Livestock feed prices surge as Kenya struggles with imported inputs

KENYA – Kenya’s livestock sector is facing mounting pressure as a severe shortage of raw materials drives animal feed prices sharply upward, raising concerns over food security and the cost of basic commodities such as milk, eggs and meat.

According to the Association of Kenya Feed Manufacturers, the cost of animal feed has surged by 45% in recent months, largely due to the scarcity of key inputs such as maize germ, soybean meal, canola, and sunflower cake. These ingredients are critical to feed production but remain heavily reliant on imports from countries such as Malawi, Zambia, Uganda, and even Eastern Europe.

Maize, which accounts for about 40% of standard feed formulations, has seen prices rise by 45% since early last year. Although Kenya produces maize locally, production has not kept pace with demand. National consumption stands at approximately 4 million metric tonnes annually, while local production averages 3.5 million metric tonnes, leaving a deficit that must be covered through imports.

In addition to maize, millers depend on soybean and other oilseed meals imported from countries such as Malawi, Zambia and Uganda. Rendered ingredients are sourced even further afield, including Eastern Europe. Imports originating from outside the COMESA attract a 10% duty, placing Kenyan manufacturers at a competitive disadvantage compared to producers in countries that source raw materials domestically.

As a result, the cost of a 70-kilogram bag of dairy or layer mash has risen to an average of Sh3,500. Feed accounts for up to 70% of total livestock production costs, so any increase directly affects farm-gate prices. Farmers are already feeling the strain, with some shifting from formulated feeds to cheaper alternatives such as Napier grass. However, this often leads to reduced milk yields and lower overall productivity.

Stakeholders caution that without government intervention, the situation could escalate into a broader food security crisis. The rising cost of production is ultimately transferred to consumers through higher prices for animal protein products.

Glimmer of hope 

Amid these challenges, investment in local manufacturing continues. Dutch feed company De Heus recently opened a Sh3 billion livestock feed factory in Kenya with an annual production capacity of 240,000 tonnes. 

Speaking at the launch, Managing Director Wiehan Visagie said feed supply has, for too long, felt like a gamble for farmers, and that the company aims to streamline supply through automated, high-quality production.

Similarly, during the launch of a five-tonne-per-hour extruder by Tunga Nutrition, Managing Director Harrison Juma noted that, unless the government waives import duties on key raw materials, millers will continue to struggle with high input costs passed on to consumers.

On the policy front, the Kenya Marine and Fisheries Research Institute (KMFRI)  has mapped all 47 counties to identify suitable value chains for local production through the Agricultural Sector Development Support Programme Phase Two (ASDSP II). 

Director General Dr Paul Orina said the goal is to strengthen domestic raw material supply. In the interim, industry players argue that reducing import taxes could offer immediate relief while long-term production capacity is developed.

While new investments and mapping initiatives offer a roadmap for reform, meaningful change will take time. 

In the short term, farmers and consumers may continue to bear the burden of elevated costs. However, with coordinated action between government and industry, the current crisis could become a turning point toward a more resilient and self-sufficient feed sector.

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