Economic Contribution of the Pastoral Meat Trade in Isiolo Town, Kenya

Abstract

Pastoralism as a system has been subject to persistent undervaluation, due to inadequate information on its comparative and competitive advantages over alternative land uses. this lack of understanding of pastoralism’s contribution to the national economies of the Horn of Africa region is partly to blame for unfavourable policies, scant attention and limited investment in the sector. the age-old mainstream view that pastoralism needs to be modernised has informed most pastoral development projects in the region. this has led to government and international organisation efforts to transform pastoral land tenure, sedentarise pastoralists and introduce competing land uses in traditionally pastoral landscapes.this study uses a total economic valuation approach to characterise the true economic contribution of pastoral meat production to the economy of Isiolo town. the study includes a comprehensive literature review to understand the socioeconomic and ecological dynamics of Isiolo County. We used purposive sampling to identify individuals for semi-structured and key informant interviews, including livestock traders, brokers, butchery owners, meat transporters, eatery owners, hide and skin store owners and offal traders. Our study shows that the pastoral meat trade makes a considerable contribution to the local economy and the county at large: • It employs 448 individuals who, together with business owners, support 2,665 immediate and extended family members. • Business owners make an average gross monthly profit of KSh933,315 (about uS$10,975), paying their employees an average of KSh8,932 (about uS$105) a month. • Businesses contribute KSh8 million in cess (agricultural tax), and slaughter fees: KSh6 million in livestock sales tax, KSh1.5 million in slaughter fees and KSh0.5 million in cess on hide and skin sales. • the subsector also contributes an annual average of: – KSh520,000 to the veterinary department for meat inspection services and certificates for meat transportation – KSh420,850 in business licences and transport permits, and – KSh354,720 a year to the public health department for individual medical certificates and premises health licences.the revenue collected shows the subsector’s potential in the economy of Isiolo town. If the county government helps create a more effective and efficient working environment, this can be much improved. Our study found a lack of proper infrastructure in both sales yards and slaughter houses as well as access roads that are in poor state —very dusty when dry and very muddy in the rainy season. Insecurity adds to these challenges and reduces pastoral meat producers’ participation in the market. Brokers also exploit traders in the sales yard, take over transactions and cheat on prices. the subsector has great potential for improving the economy of Isiolo town and the lives and livelihoods of the county’s population. the county government can help create an effective and efficient working environment by improving policy, regulatory and institutional frameworks, technical and technological interventions and infrastructure (markets and feeder roads). this will increase government revenue and improve the earning power of participants, enabling the sector to support an even larger population, in the town and the wider county.