Hay production in arid and semi-arid areas of Kenya is a flagship program under drought risk reduction and climate change adaptation strategies like the Kenya Climate Smart Agricultural Project, the Agricultural Sector Transformation and Growth Strategy, and the Range Management and Pastoralism Strategy. In Kajiado County, the roll-out of the hay production flagship program began in 2018 without precise data on the financial viability of producing hay as a private enterprise. To inform the implementation of the hay flagship project, planners need a cost-benefit analysis of the hay enterprise and the challenges around hay production. The study undertook a literature review, a knowledge, attitude, and practice survey on 354 pastoralists, and a cost-benefit analysis of 23 hay-growing farms in Kajiado Central, Ololiloi and Mashuru sub-counties. The findings showed that proximity to hay farms and availability of hay resulted in livestock keepers increasing the hay fed to their livestock from 23 % to 62 % during the droughts of 2015 and 2017, respectively. However, 35 % of the hay farms having less than 90 acres and 8 % of the hay farms producing less than 4,250 hay bales (15 kgs per bag) were not profitable. Despite only two farms of over 400 acres accounting for 73 % of all hay production, they need more tangible support from the government. Furthermore, farms owning machinery and irrigation facilities were unprofitable, while rain-fed farms hiring machinery were profitable after three years. Other factors affecting profitability were cropping practices, herder-farmer conflicts, hazards like fires, and capital expenditure like building hay stores and purchasing irrigation equipment. Decision-makers need to address the inadequate seasonal hay market worsened by pastoralists' hay-buying behaviour, which was 86 % influenced by animal deaths at the peak of the drought. This paper recommends actionable policy frameworks to establish public-private-producer partnerships, promote stable markets, set up strategic hay reserves, promote low-technology production methods, and train commercial hay producers. In addition, policies should encourage pastoralists to diversify their livestock feeding options during droughts and use hay vouchers for drought response. Furthermore, the policy frameworks should be expanded to provide cash subsidies to hay farmers, address the high costs of machinery and promote drought-based insurance policies. Key words: hay, drought, cost-benefit analysis, climate-smart agriculture, pastoralists, livestock
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