.”

The new model is particularly appealing to the youth, who are taking up roles in product design, machinery operation, and marketing. In a region where agriculture was often viewed as a low-income activity, circular enterprises are offering a fresh perspective — one that blends creativity with sustainability.

At the heart of these efforts is the CECAIPs programme, funded by the Government of Norway through the Multi-Partner Trust Fund (MPTF). The programme aims to mainstream circular economy practices within the newly established County Aggregation and Industrial Parks across Kenya.

According to Linet Luvai, UNIDO’s Deputy Country Representative in Kenya, the goal is to strengthen community resilience to climate change while supporting a transition to carbon-neutral agro-enterprises. “By integrating circular principles into county industrial parks, we are building systems that create value locally and reduce environmental impact,” she notes. “The lessons from Laikipia and Nyamira will inform similar initiatives in other value chains such as dairy, coffee, and fisheries.”

The collaboration also extends to policy development. Together with the Government of Kenya, UNIDO and its partners are working on a National Circular Economy Framework that will provide guidance for industries, counties, and communities seeking to adopt sustainable production systems. “This is about building a Kenya that thrives on regeneration — where nothing goes to waste and every product has a purpose,” says Linet.

Circularity is increasingly being recognized as a pathway toward achieving Kenya’s green growth ambitions. Beyond its environmental benefits, it offers a practical route to industrial diversification, job creation, and climate resilience. In Laikipia, farmers are already seeing improved soils from the use of organic manure, while in Nyamira, banana-based fertilizer is boosting yields in crops like coffee and beans.

Experts say that while the circular economy may sound complex, it is grounded in simple, community-driven actions: using waste as a resource, extending product life, and designing business models that give back to the environment. For Kenya’s rural farmers, this approach is proving that sustainability does not have to come at the expense of profitability. It can, in fact, be the engine of growth.

The journey towards a fully circular agricultural economy is still unfolding, but the progress in Laikipia and Nyamira offers a glimpse of what’s possible when innovation meets local wisdom. With continued support from government, private investors, and development partners, Kenya’s counties can turn what was once agricultural waste into a thriving green economy — one that sustains livelihoods, regenerates nature, and secures the country’s food systems for generations to come.

As global conversations on climate and sustainability continue, Kenya’s story stands out as a powerful reminder that transformation begins where the ground meets the hand — on the farm.