By Jimson Mwikamba and Ian Kiprop, Young Professionals 2024/25
Introduction
Beef production contributes an average of 65 per cent of the total earnings from livestock and livestock products. The main beef production systems in Kenya are pastoralism, ranching, agro-pastoralism and feedlots, with an estimated 14 million beef cattle, which supports 10 million livelihoods directly. The pastoralists, located in arid and semi-arid lands (ASALs), control 56.5 per cent of beef cattle and produce 80 per cent of beef consumed in Kenya. The jobs opportunities in the beef value chain spans from cattle production to retail and support services, which provide income and employment thus sustaining livelihoods. There exists opportunities to grow the beef industry by targeting investments in the post-production value chain activities. However, land tenure systems, access to veterinary services and cattle rustling challenges hinder the development of the beef value chain. This blog explores the status of beef industry and recommends strengthening the value chain for job creation.
Status of Beef Industry in Kenya Progress made in the beef industry Creating jobs through beef production
The beef industry is the largest contributor to income from livestock and employment in ASALs, with a total value of Ksh 112.7 billion. Jobs are created in beef production through cattle farming, where farmers raise cattle for meat among other products complemented by herding and veterinary services. Beef production increased from 2014 to 2018 then significantly dropped in 2019 and remained low (Figure 1). This was due to persistence of drought, leading to mass death of livestock. The farm gate beef prices have been rising (Figure 2), due to increasing input costs and demand coupled with limited supply.
Figure 1: Beef production (1000MT)
Source of data: KNBS (2022)
Figure 2: Average farmer gross price of beef (third grade) per 100kg
Source of data: KNBS (2022)
Expanding job creation in beef value chain
The Kenya beef value chain creates jobs through various activities in production, processing and marketing. The value chain directly employed 54,799 people in 2023, which accounted for 19 per cent of all direct wage employment in agriculture, forestry and fishing sector (KNBS, 2024). However, only 8 per cent were public sector employees, implying the key role played by the private sector in creating employment along the beef value chain. The value chain also informally employs half of the agricultural workforce in Kenya and supports over 80 per cent of pastoral communities’ livelihoods.
Kenya has approximately 2,000 slaughter facilities, including 70 per cent slaughter slabs and 30 per cent town council-operated slaughterhouses, with seven export-standard facilities. Further, Kenya operates 19 tanneries, 13 of which are active, with a combined tanning capacity of 3.3 million hides and 6.3 million skins, enabling production of leather products. The value chain also includes traders who handle the distribution of both beef and beef products.
Challenges in the Beef Industry
Land tenure systems
The competing needs for land leads to extensive land subdivision and grabbing, which diminishes cattle grazing areas. Consequently, pastoralists experience overgrazing, resource conflicts and diminishing pasture quality. This severely impacts the jobs in the beef value chain, pastoralist’s livelihoods and the industry’s economic contribution.
Veterinary and extension services
The human resource gap is more than 55 per cent, the majority (80%) of whom are specialized veterinary professionals. By 2023 the number of veterinary professionals was 2,954 supporting approximately 106 million livestock (KNBS, Statisitical Abstract 2024). The situation can be improved with increased support by county governments to employ adequate professionals through budget allocation.
Cattle rustling
Cattle raids affect jobs creation in the beef industry and the livelihoods. This is because it discourages investment besides lowering productivity and limiting the job prospects along the value chain. Over the period 2014 and 2016, Kenya lost a total of Ksh 51.78 billion, including Ksh 14.75 billion in stolen cattle and Ksh 140.6 billion in relocation expenses.
Opportunities in the Beef Industry
Existence of supportive policy framework
Kenya’s livestock sector is regulated by the National Livestock Policy that establishes a framework for national and county governments to promote the industry. It emphasizes animal genetics, health and production methods that align with the Kenya Vision 2030. The Meat Control Act governs slaughterhouses, meat inspection and cleanliness to ensure the safety and quality of meat products. Further, the Kenya Meat Commission Act created the Kenya Meat Commission to offer a ready market for farmers, improve meat processing and boost exports.
Enhancing transport, logistics, retail and marketing support services
The need for efficient transport in beef production generates employment in logistics and meat distribution to urban markets such as Nairobi and Mombasa, which account for 75 per cent of Kenyan meat consumption. Beef exports, particularly to the Middle East, create jobs in packaging, compliance with standards and global trade logistics. The growing demand for beef, particularly in urban markets, has occasioned 100,000MT annual deficit in Kenya. This offers employment opportunities in sales, inventory management and marketing at supermarkets, butcheries, nyama choma joints and online platforms. The expansion of the beef industry creates jobs in both public and private sector veterinary services, breeding, cattle drug suppliers (agrovets) and equipment maintenance to support beef cattle production.
Conclusion and Recommendations
The development of beef value chain provides an opportunity to create employment for most of the population in arid and semi-arid lands and other actors. Addressing emerging challenges by considering the following recommendations could help realize the full potential of the beef industry.
- Land adjudication and titling in pastoral areas: Provide land titles and strengthen land-use and zoning policies to reduce pressure on graze-lands and conflicts arising from land grabbing and overlapping interests, particularly in community lands.
- Empower counties to employ more veterinary and extension professionals: This can be done by enhancing county budgets and offering conditional grants targeted at developing the beef value chain, particularly in pastoral counties.
- Enhance multisectoral approach to address cattle rustling: This includes involving state, non-state and community agents to enhance security, regulate livestock markets through traceability systems, gather intelligence and offer alternative conflict resolution mechanisms to stabilize the beef industry.
