The rising prices of eggs, poultry, and milk in Kenya are causing significant challenges. Over the past year, the cost of eggs has nearly doubled, remaining high at approximately KES 590 (around US$4.50). Additionally, chicken in Kenya costs twice as much as it does in South Africa. This has resulted in 75% of Kenyans being unable to afford a healthy diet, which is particularly concerning for the 40% living below the poverty line.

The main cause of these high prices lies in the steep costs of feed for hens and dairy cows. Between 2020 and 2023, feed prices for poultry and dairy increased by 30-50%, prompting the Competition Authority of Kenya to investigate.

The inquiry uncovered discouraging findings. Poultry and dairy farmers in Kenya pay significantly more for feed compared to their counterparts in Brazil, South Africa, and even Malaysia, where feed prices were previously controlled by a cartel. A major factor contributing to these high costs is the concentration of the market, with four major feed suppliers accounting for over 50% of sales nationally—and up to 75% in certain feed categories.

Small and medium-sized enterprises (SMEs) in Kenya face severe pressure in this uncompetitive market. Rising input costs disproportionately affect these smaller producers, who pay up to 90% more than large companies. As a result, many SMEs are forced to raise prices, becoming uncompetitive, or stop supplying certain products entirely. This has led to job losses, higher feed prices, and reduced access to nutritious foods for Kenyans.

Feed producers in Kenya also face inflated costs in the market for inputs, such as soybean and sunflower, compared to international benchmarks. Similar to the animal feed sector, this market is dominated by a few players, costing the sector an estimated US$23 million annually in potential savings.

The uncompetitive animal feed industry places a heavy burden on households. Farmers struggle with reduced margins, while consumers bear the brunt of unaffordable prices for dairy, eggs, and poultry.
However, change is possible through collective action. Addressing anti-competitive practices, fostering new market entrants, and ensuring sustained growth in the sector are key steps. Continuous monitoring of feed prices at national and regional levels is crucial for identifying market disparities and intervening where necessary.

Regional bodies such as COMESA and the East African Community Competition Authority should investigate the soybean and sunflower markets for potential anti-competitive practices that inflate prices and restrict supply. Transparent trading conditions are essential to protect small feed producers.

Tackling these issues will enhance competitiveness in the Kenyan animal feed sector, enabling households to access affordable foods for a balanced diet. Moreover, this progress would benefit neighboring countries, promoting better nutrition and a more equitable market.

To achieve these goals, support from the global community is needed. By working together, stakeholders can create lasting change, addressing market concentration and improving access to affordable food. It’s time to empower Kenyan households and farmers—one partnership and one action at a time.