Livestock production remains the primary source of livelihood in the arid and semi-arid lands (ASALs) of Kenya’s lower eastern region. Despite sustained investments by governments and non-governmental organizations, the economic returns from livestock development projects have remained modest, and poverty levels persist. This study evaluated the impact of a Livestock Improvement Project (LIP) on the subjective wellbeing of agro-pastoral households in Mwala Sub-County, Machakos County. Specifically, the study assessed household subjective wellbeing and examined its contributions to livestock performance, access to agricultural credit, capacity building in livestock management, and participation in collective action. A cross-sectional study was conducted to collect household information using a structured questionnaire. A sample of 285 households was selected through stratified random sampling from 1,100 project beneficiaries organized into 45 farmer groups. Data were collected using a structured questionnaire and analyzed using descriptive and inferential statistics at a 95% confidence level (p ≤ 0.05). Household subjective wellbeing was relatively high (M = 7.3, SD = 1.2) on a 10-point scale (1=low and 10 high). Regression results indicated that subjective wellbeing was positively and significantly influenced by livestock performance (β = 0.944, p < 0.001), access to agricultural credit (β = 0.748, p < 0.001), capacity building (β = 0.878, p < 0.001), and participation in collective action (β = 0.834, p < 0.001). The study concludes that the LIP had a positive impact on household wellbeing and recommends that future livestock interventions in ASALs integrate capacity building, access to credit, and collective action to enhance sustainable livelihood outcomes. The study contributes to livestock development literature by applying the subjective wellbeing perspective to project impact evaluation.