APMD strengthens coordination and investment in Kenya’s livestock value chain

KENYA – The African Pastoral Markets Development (APMD) Platform is stepping up efforts to transform Kenya’s livestock sector by fostering stronger coordination, investment, and private-sector integration across the value chain. 

Over two days in Naivasha, APMD brought together feedlot operators, meat processors, financial institutions, and policymakers to address long-standing challenges and explore practical solutions for a more structured, profitable livestock economy.

Representing the African Union Inter-African Bureau for Animal Resources (AU-IBAR) Director, Mr. John Oppong, the organization’s Economics, Markets and Trade Coordinator, said the forum was part of APMD’s broader mission to “create a more connected, transparent and market-oriented livestock economy that links production with processing, finance with opportunity, and policy with enterprise.”

Although livestock contributes roughly 12% of Kenya’s total GDP and nearly 40% of its agricultural GDP, the sector remains largely informal. 

Over 80% of beef produced by pastoral communities flows through unstructured markets and low-value processing systems, limiting profitability and competitiveness.

At the Naivasha meeting, feedlot operators raised concerns about high feed costs, limited access to affordable financing, and logistical bottlenecks that drive up production costs. 

They also called for the adoption of quality-based pricing mechanisms to reward producers of higher-grade cattle and for processors to make timely payments to improve cash flow in the intensive livestock production system.

Feed costs were highlighted as a major constraint to profitability. 

“Without support to manage the cost of feed, the entire feedlot system struggles to compete,” said Abdulrahim, echoing a widely shared sentiment among the participants.

 Stakeholders proposed targeted subsidies for livestock feed and inputs to stabilize production costs and encourage investment in feedlot operations.

Financial inclusion and export potential

Financial service providers also presented emerging solutions to improve access to capital and insurance for livestock producers. 

Equity Bank showcased its “Livestock Ecosystems” initiative, which leverages asset-based lending, digital financial services, and bancassurance models to help de-risk investments in the sector. 

These instruments, the bank noted, could unlock much-needed financing for pastoral producers who often lack conventional collateral but hold significant livestock assets.

Despite its structural challenges, Kenya’s meat export sector has shown promising growth. In 2023, exports rose by 39% to KES 19 billion (US$146 million), with key markets including the United Arab Emirates, Saudi Arabia, Bahrain, and Qatar. 

However, sustaining this growth will require stronger coordination, better infrastructure, expanded cold-chain capacity, and adherence to international quality and safety standards.

Building partnerships for transformation

By convening this forum, APMD reaffirmed its commitment to facilitating dialogue and partnership between public and private sector actors, while advancing evidence-based policymaking to guide investment decisions. 

The Naivasha engagement is expected to yield new business linkages between feedlot operators and processors, as well as policy recommendations to strengthen coordination in Kenya’s livestock markets.

A forthcoming market insight report will capture these outcomes and provide actionable guidance to stakeholders seeking to build a more resilient, efficient, and inclusive livestock sector in Kenya.

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