Discussion Paper No 290 of 2022 on Enhancing the Competitiveness of Kenya’s Livestock Products in the African Continental Free Trade Area: Revealed Comparative Advantage

Abstract

This study examines how Kenya can enhance its trading opportunities in the African Continental Free Trade Area (AfCFTA) market, focusing on livestock products. The analysis assesses Kenya's relative competitiveness and specialization in livestock trade compared to other AfCFTA member states. Data from the International Trade Centre database spanning the period from 2017 to 2021 is utilized. The findings reveal that Kenya holds a significant comparative advantage in meat and edible offal, as well as in leather products within the AfCFTA market. However, the potential of the leather industry remained untapped before the AfCFTA. While Kenya lacks a widespread comparative advantage in the dairy and egg products category across Africa, value addition in these products demonstrates higher competitiveness in the AfCFTA market. Based on these findings, the study recommends deliberate actions to enhance Kenya's competitiveness in various livestock products as the AfCFTA becomes operational. Suggestions include establishing industrial parks and zones, improving the business environment, revitalizing dairy and egg production, and providing continuous training on livestock farming practices. These policy recommendations are relevant to government bodies such as the ministries of Trade, Agriculture, National Treasury and Economic Planning, the Kenya Meat Commission, the Kenya Association of Manufacturers, the State Department for Development of Arid and Semi-Arid Lands, and other stakeholders.