Kenya’s livestock sector, often overlooked, could become a cornerstone of sustainable development, boosting food security and economic resilience with the right investments and innovations.
Despite supporting nearly 60% of the nation’s population through nutritious food, employment, and livelihoods, the sector has historically received less than 10% of agricultural financing over the past decade
This financing gap remains stark, especially in the face of growing demand driven by population growth and urbanization. In response, the International Livestock Research Institute (ILRI), Gatsby Africa, the International Livestock Research Institute (ILRI), and AgThrive hosted a Livestock Investor Convention that brought together stakeholders, SMEs, and impact investors to explore innovative technologies and financing models that could shape the future of the sector.
At the heart of the convention was a call to support small and medium enterprises (SMEs) in the beef, dairy, and poultry value chains. According to ILRI experts, SMEs with proven impact should be nurtured from their informal beginnings to become investor-ready ventures.
The necessary training and mentorship can transform these businesses into key players, enabling them to close the supply-demand gap and even potentially expand into export markets.
The convention aimed to attract long-term impact investors to provide patient capital to livestock SMEs. As population pressures mount, there is growing urgency to shift the way food systems function, especially in livestock, where market demand is outpacing supply.
The event also highlighted the importance of building strong linkages among actors across the value chain, from feed suppliers and breeders to processors and retailers. Strengthening these connections was identified as critical to supporting those who feed not only Kenya, but potentially the continent shortly.
Opportunities in Beef and the Role of Pastoralists
John Wamahiu, Technical Lead for Livestock at Gatsby Africa, emphasized the growing opportunity in the beef sector. “Beef consumption in Africa is expected to grow by 22%, which exposes a huge deficit, whereas the size of the beef market in Kenya alone is already at USD 2.7 billion,” he said.
His sentiments were echoed by Farmer’s Choice CEO Felisters Gitau, who stressed the importance of consistency in meeting growing consumer demands. Gitau pointed out that the pastoralist communities form the backbone of the beef industry, given their cultural commitment to livestock keeping.
“We need to see a model of financing that is accommodating enough to understand the dynamics of the cattle-for-beef sector. This is a business that takes two to three years to actualize, so it’s crucial to have a model of financing that is sustainable,” she said.
Participants agreed that collaboration across the value chain, from fodder suppliers to livestock farmers and meat sellers, is essential to improving efficiency. With improved genetics, better breeds, and coordinated supply chain evaluations, the sector can achieve a balanced supply and demand system.
Researcher Tim Njagi from the African Network of Agricultural Policy Research Institutes reiterated Kenya’s opportunity to grow the livestock sector by improving production systems.
Dr. Guyo Maliacha Roba, head of the dryland unit at IGAD’s center for pastoral areas and livestock development, noted that many financial institutions wrongly perceive pastoralists as unbankable. However, when properly assessed, they present a strong case as reliable trade partners in the sector.
He added that SMEs often thrive when integrated into direct networks, stressing the importance of strengthening linkages for smooth value chain engagement.
The initiative seeks to finance scalable solutions that will not only improve production but also address the growing deficit across the beef, dairy, and poultry sectors.
