Market Assessment

Comprehensive Study of the Livestock Marketing System in Samburu District, Kenya, 2008

    In Samburu District, Kenya, SNV has catalysed the establishment of business partnerships between local authorities and communities in the management of livestock markets. SNV assisted in setting up local Livestock Marketing Associations (LMAs), whose involvement in management of the livestock market appears to have improved its efficiency. The LMAs have taken charge of tax collection, splitting proceeds with Samburu County Council, which has increased the Council's revenues from livestock sector by around tenfold. The LMAs take a small commission for maintenance and improvements to the markets. Furthermore, SNV assisted a local microfinance institution, Samburu Traders SACCO (STS), to develop a livestock loan from which producer groups (such as LMAs) can secure finance.

    Based on the apparent success of these two initiatives, SNV decided to explore the commercial potential for replicating the two business models to other arid or semi-arid districts of Kenya. The principal aims of replications are to enhance the financial stability of LMAs and District Livestock Marketing Councils, and boost county councils' revenue bases, based on any efficiency gains.

    This study explores the key assumptions underlying a push for scaling-up the two interventions. It explores their ability to generate profit through efficiency gains, the key drivers of success, the most salient risks together with appropriate mitigation strategies, and lists recommendations, best practices and lessons learned.

    The report is divided into the following sections:

    1. Introduction
    2. Outline of methodology
    3. Profiling pastoralism in Kenya
    4. Profiling the study area
    5. Profiling livestock population and health
    6. Profiling the livestock markets
    7. Livestock interior markets in Samburu
    8. Establishing an interior market
    9. Profiling the revenue sharing model
    10. Economic value of the revenue sharing model
    11. Underlying risks and mitigation strategies
    12. The future of livestock markets
    13. Increasing compliance and market efficiency
    14. Upscaling Market Operations
    15. Appendices