Poultry farmers in Kenya struggle as feed costs continue to soar

KENYA – The price of chicken feed in Kenya has increased by at least 37% over the past four years, forcing many farmers to produce their own feed, a new report by the Competition Authority of Kenya (CAK) reveals.

The cost of poultry feed in Kenya is nearly twice as high as in South Africa and Brazil. 

Even feed imported from a Dar es Salaam-based manufacturer remains cheaper than locally produced alternatives, despite additional expenses such as transport and import costs.

Rising feed prices have pushed poultry farmers to explore alternative feeding methods, according to the Federation of Kenya Poultry Farmers (FKPF). 

Some have started using Black Soldier Fly larvae, azolla, duckweed, omena, or homemade feed formulations, which can reduce feed costs by up to 75%.

A 50-kilogram bag of layers mash has more than doubled in price from US$14 to US$32 over the past five years. 

However, egg prices remain stagnant at around US$2 per tray, reducing farmers’ profit margins and leading to declining sales for feed manufacturers, according to FKPF official Benson Maina.

At least 30 feed production companies have shut down in the last three years, resulting in the loss of over 1,000 jobs. 

Farmers struggling to maintain profitability have increasingly turned to self-mixed feeds as a cost-cutting measure.

Kenya’s poultry feed prices remain 43% higher than those in Malaysia, where authorities cracked down on price-fixing cartels in 2023. 

Malaysia imports almost all its maize and soymeal for feed production, yet its prices are lower than Kenya’s.

The high cost of poultry feed directly impacts consumers, making chicken meat in Kenya nearly twice as expensive as in South Africa, where a kilogram costs US$3.35 compared to Kenya’s US$6.71.

The country imports most of its soybean meal, sunflower cake, and some maize for feed production from Tanzania, Uganda, Malawi, and Zambia. 

These imports are controlled by four major companies that oversee the entire production chain, from importing raw materials to milling and distributing the final feed products.

A more competitive feed market could save Kenyan farmers over US$23.4 million annually, according to the CAK report. 

Lower feed costs would also reduce egg and poultry prices while creating more job opportunities in the industry.

Challenges in the poultry sector extend beyond feed prices. In November, Nairobi poultry farmers raised concerns about market control by powerful cartels at City Market. 

They accused intermediaries of dictating artificially low prices, making it difficult for farmers to cover production costs.

Many farmers from Kiambu and Machakos counties reported financial losses, blaming wholesalers and middlemen for setting unfair rates. 

Some claimed they were forced to sell at prices far below their expenses.

Faced with increasing feed, veterinary, and maintenance costs, nearly 200 farmers gathered at a recent Nairobi Poultry Farmers Association meeting to demand government intervention. 

Association head Samuel Ndung’u urged authorities to introduce regulations to curb monopolistic practices in the market.

Farmers are advocating for a transparent pricing system that reflects actual production costs and policies to promote fair competition. 

Without intervention, they fear continued financial losses and further industry decline.

Kenya’s poultry production has been shrinking, with chicken meat output falling from 88,700 metric tons in 2019 to 69,200 metric tons in 2020. 

In 2018, production had peaked at 131,700 metric tons but has since been on a downward trend.

A proposed trade deal between Kenya and the United States has further unsettled local farmers. 

The agreement would allow U.S. poultry imports, which small-scale farmers say could destabilize the domestic market and drive local prices even lower.

Some experts suggest that strengthening farmer cooperatives could help producers secure better prices and reduce reliance on middlemen. 

Improved financial management and sustainable farming practices may also help poultry farmers withstand economic pressures in the long term.

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