An estimated 25 million people in Kenya depend on livestock and contribute up to 42% of Kenya’s agricultural GDP according to estimates as demand for livestock continues to rise attracting investors. The demand for animal protein continues to grow in Kenya and the country is incapable of coping with the growing demand.
The demand is expected to grow by 50% in the year 2030 presenting overwhelming opportunity for investors. The deficit creates growth and innovation to ensure sustainable production in the sector. Negligence and lack of financing have crippled the sector’s productivity. A good amount of financing has been invested in the agricultural sector while the livestock sector is overlooked.
Investors raise concerns about the lack of a ready market, weather-related risks, and disease outbreaks presenting a lack of uncertainty hindering investors’ traction. A study shows that 50% of investment was made in dairy and poultry deals. Strong returns for the products stamp an established ready market for the products.
“Diary and poultry received more than 50% off deals in our study, underscoring investors’ perception of lower risks in these value chains. their established strong revenue streams and reliable consumer demand through formal marketing outlets such as supermarkets make them particularly attractive,”
noted Kristin Girvetz, Director at Ag Thrive.
Due to the findings, there is a growing demand for investment collaboration and readiness for the business.
“Capital is ready, but identifying viable investment opportunities remains a challenge for the investors,”
said Arjun Bhoopal, the Livestock Programme, Gatsby Africa
“Through collaboration, we can explore new avenues to mitigate risk and reduce financing costs driving investment across Kenya, and the continent.”
Funded by the Bill and Melinda Gates Foundation through Global Livestock Advocacy for Sustainable Development and implemented by ILRI conducted the study.
“To meet the growing demand for milk, meat, and eggs, unlocking more finances for livestock solutions is critical,”
Shirly Tarawali, Assistant General ILRI. Said,
“Investments are needed to grow the livestock sector sustainability thereby creating a triple-win that benefits smallholder farmers’ efforts for climate adaptation and mitigation and contributing to Kenya’s economic growth and sustainable development agenda.”
