Category: Reports

“Feeds will kill your business.”
You’ve probably heard this statement over a million times.
It’s what many are told when they decide to get into poultry farming — that you’d make a lot of money, were it not for the prices of feeds.
Worse still, feed prices keep rising year after year.

From 2020 to mid-2022, poultry feed costs in Kenya rose by 40–50%.
Following the same trend, feed costs in Kenya 2025 could increase by another 25%.
Is this a lie? Definitely not.

Animal feeds are the single largest expense on any poultry farm — layers or broilers.
Even for livestock like cattle, pigs, or fish, feed accounts for about 70% of the farm’s total expenses.
After deducting labor, vaccines, water, and other costs, most farmers are left with around 20% of their revenue as net profit.
Some don’t even break even.
Worse still, some incur losses.

To survive, farmers try different ways to reduce feed expenses:

-Buying cheaper, low-quality feeds. This often backfires due to poor egg production and even greater losses.

-Purchasing in bulk for discounts. Only large farms benefit from this.

-Supplementing with local feed options such as pawpaw, vegetables, azolla, or hydroponic fodder. These are difficult to balance nutritionally.

-Producing their own feed. While this is cost-effective, it only works for large farms that understand feed formulation and raw material sourcing.

So What Did I Do?

As part of my research on why animal feeds prices are high in Kenya — a concern that keeps many from starting poultry farms — I came across a 2024 Animal Feeds Inquiry Report by the Competition Authority of Kenya (CAK).

This report explored the reasons behind the high feed prices and made key recommendations to solve the issue.

Below is a summary of the report.

In my next post, I’ll share my personal take on how the government and farmers like us can take action.

If this problem is fixed, Kenya could unlock massive employment opportunities across the animal feeds value chain.

Manufacturers, distributors, farm owners, and workers would all benefit.

Increased egg production would follow — the cheapest source of protein for most African families — and this would help reduce malnutrition across the continent.

But Is This Problem Unique To Kenya?

Unfortunately, yes.
Among East African countries, animal feeds prices in Kenya are the highest.
Compared to international benchmarks, feed prices here remain unreasonably high.

Kenya also struggles with the influx of cheaper imported eggs, mainly from Uganda.
Why? Because Uganda has lower poultry feed costs, allowing their farmers to sell eggs more cheaply while still making a profit.
This puts Kenyan poultry farmers at a serious disadvantage.

So Why Are Animal Feeds Prices High In Kenya?

According to the CAK report, there are 7 key reasons behind the high animal feed prices in Kenya:

1. Heavy Dependence On Imported Raw Materials

Kenya doesn’t produce many of the raw materials needed to make poultry feeds.
Instead, we import them — and this adds costs at every step.

Soybean meal is imported mainly from Zambia, Malawi, and Uganda.

Sunflower cake comes from Tanzania.

Vitamins and additives are brought in from countries like China, the Netherlands, and Germany.

Every stage of importation — from foreign exchange, transport, taxes, and port delays — raises the final price.
Local farmers pay for all this when they buy feeds.

This overreliance on imports makes our feed prices volatile and sensitive to global changes.

2. Market Dominance By A Few Feed Manufacturers

Only four companies control over 50% of the commercial animal feed market in Kenya.This means just a few players determine the pricing trends.

While the report does not accuse them directly of collusion, the structure allows for potential price control.
This limits the power of smaller players and gives big companies room to increase prices unchecked.

When competition is low, innovation and price cuts disappear — bad news for smallholder farmers.

3. Unfair Pricing For Non-Integrated Feed Producers

Some feed companies are “integrated,” meaning they also own or control the supply of raw materials.
Others rely on external suppliers for inputs.

In 2021 and 2022, the report shows that non-integrated feed producers were charged higher prices for inputs.
This “margin squeeze” forced many smaller producers out of business.

So the fewer the producers, the less competition — and the higher the feed prices.

If you’ve ever wondered why the small local feed company died, this is a major reason.

4. Input Processors Set Their Own Rules

Most natural processors of feed inputs like oil cakes and grains are based in East and Southern Africa.
Because they dominate the region, they can dictate trade terms and pricing.

Kenya, being a buyer, has little say.
Our feed manufacturers must accept the high prices or go without.
This makes it harder to produce affordable poultry feed options for local farmers.

5. Lack Of Transparency And Information Sharing

Large feed suppliers in Kenya often exchange information with each other.
However, smaller players are left in the dark.

This lack of transparency allows the big players to coordinate pricing — even without formal agreements.
It also blocks new entrants from competing fairly.

When small businesses don’t know the actual market rates or raw material trends, they can’t plan or scale.

This keeps animal feeds prices in Kenya unnecessarily high.

6. County Taxes Create Fragmented Markets

One of the most frustrating problems for manufacturers is the inconsistent and excessive county taxes.
These vary wildly across Kenya and make the distribution of feeds expensive and unpredictable.

For example:

Machakos County charges Ksh. 20,000 annually per vehicle for distribution.

A separate Ksh. 20,000 is charged for branding.

Each truck needs a Ksh. 2,500 annual transport sticker.

On top of that, there’s a daily parking fee of Ksh. 500 per truck.

Other counties add more charges:

In Kericho, feeding all six sub-counties could cost at least Ksh. 1,200 per day per truck.

In Tharaka Nithi, manufacturers must pay all vehicle parking fees upfront — regardless of how often they deliver.

And it doesn’t stop there.
Counties also charge Agricultural Produce levies for inputs like rice polish, salt, and maize bran.
These additional costs are passed on to the farmer.

All this leads to one thing: higher feed costs across Kenya.

7. Limited Use Of Yellow Maize For Feed

In countries like Uganda, both white and yellow maize are grown.
White maize is used for human food, while yellow maize is reserved for animal feed.

But in Kenya, almost all maize is white — and it’s used for both food and feed.
This creates direct competition between humans and animals.

In 2025, maize prices rose and this means layer feed prices will ‘jump’ by almost 30%.
Why? Because the demand for maize in feed production still outpaces supply.

If Kenya increased yellow maize production, feed manufacturers could have a cheaper, dedicated source.

Why Poultry Feed Rises Faster Than Dairy Feed

Dairy feed is easy to make — just mix the ingredients.
No need for expensive machines.

Poultry feed, on the other hand, requires pelleting and crumbling, which needs precise formulation and investment in machines.
This increases production costs and drives up prices.

It’s no surprise that poultry feed costs in Kenya continue to rise faster than other animal feeds.

What CAK Recommends

To solve the problem, CAK made several important recommendations:

1. Reposition the animal feeds industry.
Invest in the sector and remove existing barriers to unleash its job creation and production potential.


2.Improve cross-border markets and regulations.This would make it easier to source inputs at fair prices across COMESA and EAC regions.


3. Eliminate county-level trade barriers.
Unpredictable taxes hurt feed manufacturers and distort national pricing. These must be reviewed and harmonized.


4. Track and monitor feed markets.
Government and regional bodies should assess whether Kenya’s feed prices match international trends.
They should intervene in cases of anti-competitive behavior.


5. Add animal feeds to KAMIS monitoring system.
This would help create transparency in feed pricing, benefiting both manufacturers and farmers.

What This Means For You

If these solutions are fully implemented, poultry farming could become more profitable.
Lower and stable feed prices mean more profit, less stress, and better planning.

Imagine earning 40% more because feed costs dropped.
It’s not a dream — it’s possible with the right reforms.

In My Next Post…

Next Friday, I’ll share what I believe we farmers and the government can do to lower feed prices sustainably.
These are practical, long-term solutions that will build on CAK’s findings.

Together, we can take agriculture to the next level — maybe even Mars 🚀

📄 Read the Full CAK Inquiry Report here

Before You Go

💬 Which CAK recommendation do you think would help the most?
Leave a comment below.

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See you next Friday!

Carlos Deche

secretlayerske@gmail.com

carlosdeche4040@gmail.com