Animal feed prices surge as maize shortage hits Kenya’s livestock sector

KENYA – Kenya’s livestock sector is reeling under the pressure of skyrocketing animal feed prices, driven by a sharp increase in the cost of maize, a key ingredient in feed production. 

Market research shows that the price of maize has surged by 45% since January 2025, straining farmers and threatening food security nationwide.

According to industry reports, a 90-kilogram bag of maize now costs KES 4,800 (US$42.72), with projections suggesting it could rise further to KES 5,500 (US$48.95) by April. 

This price hike is pushing up the cost of animal feed, significantly impacting poultry and dairy farmers, and leading to higher prices for eggs, milk, and meat.

The Association of Kenya Feed Manufacturers (AKEFEMA) warns that many farmers will struggle to sustain their operations if the maize price surge continues. 

Poultry farmers, in particular, are facing severe financial strain, forcing them to pass on increased costs to consumers. As a result, essential protein sources, such as eggs and chicken, are becoming less affordable for many Kenyan households.

Industry leaders demand government intervention

In response to the crisis, industry stakeholders, including the Poultry Breeders Association of Kenya (PBAK) and AKEFEMA, urge the government to intervene. 

Their primary demand is the waiver of import duties on maize to stabilize prices and ensure sufficient supply in the market.

“Waiving taxes on imported maize will provide much-needed relief to consumers by stabilizing and potentially reducing the price of unga (maize meal) and other maize-based products,” said AKEFEMA Chairman, Karuri. 

“Furthermore, it will ensure that animal feed manufacturers have access to affordable raw materials, preventing further price hikes in the livestock sector and safeguarding farmers’ livelihoods.”

However, government officials claim that the country has achieved maize self-sufficiency. Deputy President Kithure Kindiki recently announced that Kenya will not import maize in 2025 for the first time in 16 years. 

The government attributes this to increased local production, which has reduced reliance on imports in recent years.

The U.S. Department of Agriculture (USDA) projects that Kenya’s maize production will reach 4.4 million metric tons in the 2025/2026 marketing year, a 15.8% increase from the previous season. 

This growth is attributed to a 9.5% expansion in the area dedicated to maize cultivation, driven by favorable weather conditions. However, stakeholders argue that despite these positive projections, immediate relief is needed to counter the ongoing feed price crisis.

High feed costs threaten market competitiveness

A recent inquiry by the Competition Authority of Kenya (CAK) highlights that poultry and dairy farmers in Kenya pay up to 40% more for animal feed than their counterparts in South Africa, Brazil, and Malaysia. 

The investigation found that four major suppliers dominate Kenya’s feed market, creating an uncompetitive environment that drives up costs.

Key ingredients such as soymeal and sunflower cake are also priced significantly higher than international benchmarks, placing additional strain on feed producers. The CAK inquiry suggests that a competitive regional input market could have saved Kenyan farmers an estimated KES 3 billion (US$23 million) annually.

Moreover, vertically integrated feed companies benefit from lower input prices, while smaller producers are forced to pay significantly higher costs, leading to a margin squeeze that is pushing some out of the market. This lack of competition ultimately reduces farmers’ choices and inflates feed prices.

Experts and industry leaders are calling for comprehensive policy reforms to address these challenges. Recommendations include improving cross-border trade regulations, addressing anti-competitive market practices, and ensuring fair pricing mechanisms for key feed ingredients. 

Without immediate action, the sustainability of Kenya’s livestock sector remains at risk, with long-term implications for food security and economic stability.

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