Investor interest in Kenya's thriving livestock sector, which accounts for 42 percent of the country's agricultural GDP and sustains an estimated 25 million livelihoods, is strong despite substantial financial obstacles.
There is a clear opportunity for strategic investments to drive growth and innovation in the livestock industry and ensure that livestock production is done sustainably to reduce adverse social and environmental effects, as the demand for livestock products is expected to grow by up to 50% by 2030.
The livestock industry needs to be more funded despite its undeniable importance.
Although private sector investments in agriculture have increased, they are still tiny in the livestock industry.
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Just 10% of the over $500 million that investors have made in agriculture since 2015 is related to livestock-related businesses.
A recent study on the livestock investor landscape in Kenya illuminates important factors impeding investment traction. The study evaluated over 80 investors, from impact investors to commercial banks. It identified several specific issues, such as the unorganized nature of the industry, production-level risks such as disease outbreaks and weather-related hazards, a lack of "investor-ready businesses," and a lack of good opportunities for livestock investments.
The study's conclusions point to rising investment demand, highlighting the necessity of active pipeline development and investor cooperation. Businesses also need to make sure they are "investment ready."
