Livestock make a significant contribution to the livelihoods of coconut-based households and offer substantial scope for poverty reduction in coconut growing communities. A study was conducted on poverty reduction at Nvuma, a coconut growing community. It also examined the contribution of livestock in the livelihoods of coconut-based households and the economic and technical constraints faced by the farmers. A baseline survey was conducted to identify the needs, aspirations, opportunities and constraints in relation to the livestock kept. The project supported the farmers with training, technical advice and microcredit facility. Livestock contributed to the livelihoods of the participating households through increased income, insurance savings, improved nutrition and job creation. Knowledge of the farmer participants increased, particularly regarding the nutritional needs of livestock and disease and pest control. The farmers value their livestock first as an insurance savings, from which unexpected high expenses, like family medical bills and children school fees are paid. The microcredit provided a minimum financial base for the farmers to establish a foundation stock. It was found that provision of veterinary services is essential for the success of poor household’s livestock enterprises. Support from government agencies such as the District Assemblies, NGOs and other development partners is recommended.