Kenya struggles with rising chicken imports from Uganda

KENYA – Kenyan poultry farmers have raised concerns over the rising influx of cheap chicken imports from Uganda, warning that it is putting the local industry at risk. 

They argue that the surge in imported poultry is threatening their livelihoods, prompting growing pressure on the government to intervene and protect the domestic market.

They argue that trade policies within East Africa have put them at a disadvantage.

The Uganda Revenue Authority imposes a 25% tax on Kenyan chicken exports, which includes an 18% value-added tax, a 1% railway development levy, and a 6% withholding tax.

Meanwhile, Ugandan poultry products enter Kenya without restrictions, creating an uneven playing field.

Tanzania has also maintained strict trade barriers, banning poultry imports from Kenya since 2016.

This issue is not new, as poultry farmers have repeatedly expressed frustration over the absence of protective measures against cheap imports.

In April 2022, farmers raised concerns after the national budget failed to introduce anti-dumping duties on imported chicken, leaving them exposed to competition from neighboring countries.

High production costs in Kenya, driven by a 16% value-added tax on feed supplements, have made it difficult for local producers to match the low prices of imports.

As a result, over 4,000 chicken farms have shut down, with businesses that previously sourced chicken locally now opting for imports.

In August 2022, the Kenya Poultry Breeders Association (KPBA) reported that HNH Rainbow, a Ugandan company, imported 72,000 kilograms of chicken meat into Kenya at US$1.90 (KSh345) per kilogram.

This price was significantly lower than the market rate of US$2.50 (KSh450) in Kenya and US$2.55 (KSh460) in Uganda, prompting accusations of unfair trade practices.

KPBA argued that Uganda was dumping surplus chicken meat in Kenya at reduced prices, making it difficult for local farmers to compete.

Zachary Munyambu, Secretary General of the Federation of Poultry Farmers in Kenya, warned that the continued inflow of low-cost imports could threaten food security and lead to job losses.

He estimated that if the situation remained unchanged, around 1,000 jobs in poultry farming regions such as Thika, Wangige, Kitengela, Murang’a, and Nyeri would be at risk.

Impact on Egg and Broiler Markets

The challenge extends beyond chicken meat, as egg farmers have also suffered due to cheap imports.

In November 2020, farmers in Kiambu County called for a ban on imported eggs after their prices dropped to US$0.06 (KSh8) per egg, below the production cost of US$0.07 (KSh9).

The Kiambu Poultry Farmers’ Cooperative Society urged the government to step in and protect local farmers from unfair competition.

Broiler farmers have also been forced to scale down operations, with over 540,000 farmers reducing production by September 2020 due to increased supply from Uganda.

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