Development of agro-pastoral and pastoral entrepreneurship in arid and semi-arid lands (ASAL) of East Africa is constrained by lack of access to financial services, limited technology, and low capacity to engage in high value crop production. This is exacerbated by high risks associated with providing these services to pastoralist communities in ASAL areas in Kenya. The communities’ preference for ethical financial products and services has exacerbated this exclusion. This article presents a new intervention area that addresses these challenges. It argues that bundling ethical financial services with agricultural technology and capacity building positively affects entrepreneurship and income generation among pastoral communities that are transitioning into crop production. This article is based on the Islamic Relief Kenya (IRK) project implementation experience and participatory action and quantitative research conducted with randomly selected members of 180 Alpha Group Savings and Loans Associations (AGSLAs).

Central Bank of Kenya, Kenya National Bureau of Statistics, and FSD Kenya (2016) The 2016 FinAccess Household Survey on Financial Inclusion [online], Nairobi, Kenya: FSD Kenya <http://fsdkenya.org/publication/finaccess2016/> [accessed October 2018].

Denison, J., Dube, S.V., Masiya, T.C., Moyo, T., Murata, C., Mpyana, J., van Averbeke, L.L. and van Averbeke, W. (2016) Smallholder Irrigation Entrepreneurial Development: Pathways and Livelihoods in Two Districts in Limpopo Province [online], Water Research Commission <http://www.wrc.org.za/mdocs-posts/2179-1-16/> [accessed October 2018].

Donovan, J., Stoian, D. and Poe, K. (2017) ‘Value chain development in Nicaragua: prevailing approaches and tools used for design and implementation’, Enterprise Development and Microfinance 28(1-2): 10–27 <http://dx.doi.org/10.3362/1755-1986.16-00035>.

El-Zoghbi, M. and Tarazi, M. (2013) Trends in Sharia Compliant Financial Inclusion, Focus Note No. 84, Washington, DC: Consultative Group to Assist the Poor (CGAP).

Financial Action Task Force (FATF) (2013) FATF Guidance: Anti-Money Laundering and Terrorist Financing Measures and Financial Inclusion [pdf], Paris, France: FATF <http://www.fatf-gafi.org/media/fatf/documents/reports/AML_CFT_Measures_and_Financial_Inclusion_2013.pdf> [accessed June 2019].

Griffin, R. and Ebert, R. (2006) Business, 8th edn, Upper Saddle River, NJ: Prentice Hall.

Herrington, M. and Kew, P. (2017) The Global Entrepreneurship Monitor (GEM): Global Report 2016/17 [online] <https://www.gemconsortium.org/report> [accessed October 2018].

Karim, N., Tarazi, M. and Reille, X. (2008) Islamic Microfinance: An Emerging Market Niche, Focus Note No. 49, Washington, DC: Consultative Group to Assist the Poor (CGAP).

Kenya National Bureau of Statistics (2018) Basic Report on Wellbeing in Kenya: Based on the 2015/16 Kenya Integrated Household Budget Survey (KIHBS), Nairobi, Kenya: Kenya National Bureau of Statistics.

Kirkbride, M. and Grahn, R. (2008) Survival of the Fittest [pdf], Oxfam Briefing Paper, Oxford: Oxfam International <https://www-cdn.oxfam.org/s3fs-public/file_attachments/bp116-pastoralism-climate-change-eafrica-0808_14.pdf> [accessed June 2019].

Naziri, D., Mayanja, S., Ssemwanga, J. and Donovan, J. (2017) ‘Approaches and tools for inclusive value chain development: lessons from Uganda for improved impact’, Enterprise Development and Microfinance 28(4): 323–41 <http://dx.doi.org/10.3362/1755-1986.00036>.

Norell, D., Janoch, E., Kaganzi, E., Tolat, M., Lynn, M.L. and Riley, E. (2017) ‘Value chain development with the extremely poor: evidence and lessons from Care, Save the Children, and World Vision’, Enterprise Development and Microfinance 28(1-2): 44–62 <http://dx.doi.org/10.3362/1755-1986.16-00024>.

Passarelli, S., Mekonnen, D., Bryan, E. and Ringler, C. (2018) ‘Evaluating the pathways from small-scale irrigation to dietary diversity: evidence from Ethiopia and Tanzania’, Food Security 10(4): 981–97 <https://doi.org/10.1007/s12571-018-0812-5>.

Smith, W., Scott, L. and Shepherd, A. (2015) Financial Inclusion Policy Guide: Enhanced Resilience through Savings and Insurance via Linkages and Digital Technology, policy guide no. 6, London: Chronic Poverty Advisory Network (CpAn).

Townsend, R., Ronchi, L., Brett, C. and Moses, G. (2018) Future of Food: Maximizing Finance for Development in Agricultural Value Chains [online], Washington, DC: World Bank <https://openknowledge.worldbank.org/handle/10986/29686> [accessed October 2018].

Walkerman, S., Bowles, M., Cartland, T. and Ross, S. (2015) ‘Bringing together push and pull through local entrepreneurs’, Enterprise Development and Microfinance 26(1): 23–33 <http://dx.doi.org/10.3362/1755-1986.2015.004>.

Central Bank of Kenya, Kenya National Bureau of Statistics, and FSD Kenya (2016) The 2016 FinAccess Household Survey on Financial Inclusion [online], Nairobi, Kenya: FSD Kenya <http://fsdkenya.org/publication/finaccess2016/> [accessed October 2018].

Denison, J., Dube, S.V., Masiya, T.C., Moyo, T., Murata, C., Mpyana, J., van Averbeke, L.L. and van Averbeke, W. (2016) Smallholder Irrigation Entrepreneurial Development: Pathways and Livelihoods in Two Districts in Limpopo Province [online], Water Research Commission <http://www.wrc.org.za/mdocs-posts/2179-1-16/> [accessed October 2018].

Donovan, J., Stoian, D. and Poe, K. (2017) ‘Value chain development in Nicaragua: prevailing approaches and tools used for design and implementation’, Enterprise Development and Microfinance 28(1-2): 10–27 <http://dx.doi.org/10.3362/1755-1986.16-00035>.

El-Zoghbi, M. and Tarazi, M. (2013) Trends in Sharia Compliant Financial Inclusion, Focus Note No. 84, Washington, DC: Consultative Group to Assist the Poor (CGAP).

Financial Action Task Force (FATF) (2013) FATF Guidance: Anti-Money Laundering and Terrorist Financing Measures and Financial Inclusion [pdf], Paris, France: FATF <http://www.fatf-gafi.org/media/fatf/documents/reports/AML_CFT_Measures_and_Financial_Inclusion_2013.pdf> [accessed June 2019].

Griffin, R. and Ebert, R. (2006) Business, 8th edn, Upper Saddle River, NJ: Prentice Hall.

Herrington, M. and Kew, P. (2017) The Global Entrepreneurship Monitor (GEM): Global Report 2016/17 [online] <https://www.gemconsortium.org/report> [accessed October 2018].

Karim, N., Tarazi, M. and Reille, X. (2008) Islamic Microfinance: An Emerging Market Niche, Focus Note No. 49, Washington, DC: Consultative Group to Assist the Poor (CGAP).

Kenya National Bureau of Statistics (2018) Basic Report on Wellbeing in Kenya: Based on the 2015/16 Kenya Integrated Household Budget Survey (KIHBS), Nairobi, Kenya: Kenya National Bureau of Statistics.

Kirkbride, M. and Grahn, R. (2008) Survival of the Fittest [pdf], Oxfam Briefing Paper, Oxford: Oxfam International <https://www-cdn.oxfam.org/s3fs-public/file_attachments/bp116-pastoralism-climate-change-eafrica-0808_14.pdf> [accessed June 2019].

Naziri, D., Mayanja, S., Ssemwanga, J. and Donovan, J. (2017) ‘Approaches and tools for inclusive value chain development: lessons from Uganda for improved impact’, Enterprise Development and Microfinance 28(4): 323–41 <http://dx.doi.org/10.3362/1755-1986.00036>.

Norell, D., Janoch, E., Kaganzi, E., Tolat, M., Lynn, M.L. and Riley, E. (2017) ‘Value chain development with the extremely poor: evidence and lessons from Care, Save the Children, and World Vision’, Enterprise Development and Microfinance 28(1-2): 44–62 <http://dx.doi.org/10.3362/1755-1986.16-00024>.

Passarelli, S., Mekonnen, D., Bryan, E. and Ringler, C. (2018) ‘Evaluating the pathways from small-scale irrigation to dietary diversity: evidence from Ethiopia and Tanzania’, Food Security 10(4): 981–97 <https://doi.org/10.1007/s12571-018-0812-5>.

Smith, W., Scott, L. and Shepherd, A. (2015) Financial Inclusion Policy Guide: Enhanced Resilience through Savings and Insurance via Linkages and Digital Technology, policy guide no. 6, London: Chronic Poverty Advisory Network (CpAn).

Townsend, R., Ronchi, L., Brett, C. and Moses, G. (2018) Future of Food: Maximizing Finance for Development in Agricultural Value Chains [online], Washington, DC: World Bank <https://openknowledge.worldbank.org/handle/10986/29686> [accessed October 2018].

Walkerman, S., Bowles, M., Cartland, T. and Ross, S. (2015) ‘Bringing together push and pull through local entrepreneurs’, Enterprise Development and Microfinance 26(1): 23–33 <http://dx.doi.org/10.3362/1755-1986.2015.004>.

Central Bank of Kenya, Kenya National Bureau of Statistics, and FSD Kenya (2016) The 2016 FinAccess Household Survey on Financial Inclusion [online], Nairobi, Kenya: FSD Kenya <http://fsdkenya.org/publication/finaccess2016/> [accessed October 2018].

Denison, J., Dube, S.V., Masiya, T.C., Moyo, T., Murata, C., Mpyana, J., van Averbeke, L.L. and van Averbeke, W. (2016) Smallholder Irrigation Entrepreneurial Development: Pathways and Livelihoods in Two Districts in Limpopo Province [online], Water Research Commission <http://www.wrc.org.za/mdocs-posts/2179-1-16/> [accessed October 2018].

Donovan, J., Stoian, D. and Poe, K. (2017) ‘Value chain development in Nicaragua: prevailing approaches and tools used for design and implementation’, Enterprise Development and Microfinance 28(1-2): 10–27 <http://dx.doi.org/10.3362/1755-1986.16-00035>.

El-Zoghbi, M. and Tarazi, M. (2013) Trends in Sharia Compliant Financial Inclusion, Focus Note No. 84, Washington, DC: Consultative Group to Assist the Poor (CGAP).

Financial Action Task Force (FATF) (2013) FATF Guidance: Anti-Money Laundering and Terrorist Financing Measures and Financial Inclusion [pdf], Paris, France: FATF <http://www.fatf-gafi.org/media/fatf/documents/reports/AML_CFT_Measures_and_Financial_Inclusion_2013.pdf> [accessed June 2019].

Griffin, R. and Ebert, R. (2006) Business, 8th edn, Upper Saddle River, NJ: Prentice Hall.

Herrington, M. and Kew, P. (2017) The Global Entrepreneurship Monitor (GEM): Global Report 2016/17 [online] <https://www.gemconsortium.org/report> [accessed October 2018].

Karim, N., Tarazi, M. and Reille, X. (2008) Islamic Microfinance: An Emerging Market Niche, Focus Note No. 49, Washington, DC: Consultative Group to Assist the Poor (CGAP).

Kenya National Bureau of Statistics (2018) Basic Report on Wellbeing in Kenya: Based on the 2015/16 Kenya Integrated Household Budget Survey (KIHBS), Nairobi, Kenya: Kenya National Bureau of Statistics.

Kirkbride, M. and Grahn, R. (2008) Survival of the Fittest [pdf], Oxfam Briefing Paper, Oxford: Oxfam International <https://www-cdn.oxfam.org/s3fs-public/file_attachments/bp116-pastoralism-climate-change-eafrica-0808_14.pdf> [accessed June 2019].

Naziri, D., Mayanja, S., Ssemwanga, J. and Donovan, J. (2017) ‘Approaches and tools for inclusive value chain development: lessons from Uganda for improved impact’, Enterprise Development and Microfinance 28(4): 323–41 <http://dx.doi.org/10.3362/1755-1986.00036>.

Norell, D., Janoch, E., Kaganzi, E., Tolat, M., Lynn, M.L. and Riley, E. (2017) ‘Value chain development with the extremely poor: evidence and lessons from Care, Save the Children, and World Vision’, Enterprise Development and Microfinance 28(1-2): 44–62 <http://dx.doi.org/10.3362/1755-1986.16-00024>.

Passarelli, S., Mekonnen, D., Bryan, E. and Ringler, C. (2018) ‘Evaluating the pathways from small-scale irrigation to dietary diversity: evidence from Ethiopia and Tanzania’, Food Security 10(4): 981–97 <https://doi.org/10.1007/s12571-018-0812-5>.

Smith, W., Scott, L. and Shepherd, A. (2015) Financial Inclusion Policy Guide: Enhanced Resilience through Savings and Insurance via Linkages and Digital Technology, policy guide no. 6, London: Chronic Poverty Advisory Network (CpAn).

Townsend, R., Ronchi, L., Brett, C. and Moses, G. (2018) Future of Food: Maximizing Finance for Development in Agricultural Value Chains [online], Washington, DC: World Bank <https://openknowledge.worldbank.org/handle/10986/29686> [accessed October 2018].

Walkerman, S., Bowles, M., Cartland, T. and Ross, S. (2015) ‘Bringing together push and pull through local entrepreneurs’, Enterprise Development and Microfinance 26(1): 23–33 <http://dx.doi.org/10.3362/1755-1986.2015.004>.

Central Bank of Kenya, Kenya National Bureau of Statistics, and FSD Kenya (2016) The 2016 FinAccess Household Survey on Financial Inclusion [online], Nairobi, Kenya: FSD Kenya <http://fsdkenya.org/publication/finaccess2016/> [accessed October 2018].

Denison, J., Dube, S.V., Masiya, T.C., Moyo, T., Murata, C., Mpyana, J., van Averbeke, L.L. and van Averbeke, W. (2016) Smallholder Irrigation Entrepreneurial Development: Pathways and Livelihoods in Two Districts in Limpopo Province [online], Water Research Commission <http://www.wrc.org.za/mdocs-posts/2179-1-16/> [accessed October 2018].

Donovan, J., Stoian, D. and Poe, K. (2017) ‘Value chain development in Nicaragua: prevailing approaches and tools used for design and implementation’, Enterprise Development and Microfinance 28(1-2): 10–27 <http://dx.doi.org/10.3362/1755-1986.16-00035>.

El-Zoghbi, M. and Tarazi, M. (2013) Trends in Sharia Compliant Financial Inclusion, Focus Note No. 84, Washington, DC: Consultative Group to Assist the Poor (CGAP).

Financial Action Task Force (FATF) (2013) FATF Guidance: Anti-Money Laundering and Terrorist Financing Measures and Financial Inclusion [pdf], Paris, France: FATF <http://www.fatf-gafi.org/media/fatf/documents/reports/AML_CFT_Measures_and_Financial_Inclusion_2013.pdf> [accessed June 2019].

Griffin, R. and Ebert, R. (2006) Business, 8th edn, Upper Saddle River, NJ: Prentice Hall.

Herrington, M. and Kew, P. (2017) The Global Entrepreneurship Monitor (GEM): Global Report 2016/17 [online] <https://www.gemconsortium.org/report> [accessed October 2018].

Karim, N., Tarazi, M. and Reille, X. (2008) Islamic Microfinance: An Emerging Market Niche, Focus Note No. 49, Washington, DC: Consultative Group to Assist the Poor (CGAP).

Kenya National Bureau of Statistics (2018) Basic Report on Wellbeing in Kenya: Based on the 2015/16 Kenya Integrated Household Budget Survey (KIHBS), Nairobi, Kenya: Kenya National Bureau of Statistics.

Kirkbride, M. and Grahn, R. (2008) Survival of the Fittest [pdf], Oxfam Briefing Paper, Oxford: Oxfam International <https://www-cdn.oxfam.org/s3fs-public/file_attachments/bp116-pastoralism-climate-change-eafrica-0808_14.pdf> [accessed June 2019].

Naziri, D., Mayanja, S., Ssemwanga, J. and Donovan, J. (2017) ‘Approaches and tools for inclusive value chain development: lessons from Uganda for improved impact’, Enterprise Development and Microfinance 28(4): 323–41 <http://dx.doi.org/10.3362/1755-1986.00036>.

Norell, D., Janoch, E., Kaganzi, E., Tolat, M., Lynn, M.L. and Riley, E. (2017) ‘Value chain development with the extremely poor: evidence and lessons from Care, Save the Children, and World Vision’, Enterprise Development and Microfinance 28(1-2): 44–62 <http://dx.doi.org/10.3362/1755-1986.16-00024>.

Passarelli, S., Mekonnen, D., Bryan, E. and Ringler, C. (2018) ‘Evaluating the pathways from small-scale irrigation to dietary diversity: evidence from Ethiopia and Tanzania’, Food Security 10(4): 981–97 <https://doi.org/10.1007/s12571-018-0812-5>.

Smith, W., Scott, L. and Shepherd, A. (2015) Financial Inclusion Policy Guide: Enhanced Resilience through Savings and Insurance via Linkages and Digital Technology, policy guide no. 6, London: Chronic Poverty Advisory Network (CpAn).

Townsend, R., Ronchi, L., Brett, C. and Moses, G. (2018) Future of Food: Maximizing Finance for Development in Agricultural Value Chains [online], Washington, DC: World Bank <https://openknowledge.worldbank.org/handle/10986/29686> [accessed October 2018].

Walkerman, S., Bowles, M., Cartland, T. and Ross, S. (2015) ‘Bringing together push and pull through local entrepreneurs’, Enterprise Development and Microfinance 26(1): 23–33 <http://dx.doi.org/10.3362/1755-1986.2015.004>.