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Animal Health Market Research Surgipham Final Report10032023.pptx
1. Surgipharm Limited
Scoping Study on
The Animal (Veterinary)
Healthcare
Market in Kenya
Prepared By
Study Period: January - March 2023
Confidential & Proprietary to Surgipharm Limited
K
E
N
Y
A
2. Confidential Surgipharm Limited
Confidential & Proprietary
This document contains confidential information that is proprietary to Surgipharm
Limited. This information is provided for the sole purpose of permitting the recipient
to read and derive required information as per the needs of Surgipharm. In
consideration of receipt of this document, the recipient agrees to maintain such
information in confidence and not to reproduce or otherwise disclose this information
to any person outside the group directly responsible.
3. Confidential Surgipharm Limited
FOREWORD
About Surgipharm
Surgipharm, an Imperial Company, was founded in 1985 with the objective of
establishing a country-wide network of pharmaceutical marketing and distribution.
Today Surgipharm, through its branches in Nairobi and Mombasa and a highly
motivated team of 395, is the largest, most efficient and reliable pharmaceutical
company in Kenya.
Surgipharm’s mission is to maintain a leadership position in the healthcare industry
built on a strong heritage of Quality, Ethics, Compliance and Trust in the marketing
and distribution of healthcare products. Surgipharm continues to be the preferred
distributor for principals and the most valued supplier for route to patient partners in
Kenya.
Surgipharm intends to expand its product offering portfolio into the Animal
Veterinary Market (Production and Companion Animals), hence the need to
commission this scoping study.
4. Confidential Surgipharm Limited
About the Scoping Study
In order to help define a clear market entry strategy, Surgipharm Limited contracted
Ecryp Technology Solutions Ltd to contact a scoping study on animal health.
Study Objectives
1. To establish the extend of the Kenyan market for animal health products that
include veterinary drugs and vaccines
2. Establish actors in animal health services, elucidate their experiences,
opportunities, challenges and recommendations
3. Identify strengths, opportunities, weaknesses and threats in the Animal Health
Products
4. Find out supply, demand and barriers to optimal access to appropriate Animal
Health Products
5. Establish the marketing strategies adopted by Animal Health Pharmaceutical Firms
in Kenya to enhance performance.
6. Carry out landscape PESTEL analysis on animal health products market.
7. Make recommendations on best market entry strategy
5. Confidential Surgipharm Limited
Study Outputs
I. Regional synthesis, analysis and forecasts of the study market; providing
insights on the regions in which the animal health products industry is blooming
and potential for scale up.
II. Identification of current market value, key drivers, restraints, opportunities, and
challenges (DROC) in the market and their impact on feasibility for new
products, product mix and pricing dynamics.
III. Study of the effect of exogenous and endogenous factors that affect the
market; which includes broadly demographic, economics, and political, among
other macro-environmental factors presented in PESTLE Analysis
IV. Study of the competitive factors that determine the overall profitability of an
Industry, using Porter’s five forces analysis for analyzing the level of
competition and business strategy development.
V. Identification and stakeholder analysis of the market players along with their
product portfolio, current strategic interests, key financial information, legal
issues, SWOT analysis and potential for a sustained the market environment.
VI. Develop a business case along with investment opportunities to provide both
individuals and organizations a strong financial foothold in the market
7. Confidential Surgipharm Limited
About Ecryp Technology Solutions Ltd
Ecryp Technology Solutions Ltd established in the year 2005, has a team of
researchers with expertise in M&E, animal breeding, disease modelling,
econometric/statistical analysis, Data gathering and management technologies.
The team has been working on various projects in partnership with Agriculture and
Food Authority Kenya, National Aids Control Council, Centre for Population Health
Research and Management (CPHRM Consortium),3r Dairy Project SNV, Mastercard
Foundation, KCB Foundation, Intra Health, IFAD, ILRI,USAID, CDC-Kenya, GIZ
CARE,KEMRI-Wellcome Trust in various monitoring, evaluation, research,
technological and skills development assignments
The team has excellent competencies in research design, research technologies,
evaluations, data management, data collection methods, analyzing data using
statistical software (R, STATA, NVIVO, SPSS, MATLAP, PHP, Python).
8. Confidential Surgipharm Limited
Table of Contents
................................................................................................................................................................................................. 1
CONFIDENTIAL & PROPRIETARY ....................................................................................................2
FOREWORD ....................................................................................................................................................3
About Surgipharm........................................................................................................................................................... 3
About the Scoping Study ............................................................................................................................................. 4
Study Objectives ......................................................................................................................................................................4
Study Outputs ...........................................................................................................................................................................5
Research Methodology...........................................................................................................................................................6
About Ecryp Technology Solutions Ltd ................................................................................................................. 7
ACRONYMS AND ABREVIATIONS...................................................................................................12
1. EXECUTIVE SUMMARY ..................................................................................................................14
1. Overview ................................................................................................................................................................... 14
............................................................................................................................................................................................... 14
2. Key Findings ............................................................................................................................................................ 15
2. MARKET DYNAMICS........................................................................................................................27
1. Trends Impact Analysis...................................................................................................................................... 27
The Evolution of Animal Healthcare in Kenya.............................................................................................................27
2. Market Drivers ........................................................................................................................................................ 40
Overview ...................................................................................................................................................................................40
Regulatory Environment in Kenya...................................................................................................................................41
Non-Governmental Actors ..................................................................................................................................................57
Acts and Laws Regarding Food Safety and Livestock..............................................................................................58
3. Market Restraints.................................................................................................................................................. 59
Overview ...................................................................................................................................................................................59
Animal health service delivery in Arid and Semi-Arid Lands (ASALS) ..............................................................60
Constraints to animal health service delivery in Arid and Semi-Arid Lands (ASALS) .................................62
4. Market Opportunities .......................................................................................................................................... 71
Overview ...................................................................................................................................................................................71
5. Key Challenges in the Market.......................................................................................................................... 72
Overview ...................................................................................................................................................................................72
3. MARKET SEGMENTATION AND GEOGRAPHICAL ANALYSIS .................................73
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1. Structure of the Veterinary (Animal) Pharmaceutical Industry.....................................................73
2. Categories of veterinary medicines.............................................................................................................. 74
3. Size and segmentation of the animal healthcare market in Kenya............................................... 75
4. Product classes ...................................................................................................................................................... 77
5. Players in the Animal Health Market in Kenya........................................................................................ 80
6. Small Animal Sector Market Segments....................................................................................................... 81
7. Over the Counter Products (OTC) ................................................................................................................. 84
3.7 Clinical Complexity ............................................................................................................................................... 85
4. STRATEGIC ANALYSIS ..................................................................................................................89
1. Strategic Analysis of Animal Healthcare Products................................................................................ 89
PESTEL Analysis on Animal Healthcare Products.......................................................................................................90
Porters Five Forces Analysis..............................................................................................................................................91
2. Factors affecting farmer decision on the use of animal health products...................................92
3. SWOT Analysis of the Kenyan Animal Healthcare Industry.............................................................. 93
Strength ....................................................................................................................................................................................93
Weakness..................................................................................................................................................................................94
Opportunity ..............................................................................................................................................................................95
Threats.......................................................................................................................................................................................96
5. COMPETITIVE LANDSCAPE ........................................................................................................97
1. Manufacturers......................................................................................................................................................... 97
Registration of Veterinary Medicines..............................................................................................................................97
Veterinary Medicines manufacturers in Kenya...........................................................................................................98
Opportunities and challenges for manufacturers in Kenya....................................................................................99
......................................................................................................................................................................................................99
Manufacturers: Overview .................................................................................................................................................100
Types of manufacturers ....................................................................................................................................................101
Market entry models for international manufacturers...........................................................................................102
Vaccine production in Kenya ...........................................................................................................................................103
International and National Private Manufacturers ..................................................................................................107
Examples of manufacturers .............................................................................................................................................109
Challenges facing manufacturing plants.....................................................................................................................110
Mitigation on Challenges facing manufacturing plants..........................................................................................111
2. Importers, Distributors and Wholesalers................................................................................................ 112
Importers, distributors and wholesalers: Overview ...............................................................................................112
Importers, distributors and wholesalers: Example.................................................................................................113
3. Retailers .................................................................................................................................................................. 114
Retailers: Overview.............................................................................................................................................................114
Retailers: Examples ............................................................................................................................................................115
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4. Animal Health Product flow control ........................................................................................................... 116
Diagram of the possibilities of product flow control by different sectors .......................................................116
General Animal Health Product Flow: Key Learnings.............................................................................................116
General Animal Health Product Flow: Diagram........................................................................................................117
Biologicals Animal Health Product Flow: Key Learnings .......................................................................................117
Biologicals Animal Health Product Flow: Diagram...................................................................................................118
Vitamins and Supplements: Animal Health Product Flow: Key Learnings .....................................................118
Vitamins and Supplements: Animal Health Product Flow: Diagram ................................................................119
Pharmaceuticals: Animal Health Product Flow: Key Learnings..........................................................................119
Pharmaceuticals: Animal Health Product Flow: Diagram .....................................................................................120
5. Veterinary Services Delivery Systems ...................................................................................................... 121
6. Challenges facing Veterinary Regulatory Environment .................................................................... 124
7. Mitigation on challenges facing Veterinary Regulatory Environment........................................ 125
8. Pharmacovigilance system ............................................................................................................................. 126
9. Marketing strategies adopted by Animal Health Pharmaceutical Firms in Kenya ...............127
Pricing Strategy ....................................................................................................................................................................127
Product Strategy ..................................................................................................................................................................128
Place Strategy .......................................................................................................................................................................129
Promotion strategy..............................................................................................................................................................130
10. Trends and Innovations ................................................................................................................................ 132
SIDAI AFRICA LTD.: Innovation through vertical integration ............................................................................132
Digi Cow: An uber” like platform for Small Scale Producers in Kenya............................................................133
6. RECOMMENDATIONS: .................................................................................................................134
OVERVIEW...................................................................................................................................................................... 134
MARKET ENTRY STRATEGY (KENYA) ................................................................................................................. 135
WHERE? ...................................................................................................................................................................................135
WHAT? .....................................................................................................................................................................................135
WHY? ........................................................................................................................................................................................137
WHO? .......................................................................................................................................................................................138
HOW? .......................................................................................................................................................................................139
MAJOR CHALLENGES.................................................................................................................................................. 143
7. REFERENCES .....................................................................................................................................145
8. ATTACHMENTS.................................................................................................................................148
Appendix 1: Notifiable Diseases in Kenya, 2015 ........................................................................................ 149
Appendix 2: Notable Diseases Reported in Kenya in the last 10 ......................................................... 151
Appendix 3: List of Licensed Veterinary Manufacturers in Kenya ....................................................... 152
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Appendix 4: Manufacturers and Distributors of Veterinary Medicines in Kenya .......................... 153
Appendix 5: Veterinary Pharmaceuticals Registered Drugs................................................................... 154
Appendix 6: Registered Veterinary Biologicals ........................................................................................... 156
Appendix 7: Registered Veterinary Pest Control ........................................................................................ 158
Appendix 8: Registered Veterinary Biocidal ................................................................................................. 160
Appendix 9: Registered Veterinary Feed Additives ................................................................................... 162
Appendix 10: Registered Veterinary Medical Devices.............................................................................. 164
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ACRONYMS AND ABREVIATIONS
AH: Animal Health
AHTs: Animal Health Technicians
AHTTAK: Animal Health Technician Association of Kenya
AMR: Anti-Microbial Resistance
ASALs: Arid and Semi-Arid Lands
CAHWs: Community Animal Health Workers
DAH: Decentralized Animal Health
DVS: Directorate of Veterinary services
GDP: Gross Domestic Product
GMP: Good Manufacturing Practices
GoK: Government of Kenya
HHs: House Holds
ILRI: International Livestock Research Institute
ITDG: Intermediate Technology Development Group
KALRO: The Kenya Agricultural and Livestock Research Organization
KALT: Kenya Association of Livestock Technicians
KDB: The Kenya Dairy Board
KASPA: Kenya Animal Scientist Practitioner Association
KFC: Kamujini Farmers Centre
KNVLN: Organizational chart for the National Veterinary Laboratory Network
KVA: Kenya Veterinary Association
KVB: The Kenya Veterinary Board
KVPA: Kenya Veterinary Paraprofessional Association
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KVAPS: Kenya Veterinary Association Privatization Scheme
NORAD: Norwegian Overseas Aid
NGO: Non-Governmental Organization
OAU-IBAR: Organization of African Unity-Interafrican Bureau for Animal
Resources
PARC: The Pan African Rinderpest Campaign
SSA: Sub Saharan Africa
SSPs: Small Scale Producers
TRVTT: Thermostable Rinderpest Vaccine Technology Transfer
VMD: Veterinary Medicines Directorate
14. 1. EXECUTIVE SUMMARY
1. Overview
Animal Health (AH) actors have an opportunity to
leverage Kenya’s stable and open market, as the country
continues the animal sectors transformation
from subsistence to commercial undertaking
Fig 1.1 Market Overview
Low AH awareness
among
SSPs
Ease of doing business
and favorable trade
conditions
Infrastructure
(challenges
Reaching the ASALs)
Unmet demand,
especially among SSPs
and pastoralists
Low vaccination
coverage
Strong
institutional/regulatory
frameworks
Low quality of some
Products in the market
Leading to AMR
Small but growing
companion segment
Relatively low number
of
Qualified AH professionals
High digitization (e.g.
Wide adoption of mobile
money)
Climate change
Vulnerability
Kenya 2023
Ripe
&
Ready
Innovative
Hold
Greenfield
Ease of doing business
AH market Evaluation Matrix
AH
market
opportunity
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1.2 Key Findings
► Kenya’s stable economy and liberalized trade system make it one of the
easiest countries in SSA to do business.
o Annual GDP growth averaged 5.6% between 2009-2019.
o Ranked 3rd in SSA in the Doing Business Index (and 59th worldwide).
► One of the largest livestock populations in Africa (60% of the households
keep livestock), Kenya’s growing livestock market holds a huge growth
potential for the years to come.
o Livestock represents 40% of agricultural GDP, 12%of total GDP.
o Value of livestock and livestock products raised from $833M USD in 2012 to
$1,394M USD in 2019.
o Projected increase in consumption of animal products (e.g., demand for beef
expected to increase by over 170% between 2010 and 2050).
o Small companion animals’ segment, growing rapidly with urbanization.
► Compared to other countries in the region, Kenya has a mature AH sector,
governed by established institutions.
o Ranked 1st in SSA by the Sustaining Livestock indicator, measuring the
quality of manufactured feeds and veterinary products in the country.
o The creation of the Veterinary Medicine Directorate (VMD) in 2017 helped
consolidate main AH regulatory activities in a single dedicated entity.
o Cost and timescales of product registrations can be significant.
o An advanced agri-tech ecosystems, nearly 30% of all agri-tech start-ups in
SSA operate in Kenya, with 18% also headquartered there.
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► Kenya’s AH sector’s main potential lies in the shift from a treatment
to a preventive approach and improving AH awareness
o Vaccination coverage is low at 10% (2014) versus the 2030 target of
80%
o Urbanization (50% of people expected to live in urban areas by 2050
vs 27% in 2019), leading to increases in infectious and zoonotic
diseases.
o Improper use and poor quality or counterfeit products are eroding SSP
trust and leading to high levels of AMR, impacting both animals and
humans
o Large commercial farms typically have good prevention practices and
diagnostic capabilities
o SSPs and pastoralists (72% of livestock holders) are underserved and
represent significant AH opportunities
► AH product distribution is dominated by the private sector, with an
increasing presence of national actors playing multiple roles across
the value chain
o Direct exporting is the main market entry strategy for international
manufacturers, giving importers significant influence.
o The growth of national private manufactures is changing the ecosystem
o Counties have a small role in the AH product flow, except for vaccines
o Agro-dealers (over 10k across the country) play a key role as main suppliers
to SSPs, and large product volumes flow through them
o Kenya’s significant dairy sector drives high supplements volumes, with
growth driven by need for productivity to meet demand
o Pharmaceuticals are the main product category sold informally
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► Agriculture is the main driver of economic growth
o Major contributor to the economy contributing about 34.15% to GDP (2019)
and 53.81% to employment (2020)
o Sector accounts for 50-65% to export value. Vegetable product exports
totaled $3.01BN USD in 2018(48.5% tea.20.4%cut flowers)
o Net importer of animal products with imports totaling $150M USD (23%
sheep and goat meat) in 2019
o Ag sector performance decelerated from 6.1% growth in 2018 to 3.6% in
2019, mainly due to extreme weather phenomenon (suppressed long rains)
o County governments’ expenditure grew by 300% between FY15/16 and
FY19/20
o Farm size and productivity are highly heterogeneous
o SSPs dominate the agricultural landscape, mainly cultivating maize, beans,
potatoes and keep cattle, small ruminants and poultry
19. ► Kenya Animal Health Market Structure
o Kenya is a meat deficit country, despite being a leading exporter of processed
meats and chilled carcasses
o Import of live animals is much greater than exports. On the first semester of
2019, the import value of live animals was around 7 times higher than the
value of exports (mainly from neighboring countries)
Fig 1.4: Primary Species in Kenya 2019
POULTRY 44.6M,
33%
PIGS 0.6M, 10%
DONKEYS 1.2M,
1%
CARMEL
4.7M, 4%
PETS
UNKNOWN, 0
CATTLE 20M, 16%
GOATS 35M, 26%
SHEEP 27M, 20%
Source: https://www.fao.org/home/en/
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► Livestock keeping households per species (2017)
o As population and urbanization grows, consumption of milk, beef, chicken,
pork and eggs is expected to increase by 175%, 173%,174%,268% and
503%, respectively, between 2010 and 2050.
o Value of livestock and livestock products increases from $833M USD in 2012
to $1,395M USD in2019. Cattle and calve production value is the highest.
Fig 1.5 Estimated Livestock keeping households per species (2020)
► Total number of
households:
► 11.63 million
Number of HHs
keeping Animal
% of total
number of
households
% of livestock
keeping
households
Livestock keeping
households
6,985,359 60%
cattle 3,610,839 31% 52%
Goats 2,766,171 24% 40%
Sheep 1,659,964 14% 24%
Equine 826,572 7% 12%
chicken 5 ,511 ,901 47% 79%
Source: https://www.fao.org/home/en/
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► Main Livestock Production Systems
o High potential Farming is situated in tropical temperate area, in peri-urban
Nairobi and surrounding regions: Most AH service providers, manufacturers
and distributors actors are concentrated in these areas
o 60-70% of the National Livestock Herds is in the ASALs, they are principally
occupied by pastoralists and agro-pastoralists
o Marginal mixed farming is situated in Eastern and Western steppe or tropical
regions: Less productive due to poor dairy genetic resources and lack of
market access
22. ► Most Livestock is owned by Small Scale Producers (SSPs) engaged in
mixed farming or pastoralism
Access to AH products
Primarily buy
pharmaceuticals and
vitamins/supplements
from agro-dealers but
their main AH expense
are feeds
Rarely vaccinate their
animals
Access to AH products
Veterinary drugs are
their main expense
CAHWs play an
important role in
facilitating access to
veterinary medicine
Subsidies provided by
GoK on major vaccines
are rising
Access to AH products
Buy AH products
directly from
manufacturers,
imports, or wholesalers
feeds are their main
expense
For ad-hoc needs, they
will purchase products
are agro-dealers
Easy access to
products and often
hires experts
The end consumers of AH products and services are mainly divided into subsistence and commercial
Farmers. Kenya’s agri-business sector is very active, drawn by an open operating environment and
opportunities to inform, equip, and sell to farmers while improving animal health and productivity.
Pastoralist and agro-
pastoralists
Mainly found in the
ASALs (which cover
75% of total surface
land)
Pastoralists keep a
large number of
animals, mainly cattle,
indigenous breeds of
sheep, goats and
camels
Mix crop and livestock
production systems
Mainly found in
urban and peri urban
areas and high
rainfall areas
Priority is crop,
livestock comes
second. subsidence
activity with a small
number of animals
(2-10), mainly cattle
and small ruminants
Commercial or specialized
farming
Mainly found near
trading points and
near urban and peri-
urban markets
Mostly focused on
dairy, followed by
ruminant meat and
poultry
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23. ► Focus on Cattle
►
The prominence of cattle in Kenya livelihoods
11.8M HHs cattle, of which 76% are beef cattle
and 24% are cows
3.6M HHs own at least one cattle, contributing
from 40 to 73% to total household income
While beef animals are kept by small, medium and
large farmers, 95% of dairy farmers keep an
average of just 3 cows.
Trends indicate there is an increased number of
peril-urban increase urban farms.
The dairy sector contributes 14% to agricultural
GDP and 3.5% of total national GDP
Cattle as an illustration of Kenyan
farming systems
Mixed farming or semi- intensive
• average of 3-20 cows that are part of
a large, mixed breed of animals,
inclusive also small ruminants and
chickens. Dairy cows graze during
daytime and are provided with food
supplements
Pastoralists
• Keep indigenous breeds, herds vary
from 20 to several hundred heads that
rely entirely on communal grazing
areas and water sources.
• Milk and beef are the main products
Commercial
• More widespread compared to
other countries of the region
representing 17% of the heads.
• Divided in ranching (Average of
1,000 heads, highly commercial
large scale), feeding (capital
intensive system) intensive diary
(average of 15 cows on quality
feed) and extensive diary (20-200
heads and pasture-based
production)
Source: https://www.fao.org/home/en/
Agro-
Pastoral,
29%
Semi-
intensive
dairy, 11%
Intensive
dairy, 10%
4%
RanchingE, xtensive
dairy, 3%
Feedlot, 0%
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
18.8 Million Heads
Pastoral,
43%
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24. ► Focus on Poultry
The prominence of poultry in Kenyan livelihood
43.8m Chicken contributing 15.1% of total
livestock value added (2017)
Sector produces more than 35000 tones of meat
and (6 BN Eggs (2019)
5.5Million HHS keep poultry and 75% of HHS in
rural areas contributing 36-63% of income
(depending on production system)
Sources of nourishment meat and eggs and
immediate cash (sale of birds)
Three major (meat) production
system
Intensive
• Market~ oriented, practiced in urban
areas
• Exotic chicken (largely exotic hybrids)
raised in confined structures, properly
fed and vaccinated. Broilers are sold
within 5 to 8 weeks
Semi~ intensive
• Practiced throughout the country,
improved chicken kept In confined
simple structures: birds scavenge
during the day are provided with some
feeds supplements.
• Common vaccination against major
diseases but limited bio-security
practices.
• Most birds sold after growing them for
between 4 and 5 months though some
are self-consumed.
Extensive (free ranging)
• Low input low output system where
indigenous birds are left to freely
roam for feeds.
• Farmers rarely vaccinate the birds or
treat them when sick.
• Women and children are responsible
for the birds. Mainly kept for egg
production though also sold
opportunistically in informal markets.
• Popular throughout the country, more
common in western regions, some
parts of lower eastern, North rift areas
and in coastal areas.
Semi-
intensive ,
32%
Intensive ,
20%
0%
10%
20%
30%
40%
Extensive ,
50% 48%
60%
Extensive Semi-intensive Intensive
Source: https://www.fao.org/home/en/
39.7 Million raised for meat
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► Characteristics and Attributes of Animal Health Services
It is useful to discuss the economic characteristics and attributes of animal healthcare
services to help define the distribution of responsibilities between the public and private
sectors, because these services can be delivered both by government veterinary staff
(completely or partly free of charge) or by private veterinarians (usually at cost).
Broadly speaking, the spectrum of animal healthcare services includes preventive and
control and/or inspection programs and the treatment of sick animals. The following
are some of the characteristics and attributes of animal health care services
1. Professionalism: Animal health services are provided by trained and licensed
professionals, such as veterinarians, veterinary technicians, and animal health
care workers.
2. Specialization: Animal health services are often specialized to meet the specific
needs of different types of animals, such as small animals, large animals, and
exotic animals.
3. Preventive care: Animal health services focus on preventing diseases and
illnesses in animals through routine check-ups, vaccinations, and other
preventative measures.
4. Diagnosis and treatment: Animal health services include diagnostic testing and
treatment for a wide range of animal diseases and illnesses.
5. Emergency care: Animal health services also provide emergency care for
animals in critical condition, such as trauma, injuries, and illnesses.
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6. Surgery: Many animal health services offer surgical procedures for animals,
including orthopedic and soft tissue surgeries.
7. Rehabilitation: Some animal health services also provide rehabilitation services
for animals that have been injured or have chronic health conditions.
8. Supportive care: Services such as pain management, palliative and hospice care
for terminally ill animals are also provided by some animal health services.
9. Communication: Good communication and transparency with the
owner/caregiver is also an important aspect of animal health services.
10.Continuity of care: Providing continuity of care and keeping records of
animal's health history, treatment and progress is also a key attribute of animal
health services.
27. 2. MARKET DYNAMICS
The Veterinary Pharmaceutical Industry in Kenya is more vibrant in comparison to
other East Africa Countries, however, uncoordinated leading to misuse of drugs and
increased antimicrobial resistance that pose a threat to human and animal health.
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2.1 Trends Impact Analysis
The Evolution of Animal Healthcare in Kenya
The colonial era: private veterinary practice
During the colonial and immediately post-independence era most clinical vet
services in Kenya were provided by private practitioners and ‘Vet Scouts’.
The private practitioners were confined in high potential areas, mainly in the so-
called white settler areas.
Vet Scouts were local livestock keepers who received informal training from local
vet staff, were employed by the County Council and seconded to the government,
and lived and provided clinical and other services in the villages.
The provision of private animal health services were, and still are, mainly
governed by the Veterinary Surgeons Act (Cap 366) and the Pharmacy and
Poisons Act (Cap 244).
The Veterinary Surgeons Act was borrowed mostly unchanged from the British
Veterinary Surgeons Act.
This Act broadly limits the practice of veterinary medicine and surgery to
registered veterinary surgeons, and staff under their direct supervision.
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However, there are two clauses at the end of the Act added in recognition of the
fact that many of the larger commercial farmers of the time provided their own
veterinary services.
These clauses allow anyone to treat their own animals, or those belonging to a
neighbor, provided it is not done for profit.
The 1970s and 1970s: free services for all
Sessional Paper No 1 (1965) ‘African Socialism’ set the scene for a massive
increase in government livestock services, to be provided for free throughout the
country, and massive investment in the professionalization of the veterinary
service.
Vet Scouts at village level were gradually phased out and replaced by Vets and
Animal Health Technicians (AHTs), based at Divisional and Locational level
respectively.
The Private Practitioners went out of business. Many were expatriates and left
the country.
Although clinical services became more accessible in the high potential areas,
they did not improve much in the arid and semi-arid areas (ASAL) because
relatively fewer Vets and AHTs were posted there and, without enough Vet Scouts
or any other intermediaries, they could hardly reach the ASAL nomadic herds
because of the vast distances, poor terrain and poor road network.
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The 1980 to 1992: structural adjustment and covert operations
The first decentralized animal health (DAH) scheme was quietly established in
1980 by an NGO in Turkana District, an ASAL area in Northern Kenya.
Some of the Catechists of the Catholic Diocese of Lodwar, were trained by a vet
from Uganda to treat common livestock diseases as they travel around doing
their other duties.
This model of animal health care delivery gradually evolved into the Adakari Vet
Scout program promoted by the EEC-funded Turkana Rehabilitation Program in
the late 1980s and the Norwegian Overseas Aid (NORAD) program in Turkana in
the early 1990s.
The first inklings of change in the livestock sub-sector emerged through a series
of research papers in the Ministry of Livestock Development in 1982 and 1983,
leading to a policy paper on the privatization of veterinary services.
This was warmly received by the Minister for Livestock Development, and he was
perceived to be ahead of the game within government. But these plans were
never implemented
The second DAH scheme got underway in 1984, again under the Catholic Church,
this time in Narok District, another ASAL area in South-Western Kenya, but
collapsed when Kit Flowers, the expatriate vet who set it up, left the country.
Structural adjustment within government and the gradual privatization of public
services took centerstage in 1986.
Serious planning for reform in the Ministry of Agriculture (which had by that time
subsumed the Ministry of Livestock Development) began with the donor-funded
Agriculture Sector Investment Project in the mid-1990s.
30. Confidential Surgipharm Limited
However, an interdepartmental committee set up to look at the implications for
the Department of Veterinary Services failed to reach any concrete conclusions
before quietly collapsing following the transfer of the committee chairman.
The Intermediate Technology Development Group (ITDG), a UK based NGO,
arrived in Kenya in1986 to work with the Catholic Diocese of Meru at Kamujini
Farmers Centre (KFC) in the lower potential areas of Meru District.
ITDG had become interested in the dramatic improvements in rural health care
provision in China during the 1970s and whether the ‘barefoot doctor’ approach
could be applied in the livestock sector.
They were also influenced by World Bank proposals for new privatized livestock
services in Sub-Saharan Africa.
Based on the results of some preliminary studies ITDG trained 17 Community
Animal Health Workers (CAHWs) at Kamujini in early 1987.
From the outset ITDG intended to test the approach, and if successful, to seek to
influence the policy environment so that the approach could be replicated more
widely.
ITDG established several other CAHW schemes over the next few years with
different partners in many different parts of the country including East Pokot (also
in1987) Machakos (1988), Makueni, Samburu (1989), and Turkana (1990).
Budget restrictions began to bite in the late 1980s and the government stopped
automatically employing all vets and AHTs on graduation in 1988, and froze
recruitment into vacant posts.
This had a disproportionate impact in the ASAL areas (commonly referred to as
hardship areas) as vets and AHTs in those areas frequently requested transfers
to less remote areas.
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The University and Technical Training Institutes carried on training veterinary
staff, turning out about 50 veterinary graduates and approximately 300 AHTs
each year.
Although some of the vets and AHTs started working privately, and others were
employed by private sector companies, NGOs and cooperatives, or moved into
different professions, the gradually increasing number of unemployed vets and
AHTs became a significant pressure group for change over the next few years.
In 1988 ITDG organized the first of what was to become a series of annual
workshops for vets involved in DAH projects (ITDG, 1991; 1993; 1994; 1999;
2000).
The workshop, held at KFC in Meru District, was attended mainly by ITDG and
their partners’ staff, and included three government vets who had been involved
in setting up the programs.
Gradually over the next few years, the proportion of government veterinary staff
among the participants increased to nearly50%, including some Provincial-level
Veterinarians and senior researchers.
Towards the end of1999 there were indications that the Director of Veterinary
Services was aware of, and interested in the CAHW approach.
More CAHW schemes were quietly established by bilateral and NGOs during the
early 1990s, usually working with district veterinary staff, but these schemes
were largely invisible to the DVS and to the Kenya Vet Board (KVB) and Kenya
Veterinary Association (KVA).
The Thermostable Rinderpest Vaccine Technology Transfer (TRVTT) Project was
started with OAU/IBAR in 1990.
The project aimed to transfer the production of a thermostable Rinderpest
vaccine, developed in the USA, to laboratories in Africa.
32. Confidential Surgipharm Limited
This vaccine has a long shelf life without refrigeration, and can be distributed and
used much more easily than earlier vaccines which required an efficient cold-
chain.
The project successfully established vaccine production facilities in Cameroon and
Ethiopia (though not in Kenya), but the national veterinary departments
supported by OAU/IBAR PARC continued to use the same inefficient cold-chain
routes and systems.
Despite the DVS’s opposition, the GTZ-funded Marsabit Integrated Development
Program started to train ‘Contact Herders’ with local department of veterinary
services staff in1992.
Over the next few years, the approach they developed was gradually taken up by
a number of other GTZ-funded projects in other parts of Kenya.
After three national Vets Workshops, ITDG organized an International Workshop
in Kenya in 1992, with participants from 18 countries worldwide.
Several Kenyan vets were also invited to the workshop, which included field visits
to several decentralized animal health (DAH) projects in various parts of the
country.
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The 1994 to 1997: the conspiracy of silence
Increase in CAHW schemes over the next two years, and from this time, national
animal health policy-makers were fully aware of the gradually expanding number
of CAHW projects.
There was a gradually increase in the number of requests for clarification from
field-based veterinary officers who were involved in CAHW schemes, however,
these requests were never addressed.
The Director of Veterinary Services could not confirm that CAHW schemes were
legal, and he knew that seeking to change the prevailing policies and law to make
them so would encounter strong opposition from the entire veterinary profession,
yet closing them down would dramatically reduce the availability of animal health
services in the ASAL areas.
After many years in preparation, the KVA Privatization Scheme was finally
launched in 1994.
This EC funded scheme provided soft loans to veterinarians wishing to set up in
private practice.
Originally conceived in 1989 it had taken nearly five years to develop because
the KVA, dominated at that time by Government vets, could not find an affordable
loan package attractive enough to encourage any government vets to leave the
security of a government job.
Meanwhile many of the unemployed vets had quietly established private practices
without any loan at all.
The unemployed AHTs had a harder time however. Although they are all
secondary school leavers with two- or three-years tertiary training in animal
health care at technical institutes, the Veterinary Surgeons Act forbids them to
34. Confidential Surgipharm Limited
provide veterinary services except ‘under the supervision of a veterinary
surgeon’.
Some had been employed by private vets or drug companies, and some had
started to practice illegally, but many were still unemployed and increasingly
unhappy.
They had decided to establish an Association to represent their interests in the
early 1990s, but had encountered strong opposition in the Department of
Veterinary Services, and the Kenya Association of Livestock Technicians (KALT)
was only finally registered in 1995 after they had threatened to march to State
House to express their grievance to the Head of State.
The Minister also promised to change the law to allow them to establish private
animal health services in their own right.
The CAHW schemes approach were tested and they were found to be very
successful, achieving much higher coverage rates for a fraction of the cost of the
other more traditional government vaccination programs, convincing OAU/IBAR
to adopt it as the key principle for the PARC-VAC project.
During 1996, in an attempt to convince the Kenyan government to adopt the
CAHW approach to Rinderpest vaccination, the TRVTT project organized a visit
for Kenyan vets to South Sudan to see the CAHW program for themselves.
The Kenyans were impressed by the results, but were reluctant to accept that an
approach which seemed to work in neighboring but war-torn Sudan could be
appropriate in Kenya.
So TRVTT then took them to Afar in Ethiopia to see a similar approach, but in a
country with an effective veterinary department and indeed they became more
interested.
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By this time there were a large number of CAHW schemes throughout the ASAL
areas of Kenya, meeting annually at the ITDG Vets Workshops, and some donors
were also training CAHWs in medium potential areas.
The FARM Africa Goat Project, a collaborative project, established at the request
of the Kenya government, had started to develop a program with the department
of veterinary services in Meru District, incorporating both private veterinarians
and CAHWs.
The number of CAHW schemes continued to increase during 1997, but the
Director of Veterinary Services chose to turn a blind eye. OAU/IBAR started
negotiating with the DVS to start vaccination programs using CAHWs in Northern
Kenya, meanwhile running training of trainers’ workshops for NGO staff involved
in training CAHWs in South Sudan and Northern Kenya.
The NGOs started talking once more about lobbying for policy change and legal
reform to promote DAH schemes, and were joined by KALT who were becoming
increasingly militant since there was still no sign of the necessary reforms to allow
them to practice.
Then, ironically, just when there seemed to be a real opportunity to promote
change, ITDG’s animal health program ran out of funds after the 7th Vets
Workshop in Marsabit.
The Kenya Vet Board and Kenya Veterinary Association had only gradually
become aware of the CAHW movement, but became increasingly alarmed during
the year they learned more about them.
They regarded them generally as a threat to veterinary professionalism, but were
particularly concerned to discover that some schemes were operating in medium-
potential parts of the country, where some private vets were trying to establish
36. Confidential Surgipharm Limited
private practices, and that many of the schemes had been established by
expatriate vets working in Kenya without registering with the Board.
Their concern finally boiled over at a FARM Africa workshop in Embu in December
1997
The 1998 to 2000: the tipping point
After more than a year’s work with local veterinary staff, FARM Africa had finally
found a workable model for the animal health component of their goat project.
Their plan involved establishing private vets with loans from the Kenya Veterinary
Association Privatization Scheme (KVAPS), working with Animal Health Assistants
(AHAs), who would support self-employed CAHWs at village level, to provide the
necessary service to farmers.
This proved too much for a representative of the KVB who had been invited to
the inaugural workshop in Embu, who angrily warned the Kenyan project vet that
what he was proposing was illegal and that he would be struck off the veterinary
register if he proceeded.
Shortly afterwards, in January 1998, the KVB put a full-page advertisement in
the national newspapers pointing out that it was illegal to train community animal
health workers and that any Vets doing so risked being struck off the veterinary
register.
This alarmed everyone working on DAH schemes. ITDG and others decided that
the best defense would be to try to get all parties together to discuss the issues
and find a solution.
But ITDG had no money and had to look for resources from other organizations.
37. Confidential Surgipharm Limited
OAU/IBAR, still waiting for approval for their proposed CAHW program in Northern
Kenya, was also keen to find a solution. They and The Netherlands Development
Agency (SNV) offered to fund the workshop, provided it was supported by all
stakeholders.
ITDG then formed a committee of a few individuals, to develop the workshop.
In view of the sensitivity of the workshop theme, (‘Practice, Policy and the Law
in the Delivery of Animal Health Services particularly in Arid and Semi-Arid Lands
(ASALs)’), ITDG was advised to include representatives of all key parties in the
planning committee.
The Vet Board letter also unblocked a study of livestock services in ASAL areas
that had been proposed some months earlier by the European Union Rural
Development Adviser.
The study included stakeholder workshops in each region, and culminated in a
major workshop to discuss the findings in Nairobi in May 1998.
At around the same time, the DVS finally signed a Memorandum of Understanding
(MoU) allowing PARC-VAC to establish a pilot scheme using CAHWs in Turkana
and West Pokot.
An international workshop on DAH, focusing on delivery of animal health services
in Eastern Africa, held in Arusha in December added further impetus. In planning
for this workshop, each of the three East African countries (Uganda, Tanzania
and Kenya) had a coordinator
It was well attended by participants from Kenya, who were impressed by the
degree of interest being shown by other countries, by the evidence of the
effectiveness of CAHW schemes presented by delegates, and the endorsement of
the approach by OAU/IBAR – an increasingly important donor for livestock
services in Kenya.
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The 8th ITDG Vets Workshop, renamed a DAH Workshop, was held in Meru in
May 1999, following several months planning by a committee including
representatives of all the main stakeholders (ITDG, 1999).
The program included key presentations from all of the stakeholders, and covered
the right spectrum of participants. The workshop endorsed the CAHW approach
and established multi-stakeholder working groups to develop guidelines and
standards for CAHWs in Kenya, and recommended a review of the legislation and
policy.
After much negotiation, ITDG obtained funding for a further three-years’ work,
with explicit outputs relating to policy reform.
The MoU between DVS and PARC-VAC was expanded to include SNV and VSF
(Belgium) as implementing agencies and to cover more divisions in Turkana and
West Pokot.
The 2000 to 2002: rocks ahead
Between September and November 1999, many new NGOs became involved in
training CAHWs as part of short-term relief programs in ASAL areas following the
1999–2000 drought.
With only short-term funding, some of these programs were implemented too
quickly, neglecting the essential and time-consuming, community-awareness and
education elements of successful programs.
Many collapsed as soon as the agency withdrew, attracting criticism from
veterinary professionals and providing evidence of the dangers of the approach
for its opponents.
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Changes in the executive committee further undermined support in the KVA and
the Annual KVA Conference in April 2000 in Mombasa, narrowly sidestepped a
motion proposing to lobby to ban CAHWs.
The motion did not go through but gave a clear signal that there was significant
resistance to DAH approach within KVA.
Surprisingly, there was no discussion at all about CAHWs at the following KVA
Annual General Meeting in April 2001.
The KVB and DVS finally approved the minimum standards and guidelines for
CAHWs in early 2001, and since then these guidelines have been tested in the
field.
In the meantime, the animal health policy review process was being carried out,
and at the OAU/IBAR 50th Anniversary Party in November 2001, the Minister of
Agriculture promised to push the new policy through Cabinet if it could be
completed by February 2002.
The new animal health policy document was duly completed in early 2002 and a
draft submitted to the Permanent Secretary, Ministry of Agriculture and Rural
Development for further scrutiny.
Some unfortunate drafting in the new Veterinary Practitioners Bill which defined
CAHWs as ‘Veterinary Surgeons’ provoked a very strong reaction at the Annual
KVA Meeting in Kakamega, where delegates strongly opposed any further moves
to legalize CAHWs and proposed to petition for an injunction.
Recent information indicates that KVA has already petitioned DVS to withdraw
the document to allow inclusion of their input. It seems that it may be a while yet
before CAHWs are finally legalized in Kenya.
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2.2 Market Drivers
Overview
i. Improved focus by the Government on Livestock production hence
Animal Healthcare
ii. Rapid growth of companion animal segment (pet)
iii. Increased participation of Veterinary Practitioners in the private sector
focusing on diagnosis and treatment Main focus of the Government is on
preventive measures
iv. Farmer Education on Animal HealthCare creating awareness on need to
take good care of animals
v. Entrance of multinationals in the market leading to increased Research
and new treatment of diseases
41. Regulatory Environment in Kenya
a. Overview
Fig 2.1: Map of Regulatory Actors
Since lauching of the strategy for revitalizing Agriculture(SRA) in
2004,the government of Kenya has been undertaking legal and
regulatory reforms in the agriculture sector as one of its priority
programs to revitalize,develop and modernize the sector.
Semi-autonomous institutions
Veterinary Medicine
Directorate (VMD)
Kenya Veterinary Board
(KVB)
Kenya Veterinary Vaccines
Production
Institute (KEVEVAPI)
Kenya Dairy Board
Kenya Agriculture and
Livestock Research
organisation
Kenya Tsetse and
Trypanosomiasis
Eradication Council
Kenya Animal Genetics
Resource Centre
STATE
DEPARTMENT
FOR LIVESTOCK
BUREAUS OF
AGRICULTURE
AND LIVESTOCK
COUNTY
GOVERNMENT
DIRECTOR
OF VETERINARY
SERVICES
Directorate of
Veterinary Services
Directorate of
Livestock services
The county government implement the national
government policies to the extent that the policies
relate to the county and in particular shall be
Responsible for:
i) Crop and animal husbandry
ii) Livestock Sale Yards (Markets)
iii) Abattoirs
iv) Plant and Animal Diseases
v) Fisheries
vi) Veterinary services excluding regulation of the
profession)
Four division
i) Disease surveillance, vector regulatory&
Zoological services.
ii) Diagnostics and efficacy trial venters/vet
farms
iii)Veterinary public governance &
management
Support services
MINISTRY OF AGRICULTURE
LIVESTOCK AND FISHERIES
MAP OF REGULATORY FACTORS
National
County
Level
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42. Structure, functions and institutions of the ministry of agriculture and livestock
development.
Fig 2.2: Structure, functions and institutions of the Ministry of Agriculture and Livestock
Development
Ministry of agriculture and livestock
development (cabinet secretary)
State for department for livestock
development (principal secretary)
State department for crop development
(principal secretary)
FUNCTIONS
► Livestock policy management
► Development of livestock industry
► veterinary services and disease control
policy
► Range development and management
► Livestock marketing
► Promotion of dairy industry
► Livestock insurance policy
► Livestock branding
► Promotion of bee keeping and apiculture
► Promotion of quality of hides and skins
► Leather sector development and promotion
of value chain
► Livestock research and development
► Animal genetic research
► Tsetse fly and trypanosomiasis research and
control
INSTITUTIONS
► Kenya veterinary vaccine production
institute (state corporations Act
Cap.446 through Gazette Notice No
223 of the 4th June,1990.)
► Kenya veterinary board (veterinary
surgeons and veterinary para
professionals Act No 29 of 2011)
► Veterinary medicines directorate.
► Animals technicians’ council animal
technicians Act No 11, 2010)
► Kenya meat commission (Kenya meat
commission act, Cap 363)
► Kenya leather development council
(Kenya leather development council
Order, No 114 of 2011)
► Kenya Dairy Board (Dairy Industry Act
Cap 336)
► Kenya animals genetic resource
center, Kenya animals genetic
resource center
► Order,2011 (legal notice no 110 of
2011)
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b. Veterinary Medicines Directorate
Veterinary Medicinal products are regulated in Kenya by Veterinary Medicines
Directorate (VMD).
Before the commencement of VMD in 2017, Veterinary medicinal products were being
regulated together with human medicines by Pharmacy and Poisons Board under CAP
244 of the laws of Kenya.
Establishment of VMD
Veterinary Medicines Directorate (VMD) was established pursuant to CAP 366 (article
39) of the laws of Kenya which resulted in the formation of Veterinary Medicines
Directorate Regulations 2015. VMD regulations were operationalized in November
2017.
Role of VMD
The Veterinary Medicines Directorate (VMD) is responsible for regulating the
manufacture, importation, exportation, registration, distribution, prescription and
dispensing of veterinary medicines and other animal health products in Kenya.
VMD roles involve undertaking appropriate regulatory measures to achieve the highest
standards of safety, efficacy and quality for veterinary pharmaceuticals, immunological,
animal pesticides and feed ingredients as well as other animal health products,
manufactured locally, imported, exported, distributed, sold, or used, to ensure the
protection of animal health and welfare, food safety and security as well as public health
and the environment as envisaged by all laws in force in Kenya.
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VMD undertakes their regulatory functions by performing the following activities;
i. Drugs Registration
ii. GMP Inspections (Good manufacturing practices)
iii. Good Distribution Practices (GDP) Inspections – Agrovets, wholesale outlets
inspections
iv. Licensing of Veterinary manufacturing plants and distribution outlets such as
agrovets and wholesalers.
v. Issuing of import and export permits for trade in Veterinary medicines.
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c. The Kenya Veterinary Board (KVB)
The Kenya Veterinary Board (KVB) was established in 2010 under the Veterinary
Surgeons Act with the purpose of regulating the veterinary profession as well as
facilitating vertical/horizontal public/private partnerships covering veterinary and
livestock related issues.
As a regulatory body for the veterinary profession the eight-member board is
constituted in the following manner:
I. Four members elected by registered veterinary surgeons and appointed by the
minister
II. Minister nominates two members and two additional members are ex-officio
members i.e., Director of Veterinary Services and the Dean of the Faculty of
Veterinary Medicine, University of Nairobi
III. Minister also nominates the board chairman
46. KVB Organization Chart
Fig 2.2: The Kenya Veterinary Board
Kenya Veterinary Board
(KVB)
Secretary/CEO
Inspection and
Compliance
Department
Finance, HR and
Admin Department,
services Department
Quality
Assurance
Policy
Research and
strategy
Corporation
secretary and
legal services
Department
Regional
offices
Inspection
Compliance
Education
Registration
Licensing
Finance and
accounts
Hr and
Public
communication
Ict
Research
and
strategy
Quality
assurance and
performance
management
Internal audit
Supply chain
management
Legal
services
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47. Confidential Surgipharm Limited
Functions of the Kenya Veterinary Board
Core Functions:
i. Register all veterinary surgeons and for maintaining a registry of retained
veterinary surgeons
ii. License and regulate private veterinary practice
iii. Establish and strengthen veterinary specialist colleges
iv. Formulation and enforcement of a code of ethics across the veterinary
profession
v. Regulate veterinary education while promoting continuous professional
development
vi. Inspect and accredit
laboratories and clinics
animal health training institutions, veterinary
vii. Maintain registry of animal health institutions and animal health service
providers
viii. Monitor animal research and ensure maintenance of minimum animal welfare
standards
ix. Provide technical advice to the ministry of livestock on prevailing and
pertinent issues
x. Promote national, regional and international cooperation on veterinary and
livestock matters
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Other functions
The board also regulates the University of Nairobi and provides supervisory services
over other academic institutions listed below:
► Animal Health and Industry Training Institute (AHITI)
► Meat Training institute
► Kenya Wildlife Service Training Institute
► Dairy Training Institute – Naivasha
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d. Kenya Dairy Board
The Kenya Dairy Board (KDB): Established to facilitate development of a sustainable
and competitive dairy industry that produces safe, quality products and for contributing
to national economic development.
Functions of the KDB:
i. Organize, regulate and develop the efficient production, marketing,
distribution and supply of dairy produce
ii. Improve dairy produce quality
iii. Secure reasonable and stable prices to producers of dairy products
iv. Promote market research in relation to dairy products
v. Permit the highest degree of private enterprise involvement within the
production, processing and sale of dairy produce
vi. Adopt measures and practices that promote efficiencies within the dairy
industry
Additional Responsibilities:
► Promoting quality assurance for attaining high quality products with an
emphasis on milk production hygiene
► Encouraging proper use of milk containers during milk transportation and
storage
► Regulating the sales of raw milk and importation of dairy produce
► Promoting the consumption of quality milk and milk products
► Developing, promoting and providing advice on proper packaging equipment
and materials
► Licensing milk producers and processors
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► Enforcement of the Dairy Industry Act through anti-hawking operations and
prosecutions. This also includes short courses and seminar training for
farmers to produce milk within sanitary conditions and using modern
techniques.
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e. The Kenya Veterinary Association
► The Kenya Veterinary Association (KVA) is the legally chartered and registered
professional association for all veterinary and para-veterinary workers in
Kenya.
► The mandate of the KVA is to act as custodian of the profession, ensuring
proper management of veterinary issues affecting the welfare of veterinarians
with a view toward improving animal welfare.
► Supporting these measures, KVA maintains in-depth checks and balances
structure across the country for sponsoring publications, events and
continuing education programs. They also provide member benefits and
coordination for the government enacted Strategic Plan.
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f. Research Institutes
The Kenya Agricultural and Livestock Research Organization
The Kenya Agricultural and Livestock Research Organization is composed of semi-
autonomous institutes established under the Kenya Agricultural and Livestock Research
Act of 2013.
This Act empowers the Cabinet secretary, in consultation with the KALRO Board to
establish research institutes that may be necessary for the performance of KALRO’s
functions under the Act. The Act also recognizes the role of public universities in
agricultural research and provides for partnerships with them as associate research
institutes. Currently, sixteen research institutes have been established. Under the Act,
the functions of the research institutes under KALRO shall be to:
i. Advise on, and develop appropriate systems to promote balanced, diversified,
and sustained agricultural development and to optimize agricultural production
through adaptive and investigative research
ii. Facilitate the use of improved production technology, and establish adequate
feedback systems from agricultural producers in order to achieve and maintain
national self-sufficiency and export capacities in agricultural products.
It is expected that the Institutes shall conduct research in their respective value
chains and disseminate appropriate information and technologies to intended users.
Although the key mandate of each institute will be restricted, the various research
centers under the administration of each Institute may manage research projects
covering multiple value chains and commodities. The following are the sixteen
research institutes:
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KALRO’s RESEARCH INSTITUTES
Name Location Centers
1. Industrial Crops Research
Institute
Mtwapa: Kilifi County Kikoneni: Lamu County, ICRC,
Mwea: Kirinyaga County, ICRC
Molo: Nakuru County, ICRC
Kandara: Murang’a County
2. Sugar research Institute: Kibos: Kisumu County Kibos, Opapo, Nyando Mumias,
Mtwapa, Kikoneni
3. Tea Research Institute: Kericho County Kericho, Kangaita.
4. Veterinary Research Institute Muguga: Kiambu County Alupe, Muguga North
5. Sheep
Institute
and Goat Research Marsabit County Marsabit, Marimanti, Bachuma,
Macalder
6. Non-Ruminant Research Institute Kakamega town: Kakamega
County
Kakamega, Naivasha
7. Genetic
Institute
Resources Research Muguga South: Kiambu
County
Muguga
8. Biotechnology Research Institute Muguga: Kiambu County Biotech and NARL Kabete
9. Beef Research Institute Lanet: Nakuru County Garissa, Lanet, Mariakani, Trans
Mara
10. Apiculture Research Institute Marigat: Baringo County Perkera, Lenana Training Centre,
Nairobi
11. Dairy Research Institute Naivasha: Nakuru County Naivasha, Ol Joro Orok, Msabaha
12. Horticulture Research Institute Thika: Kiambu County
13. Food Crops Research Institute Trans-Nzoia County
14. Coffee Research Institute Ruiru: Kiambu County
15. Arid and Range Lands Research
Institute
Katumani: Machakos County
16. Agricultural Mechanization
Research Institute
Nairobi County
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Additional Institutions and Laboratories
The International Livestock Research Institute (ILRI) - Kenya
Headquarters-The Hub for Biosciences eastern and central Africa (BecA)
Kenya National Veterinary Laboratory Network: Regional reference
laboratories under the Kenya National Veterinary Laboratory Network are listed
below:
i. Mariakani: Serves Coast Counties (Two satellite laboratories at Ukunda and
Witu)
ii. Eldoret: Serves Northern Rift Valley Counties (Satellite laboratory at Lodwar)
iii. Karatina: Serves Central and Eastern Counties (Satellite also in Isiolo)
iv. Nakuru: Serves Southern Rift Valley Counties
v. Kericho: Serves Nyanza and the Western Rift Valley Counties
vi. Garissa: Serves North Eastern County
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The Central Veterinary Laboratories, Kabete: It contains the:
o Foot-and-Mouth Disease/Vesicular Diseases Laboratory
o Kenya Veterinary Vaccines Production Institute
57. Non-Governmental Actors
Role of NGOs and Development Agencies in the AH sector
Provisions of extension services and
education to SSPs pastoralist on ah
disease and medicines
Building trust on the ground of outside
agencies
Grassroots level data gathering from
livestock keepers
Support national and state government
in policy and strategy development and
implementation
Financial support and
philanthropy
Important research, publication
and data collection on livestock
sector
Acts as interface between local
communities and government
Role of NGOS and
Development
agencies in the AH
sector
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Partnership building between NGOs and international development agencies
powerful to resolve market failures and policy gaps
NGOs have an important role of trust building and education especially in the
ASALS with pastoralists
Improvement in health and outcomes, productivity and reproduction of
animals due to improved access to services.
program: more milk –
making the most of
milk
funder: BMGF
Grantee: ILRI
Objective: Aim to
generate research
evidence on how
informal milk markets
can be leverage to
improve nutrition and
health, especially in
pre urban settings.
LD4D site records 40livestock projects in Kenya by 36 grantees
Main funders BMGF, DFID USAID.
Grantees include academic /research organization (e.g., ILRI), NGOs (e.g.
Save the children UK) private organization (e.g. land O’lakes) or un
agencies (e.g. UNICEF)
Program index-based
livestock insurance
Funder: DFID
Grantee: crown agent
bank
Objective: uses
satellite technology to
protect pastoralists in
remote arid and
drought prone range
lands of Kenya from
the impacts of
extreme weather.
Program: Kenya
diary sector
competitiveness
program
Funder: USAID
Grantee: Land O’lakes
international
Objective: strengthen
the competitiveness of
Kenya’s dairy industry
through increasing
economic revenues in
the entries daily value
chain, particularly for
the small holder
farmers
Objectives of there
work in Kenya
Examples of
livestock related
programs in Kenya
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Acts and Laws Regarding Food Safety and Livestock
The Acts of Parliament directly or indirectly associated with the governing of
veterinary matters include:
i. Veterinary Surgeons and Veterinary Para-Professionals Act - ACT NO. 29 of 2011
ii. Animal Technicians Act - ACT NO. 11 of 2010
iii. Agricultural Development Corporation Act - Chapter 444
iv. Meat Control Act - Chapter 356
v. Dairy Industry Act - Chapter 336
vi. The Agriculture Act - Chapter 318
vii. Animal Diseases Act - Chapter 364
viii. Biosafety Act - ACT NO. 2 of 2009
ix. Cattle Cleansing Act - Chapter 358
x. Public Health Act - Chapter 242
xi. Radiation Protection Act - Chapter 243 (In the case of irradiated Foods)
xii. Food, Drugs and Chemical Substances Act - Chapter 254
xiii. Customs & Excise Act - Chapter 472
xiv. The Standards Act - Chapter 496
xv. Pest Control and Products Act - Chapter 346
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2.3 Market Restraints
Overview
i. Challenging Regulatory Environment across the Value Chain
ii. Limited access to Veterinary services due to low numbers of practitioners and
long distance covered to reach farmers
iii. Lack of knowledge to Veterinary Practitioners on new treatment methods and
Business acumen.
iv. High costs across value chain making it difficult for farmers to access services.
Practitioners have to visit the patients on the farms unlike in small animal
clinics
v. Government Budgetary constraints in this sector
vi. Lack of official Market data making it difficult for stakeholders to make informed
decisions.
vii. Lack of linkages between Pharmaceutical Industry and academicians for market
Research on Animal HealthCare.
viii. Unethical market practice
ix. Unclear value of treatment of animals by Veterinary practitioners to farmers.
Farmers not valuing work of the clinicians due to competence issues.
(Attitudinal factors)
x. Use of traditional methods to treat animals
xi. Lack of drug inspectors / Pharmacovigilance leading to malpractices and
antimicrobial resistance.
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xii. Social Cultural factors and Historical factors e.g. Maasai’s and ASAL See
themselves as practitioners
Animal health service delivery in Arid and Semi-Arid Lands (ASALS)
Animal health service delivery in Arid and Semi-Arid Lands (ASALS) can be a
major challenge due to the harsh and inhospitable climatic conditions in these
regions.
The scarcity of water and vegetation, along with the dispersed nature of the
livestock populations, can make it difficult to deliver veterinary services to these
areas.
However, despite these challenges, there are a number of approaches that can
be taken to improve animal health service delivery in ASALS.
o One approach is to make use of mobile veterinary clinics, which can
travel to remote areas to provide veterinary care. These clinics can
be equipped with basic diagnostic equipment, medicines, and
supplies, and can be staffed by trained veterinarians and animal
health workers.
o Another approach is to train local animal health workers to provide
basic veterinary services in their communities. This can help to
increase access to veterinary care in remote areas, and can also help
to build local capacity to respond to animal health emergencies.
o Another important aspect of animal health service delivery in ASALS
is disease control. Many diseases, such as tick-borne diseases and
outbreaks of infectious diseases like Rift Valley fever, can have a
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significant impact on livestock populations in these areas. A
coordinated approach to disease control, involving the use of vaccines
and other measures to prevent the spread of disease, can help to
reduce the impact of these diseases on livestock and the communities
that rely on them.
In addition to these interventions, it is also important to address underlying
factors that can impact animal health, such as malnutrition and poor herd
management practices.
This can be achieved through the provision of animal health extension services,
which can help farmers to improve their herds' nutrition and management
practices, thereby improving animal health and productivity.
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Constraints to animal health service delivery in Arid and Semi-Arid Lands
(ASALS)
a. Effects of the structural adjustment policies
The provision of Animal Health Care (AHC) in sub-Saharan Africa has been the
responsibility of the state veterinary services for many years. Private veterinary
services were non-existent or, if present, located in more lucrative urban areas.
Livestock services were among the first rural services targeted for privatization under
the structural adjustment programs, particularly in sub-Saharan Africa.
Budgetary allocations for veterinary departments decreased gradually until state
veterinary services became almost dysfunctional. International experts made bold
efforts to retain veterinary regulation and management of epizootic diseases within the
public domain but pushed curative animal health care into a private market. This
restructuring was, however, implemented hurriedly before the establishment of
alternative suppliers within the private sector and the enactment of policies and legal
frameworks that could assure quality of animal health services. To compound the
situation the veterinary profession and authorities were very slow to respond, and the
increasing financial constraints effectively paralyzed government services by the late
1980s and early 1990s.
The combination of poor financial resources and an inadequately organized Veterinary
Services has often led to deterioration in animal health services, with endemic diseases
frequently spreading unchecked. The resurgence and unchecked spread of diseases
such as Peste des petits ruminants (PPR) and Contagious bovine pleuropneumonia
(CBPP) in many parts of Africa can be related to the breakdown of national veterinary
services. Control of ticks and tick-borne diseases such as East Coast Fever (ECF) has
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deteriorated, in many cases along with provision of healthcare to pastoral communities.
As a result, Structural adjustment policies (SAPs) for sector reforms did not result in
adequate provision by the private sector and civil society of essential services and
markets as was intended. The result is that the great majority of the rural poor do not
enjoy access to the range and quality of services and markets that they need to support
a robust livestock related livelihood.
b. Constraints related to infrastructure
Pastoral areas in the horn of Africa are characterized by their large size, limited
development, poor infrastructure and insecurity. Human populations tend to be small,
highly mobile and difficult to reach unless on foot or in a four-wheel drive vehicle.
Besides, given that markets in Kenya are thinly spread, institutions for contract
enforcement are weak, and infrastructure is underdeveloped, the veterinary service
privatization program has had varied impact in different regions, with these marginal
areas receiving minimal attention.
c. Financial constraints and changing government policies
Financial constraints and the changing government policy on provision of services in
many developing countries have severely curtailed the quality and the effectiveness of
veterinary services being provided. The current trend is for the government veterinary
services to be decentralized and for clinical and preventive animal care to be handed
over to the private sector. Whilst this has had some success in areas of high agricultural
potential, professional success rates in rural areas have been low. The impact of this is
being felt more in the ASALs, which are already disadvantaged by having inadequate
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numbers of veterinary personnel, poor infrastructure, high degree of insecurity and
recurrent drought.
Other common diseases in pastoral areas that are a major constraint to livestock
production and which also need to be targeted include Rift Valley Fever (RVF),
contagious caprine pleural pneumonia (CCPP), Foot and Mouth Disease (FMD), mange,
non-specific diarrhea, orf/pox, enterotoxaemia, mastitis, anthrax, black quarter,
ringworm, Peste petits des ruminants and endo and ectoparasites.
Development partner investments involves deregulation and the deployment of
privately operating paraprofessionals commonly referred to as community animal
health workers, is often perceived as a threat to the veterinary profession and may
result in limiting access to international markets for the trade of livestock and livestock
products. Moreover, although livestock owners in ASALs are willing to pay for drugs
and services, the demand for quality products is not satisfied by the existing illegal and
“black market centered” drug supply system. Most of these ASAL livestock owners use
commercial veterinary drugs and, to a lower extent, vaccines from “hawkers”, who
sometimes barter them against goats. While vaccines are not used in most cases
because of poor availability, poor handling and quality reduces the efficacy of those
available. The researchers also noted that the pastoral livestock producers had to walk
long distances to access services and buy these inputs of suspect quality and efficacy.
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d. Weak Legal frame-work and Institutions
The key weaknesses of legal and institutional frameworks that support the livestock
industry include: regulation and facilitation of services such as animal breeding
services, feed production, privatization of veterinary services, regulation of veterinary
drugs, resolution of livestock/wildlife conflicts, quality assurance of livestock inputs and
products, coordination of research and extension, information as well as monitoring
and evaluation of projects and programs. In addition, there are no mechanisms in place
to identify the constraints to livestock production, the service needs of poor livestock
keepers and the ways and means to deliver them at affordable costs. The policy
priorities and directions for service delivery often get determined by the biases and
beliefs of the decision and policy makers. Moreover, lack of strong institutional support
such as provision of credit facilities, research and policy, legal and regulatory
frameworks has exacerbated agricultural woes. Unfortunately, there is no consensus
among the livestock sector professional as while veterinary scientists argue that it is
the poor animal health which is the main constraint to livestock
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e. Research and extension
Institutions of higher education, research and extension are, in general, poorly staffed,
ill equipped and under-funded to provide the scientific and technological foundations of
a structural and sustainable transformation of the national food and agricultural system.
As a result, these systems remain largely ineffective for developing and extending
technologies that respond to farmer’s needs. Kenya is trying to revitalize its extension
services.
a) Low-input low-output subsistence production system dominates the ASALs
b) Pastoralists, primarily low-income earners, predominantly see livestock as assets
to be maintained and expanded, only selling, when necessary, rather than when
they could get the best price
c) Pastoralism accounts for 60-65% of Kenya’s meat supply and 80-90% of the red
meat consumed in Kenya
d) Lack of information across the supply chain undermines pastoralists access to
and benefit from formal markets
e) Highly vulnerable climate change, Kenya’s pastoralists have been affected by
consecutive droughts in recent years
67. f. Access to Financial Services
Limited uptake by Small Scale Producers (SSPs) and pastoralists, hindering their
ability to buy quality inputs
Access to financial services for actors in the livestock value chain remains a challenge,
especially for SSPs and pastoralists. Private financial institutions mainly serve large
dairy operations but coverage of smaller and remote actors is currently left to public
institutions and government-led programmes.
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ACCESS TO FINANCE
Low access to agricultural finance;
15% coverage (formal and
informal), despite high ranking in
Doing Business index regarding
access to credit regulations.
High cost of credit for players along
the livestock value chain.
Most affected groups: SSPs,
pastoralists, women and youth, who
lack collateral required by
conventional financial institutions.
Majority from this group access
credit through CBOs, which is
expensive and insufficient.
The Agricultural Finance
Cooperation (AFC) established by
the GOK in 1963 to provide
affordable credit to farmers,
struggles to meet demand and has
limited coverage in the ASALs.
Examples of financial institution
providing credit to livestock farmers:
the Kenya livestock finance trust (K-
lift) equity bank, Kenya Woman
Finance Trust, Family bank
Current depreciation trend of the
Kenyan shillings pauses a challenge
for actors relying on imports
LIVESTOCK INSUARANCE
uptake of insurance< 1% across
agricultural population
only a few insurance companies offer
livestock insurance on commercial
bases and mostly cover high value
daily animals
Kenya Livestock Insurance Programme
(KLIP) launched by the GOK in 2015 to
protect pastoralists against climate
shocks through subsidized satellite-
based index insurance for livestock. As
of July 2018, programme had paid
cash 400MN in premium and over Kshs
700mn in payouts 32k beneficiaries.
Causes of limited uptake of livestock
insurance common across markets:
► Risk associated with livestock
farming such as drought and
diseases
► Limited awareness of insurance
products
► Inadequate date for designing
insurance products
► Inadequate capacity of SSPs to
pay premiums
► High cost of delivery of
insurance services, especially in
the ASALS
Source 1.: National Livestock Policy 2019 2: AFC Baseline Survey Report 3: livestockkenya.com 4: GoK
68. g. Access to market data and extension
Suboptimal management and dissemination of market data and extension services
The lack of credible market information is especially significant in remote livestock markets.
Advancements in technology and infrastructure are key to improve the access of livestock
producers to market data and extension services.
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ACCESS TO LIVESTOCK MARKET DATA
An ILRI study from 2017 found that the
collection and dissemination of livestock
market data, while widespread, is
currently suboptimal.
Lack of coordination and high costs of
data collection efforts due to technical
and infrastructural challenges, leading to
an unnecessary information asymmetry
along the value chain, uniformed HH
decision-making, and poor service
delivery.
Advances in ICT have created new
opportunities for Innovative ways to
improve access to market data and
services.
The Kenya Livestock Marketing Council
(KLMC) aims to provide reliable market
information to livestock producers and
traders across the country. The
organization supports 42 markets being
monitored under the National Livestock
Market Information system (NLMIS)S, a
unified system of information on prices of
different livestock species.
TRAINING & EXTENSION SERVICES
Livestock extension is the mandate of the
county governments while the national
government formulates policy, standards
and builds capacities of service providers.
Other extension service providers: agro-
veterinary pharmaceutical companies,
animal feed manufacturers, milk
processors, NGOs and CBOs e.g. World
Bank Kenya Agriculture Productivity and
Agribusiness Project (2009-2015)
Limited collaboration among extension
service providers leading to duplication
and conflict of interests.
Inadequate collaboration between
research, training and extension, results
in limited access and poor quality of
services.
Inadequate staffing and funding for
delivery of services at county level, while
FAO recommends a 1:400 extension
worker farmer ratio, Kenya’s ratio is
1:700 for intensive mixed farming system
1:640 for agro-pastoral system and
1:1000 for pastoral systems.
Source 1: National Livestock Policy 2019 2: ILRI study 3: Kansas City State University Study 4: World Bank Project
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h. Market Imperfections and Asymmetric Information in
the Animal Healthcare Market
The framework of incomplete market information can be applied to the animal
healthcare sector to analyze the service-seeking behavior of livestock farmers. In a full-
information market, livestock farmers seeking healthcare services of a given quality
should obtain them at the lowest cost possible. Likewise, income-maximizing animal
healthcare service providers should be able to assess the farmers’ willingness to pay
and charge the maximum fees possible. However, in a market with information
imperfections, livestock farmers may have a general knowledge of the price spread but
not of the actual fees charged by each service provider. Consequently, they choose an
optimal amount of search, balancing the cost of search with the amount of savings from
finding a lower price. This strategy is especially common when there is a wide spectrum
of service providers to choose from.
Animal healthcare service providers evaluate the cost of clinical and prophylactic
services based on the nature of the disease, qualification of the healthcare practitioner,
means of transportation, and perceived wealth of the client.
A client’s ability to pay is assessed by such criteria as type of housing, breed of animals,
and farm layout influences the fees for clinical services. Accordingly, the fees charged
for a given service vary a great deal both within and across different service providers.
Most livestock farmers are either unable (or do not bother) to assess the professional
qualification of animal healthcare service providers.
The title “doctor,” meant for a qualified professional veterinarian, is used for all service
providers, irrespective of their qualifications. The paraprofessionals working with the
professionals often observe the rates charged by their supervisors for given cases and
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subsequently use these as guidelines for their own fee structures. Given the farmers’
inability to differentiate between a professional veterinarian and a paraprofessional,
uniform charges are often levied to specific clients.
Most animal healthcare practitioners do not clearly itemize their charges into
transportation costs, professional fees, and margins on drugs. In fact, few professional
veterinarians and paraprofessionals fix their professional fees for cases, even though
guidelines are provided by the Kenya Veterinary Association (KVA). The general trend
is to consolidate the charges into a single fixed fee, and farmers are often made to
believe they are paying for the drugs rather than for a professional service. As a result,
livestock farmers face ex ante search and information costs in the animal healthcare
delivery market.
It is hypothesized that transaction cost is one of the key factors influencing the choice
of animal healthcare service provider.
The distance to the nearest alternative clinic run by a paraprofessional and frequency
of use of animal healthcare services positively influence the probability of consulting a
veterinarian. Professional qualification is not critical in the choice of service provider.
The density of veterinarians in a particular zone, frequency of transactions, ethnicity of
a service provider, and frequency of previous contact influence the probability of
consulting a professional veterinarian and Para veterinarians. Service providers of
similar ethnic background to their clients are likely to have a higher degree of trust
from the farmers. Following repeated transactions, farmers are better able to assess
the quality of services provided by a given provider. Trust based on reputation is thus
built among the transacting parties. Likewise, members of a similar ethnic group belong
to the same social networks.
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2.4 Market Opportunities
Overview
i. Increase in significance of Livestock production in Kenya by the Government
and Farmers leading to focus on Animal HealthCare. Improving Animal Health is
fundamental to improving overall productivity. Need to establish disease free
zones to improve export trade in Livestock.
ii. Farmers acknowledging professionalism in Animal HealthCare
iii. Growing Companion animal / Pet Industry
iv. Great focus on private sector by Veterinary practitioners
v. Partnership of Veterinary practitioners and farmers with the Pharmaceutical
Sector which is currently very low.
vi. Working closely with Farmers Cooperatives and Livestock producers to improve
accessibility of Veterinary services to small scale livestock owners thus
economies of scale in supply of drugs.
vii. Focus on ASAL areas. It is in this Arid and Semi-arid land that livestock tend to
be at greatest risk from diseases and drought. Great potential in working with
NGO’s in this area.
viii. Training of Veterinary practitioners in Business Acumen by the Pharmaceutical
Industry
ix. Focus on ranches and higher rainfall areas of the Country with high potential in
Dairy Industry.
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2.5 Key Challenges in the Market
Overview
i. Animal Health specialists are considered as a measure of last resort.
ii. Intense price competition (due to generics, parallel imports counterfeits
etc.) within the industry
iii. Kenya’s National Economic difficulties and prolonged periods of drought
iv. Tax burdens and lack of adequate product protection across the value
chain.
v. Large number of informal unregistered suppliers of Veterinary products
vi. Fragmented Regulatory sector that lacks enough human resource etc
vii. Few Veterinary practitioners in the private sector
viii. Lack of key market data to assist in decision making along the entire value
chain.
ix. High costs of animal healthcare.
x. Profit margins are low coupled with high cost of distribution expenses
xi. Antimicrobial resistance due to non-professionalism in the sector
73. 3. MARKET SEGMENTATION AND GEOGRAPHICAL
ANALYSIS
1. Structure of the Veterinary (Animal) Pharmaceutical Industry
The veterinary pharmaceutical industry consists of three segments:
The manufacturers/importers,
The distributors/wholesalers
The retailers.
The veterinary pharmaceutical industry interconnectedness with other sectors and its
significant investments in technology, research, and development mean that the
industry’s gains can have an outsized effect on the economy as a whole. The domestic
veterinary pharmaceutical industry in Kenya shows considerable strengths and has
significant opportunities for growth and development.
As per the Kenyan Government, the veterinary pharmaceutical products are
categorized according to particular levels:
A. Veterinary pharmaceuticals
B. Biologicals
C. Alternative medicines
D. Nutrients (Pre-mixes)
E. Veterinary pesticides
F. Equipment and materials of veterinary relevance
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