The cost of animal feed in Kenya is expected to decline if proposals in the draft 2025/2026 national budget are adopted.
The National Treasury has proposed to exempt raw materials used in animal feed production from taxation, a move aimed at lowering production costs and easing the financial burden on livestock farmers.
Tax exemption means that certain products or transactions are not subjected to taxes, effectively reducing the cost of doing business.
In this case, exempting raw materials from tax is expected to cut the cost of producing animal feed, which would likely translate to reduced retail prices for consumers.
The proposal is part of a broader strategy to support Kenya’s livestock sector and promote food security. In addition to the tax exemption, the draft budget also allocates KSh 3.9 billion to the livestock sub-sector.
This funding will go towards strengthening the livestock feed value chain and covering importation costs for essential inputs.“If implemented, these proposals will reduce the cost of livestock production, making animal feed more affordable to farmers,” . “This is expected to enhance productivity, improve the competitiveness of Kenyan livestock products, and encourage more Kenyans to invest in livestock farming.”
The agriculture sector, particularly livestock, plays a crucial role in Kenya’s economy, supporting millions of households. High feed costs have long been a major barrier to profitability for livestock farmers.
By addressing this issue through targeted fiscal policies, the government aims to boost sector performance and support rural livelihoods.
The 2025/2026 national budget is scheduled to be presented on June 12, exactly one month from today.
