High cost of animal feeds a hindrance to food security

Kenya’s per capita consumption of meat stands at 1.7 kilogrammes, which is extremely low, compared to the global recommended 12 kilograms.

Equally, by global standards, the per capita consumption of eggs is 180 per person. Locally, we consume, on average, just above 30 eggs per person annually, while Nigeria leads in Africa at about 69 eggs per capita.

The question then begs: why is Kenya lagging behind other jurisdictions, compromising our nutritional requirements? A key reason for this reality is the fact that these products are costly and inaccessible to many consumers. Low production compounds this problem.

For instance, the average cost of a tray of exotic eggs increased by 60 percent in the four years to 2025, while the price of indigenous eggs went up from Sh540 to Sh750 within the same period. Equally, a kilogramme of processed chicken meat in Kenya costs about Sh516, double the price in South Africa.

These high prices are aligned with the law of supply and demand. In 2023, Kenya produced 110,454 tonnes of meat, against a demand of 648,000 tonnes. On the other hand, the country produced 7.2 million tonnes of eggs, way below the demand of 9.7 million tonnes.

The government has prioritised animal feeds as a critical component for livestock farming and a key enabler for achieving food security and nutrition. Despite concerted efforts to lower feed costs, prices have risen consistently since 2021.

A recent Animal Feeds Market Inquiry undertaken by the Competition Authority of Kenya assessed the market interactions, structure, pricing dynamics and other factors that may affect competition along animal feeds value chains. Notably, the study highlighted a number of causative factors that are competition-related and regulatory in nature.

First, the supra-competitive prices of inputs offered to animal feed manufacturers in Kenya are higher than the case would, be under competitive market conditions for critical inputs, such as soymeal cake, sunflower cake and cotton seed cake. These are the main sources of protein for animal feeds and account for 70 percent of the input cost by value.

Since Kenya heavily relies on imported raw materials, major suppliers impose higher prices on Kenyan feed manufacturers, while mopping any excess supplies. The surplus is re-exported, sustaining an artificial input shortage locally.

Consequently, small-scale feed producers exit the market due to their financial inability to compete with large players. The big manufacturers enjoy economies of scale and have integrated their operations in the supply of other inputs such as maize and wheat bran, which are by-products of maize flour and wheat flour milling components, respectively.

Secondly, the supply of inputs is controlled by brokers whose mode of operations are opaque. The brokerage nature of the inputs market creates unpredictability in input pricing, which are determined per delivery.

Thirdly, the adverse effects of seasonality of inputs supply in a sector that is heavily dependent on maize imports from neighbouring countries like Tanzania and Uganda. Non-tariff barriers and restrictions on maize imports to Kenya during periods of shortages exert pressure on the already high input prices.

Lastly, imposition of cess and levies on agricultural produce further impacts adversely on feed prices, especially given that these chargers are not harmonised, resulting in double taxation of feed produce during their transportation across the counties.

In order to contain the increasing cost of animal feeds, there is need for enhanced cooperation between national and regional agencies, including competition regulators.

In addition, to extinguish the cross-border competition concerns of supra-competitive pricing of inputs, there is need to interrogate the possibility of concerted conduct by input suppliers in feeds value chain across jurisdictions.

Further, ongoing discussions to eliminate non-tariff barriers in the East Africa Community should be fast-tracked.

Locally, counties are urged to develop frameworks and modalities for exempting animal feed produce from various levies, or harmonise the units of measurements for imposing any charges, if they must be charged.

Revisiting our story, if the above recommendations are implemented, we foresee a day when consumers will buy eggs at much lower price.

Dr Odima and Ms Oiro are principal and senior analysts, respectively, at the Competition Authority of Kenya