Livestock
The livestock sector is a significant pillar of Kenya's economy, contributing approximately 12% to the national Gross Domestic Product (GDP) and accounting for about 42% of the agricultural GDP. It employs close to 50% of the agricultural labour force and supports the livelihoods of over 6 million pastoralists and agro-pastoralists.
Why Invest in Kenya Livestock Sector
Investing in Kenya's livestock sector presents several opportunities, driven by strong demand, government support, and growing export potential. Here are key reasons why one should consider investing in this sector:
Raw Materials Endowment
Kenya’s livestock population (11th largest globally), with >21Mn cattle and >58Mn goats and sheep, presents a substantial resource base for the growth of its leather industry
Regional & International Trade Opportunities
- Kenya is strategically positioned as a gateway to East and Central Africa, providing access to regional markets.
- The African Continental Free Trade Area (AfCFTA) and trade agreements with Middle Eastern countries enhance export potential.
Favorable Climate for Livestock Farming
- Kenya’s vast arid and semi-arid lands (ASALs), which make up 80% of the country’s landmass, are suitable for livestock farming.
- The country’s diverse ecological zones support different types of livestock, including cattle, goats, sheep, and poultry.
Sector Expertise
Already established leather sector with 10+ operating tanneries, 20+ manufacturers
Investment Landscape
Despite its significance, the livestock sector has attracted limited private investment. Between 2015 and 2023, only about 10% of the over $500 million invested in agriculture was directed towards livestock-related ventures. Challenges such as disease outbreaks, weather-related risks, and the informality of the sector have contributed to this underinvestment.
Government Initiatives and Investments
Recognizing the sector's potential, the Kenyan government has initiated several measures to bolster livestock production:
National Livestock Vaccination Program:
In response to outbreaks of diseases like Foot and Mouth Disease (FMD) and Peste des Petits Ruminants (PPR), the government launched a nationwide vaccination campaign targeting 22 million cattle and 50 million sheep and goats. This initiative aims to enhance livestock health, ensure food security, and open up lucrative export markets.
Feed Production Enhancement:
To address challenges in livestock feed availability, the government is implementing strategies such as drafting a Livestock Bill, regulating feeds, and establishing a modern Feed Resource Centre equipped with advanced laboratories. These efforts aim to ensure the safety and integrity of animal feeds.
Establishment of Feedlots:
Plans are underway to establish 450 fenced livestock feedlots across 31 counties, projected to increase annual red meat production by 108,500 metric tons, valued at KSh54 billion (approximately US$415 million). This initiative also aims to enhance meat exports and improve livestock breeds through a countrywide breed improvement program.
Investment Opportunities
Invest in Kenya, and together, let's build a future of shared prosperity. Join us in unlocking the full potential of Kenya – a land of opportunity, innovation, and progress.
