How profitable is Layers chicken farming in Kenya

Kenya has an estimated population of 5.58 million layers according to the 2019 census results. Together with the indigenous chicken, they supply 1.6 billion eggs per year according to the FAOSTAT, 2019.  In terms of trade, their value of the eggs was $167.4 million.

 In terms of demand, the nation’s annual per capita consumption of eggs is 45 eggs per person. The domestic supply is inadequate, excess demand is imported from her neighbouring trade partners especially Uganda. This unfilled demand opens a profitable opportunity for local farmers to raise layers for profits.

Key assumptions for the Profit Analysis

In this post, we give you a cost and profit analysis for rearing 100, 200, 500 and 1000 layers chicken. You will raise exotic/hybrid birds in a confined chicken house.  To get the maximum profits, you will feed them commercial feed and follow a vaccination schedule to control diseases. You will raise them for 21 weeks, beyond which period their production declines.

The cost-benefit analysis makes the following assumptions for input quantities, prices for selling chicken and eggs and the costs of buying feed and vaccine supplies.

  • The selling prices for an ex layer chicken, a tray of eggs and a sack of chicken manure are Ksh 400, Ksh 320 and Ksh 30, respectively. The analysis assumes a 10 per cent loss of eggs and chickens during the production period.
  •  The buying price of one-day-old chicks is Ksh 100. This analysis assumes you will brood them for 21 days using kerosene lamps. A single one will provide enough warmth for 100 chicks. You will require 6 litres of kerosene, at Ksh 70 per litre according to the Energy regulatory commission (ERC). An alternative is using a 100 watts electricity bulb.
  • We include a vaccination schedule in the analysis. The Fowl Typhoid and Fowl Pox vaccines are available in packages of 1,000 dozes only. Once you broke the seal, you cannot reuse the vaccines.
  • You need three types of commercial chicken feed.
  1.  60g of chick Mash er chick for the first eight weeks (6 kg for 100 chicks per day for 56 days). The cost of buying commercial a 70kg bag is KES 3,300
  2. 90g per bird from week 9 to week 19 (9 kg for 100 birds each day for 77 days) of growers mash feed.  The cost of growers mash is KES 2,400 for a70kg bag.
  3. 120 g of layers mash feed per laying hen from week 20 to week 84 (12 kg for 100 birds each day for 455 days.) The cost of Layers Mash per 70kg bag is KES 2,550.   
  •   The cost of labour to hire one person is Ksh 4,000 per month. You will need one for 21 months. For raising many chickens like 1000 birds, you will need at least two workers.
  • Each Round Feeder can serve 30 chicks. A single round drinker will have 50 chicks in the poultry house. To collect, store and transport eggs, use the plastic or the carton egg trays. A plastic one is Ksh 88, while the carton one’s trade for Ksh 40 from leading online shops like Jumia.

Profit analysis for rearing 100 Layers in Kenya

The following is the projected revenue and cost of raising 100 layers of chicken in Kenya. The analysis uses the current market prices and standard feed and nutrition requirements. 

The overall sales revenue for selling the ex-layers, eggs and poultry manure is Ksh. 313,090. It assumes a loss of 10 per cent for both eggs and birds. Poor feeding, hygiene and vaccination management can cause more loss than used here. Better practices such as value addition will give you more revenue.

The total operating cost of raising 100 layers is KSh. 276,940 excluding capital expenditure. The biggest portion, 95 per cent of the total cost, is incurred for buying chicken feed. Vaccines and treatment which spend KSh. 1680 only.

The gross revenue for raising100 egg-laying birds is KSh. 36,150. After a further deduction of Ksh 84,000 additional cost of labour, you will get a net loss of KSh. 47,850. You can improve your profits by securing better farm gate prices.  For instance, a simple addition of Ksh 30 per tray would yield a gross profit of Ksh 96,350 and a net profit of Ksh 12,350.

For Beginners in poultry keeping, you will incur a one-time capital expenditure of Ksh 72,030. It will be for constructing a chicken house and getting brooding equipment, waterers, feeders and egg trays.

Profit analysis for rearing 200 Layers in Kenya

The following is a cost-benefit analysis for 200 layers of chicken in Kenya. The analysis uses the current market prices and the above assumptions.

The revenue of selling ex-layers as live birds, eggs and poultry manure is Ksh. 626,180. Most of this id from selling 1,720 trays of eggs at Ksh 550, 400.

Most operating costs of raising them is getting chicken feed at KSh. 529,100. The total operating cost is Ksh 552,780 giving you a gross profit of Ksh 73400.  Similar to raising 100 chicken, the labour cost is Ksh 84,000 getting you a net loss of Ksh 10,600.

As a beginner, you will incur a one-time capital expenditure of Ksh 144, 060. The overall costs and profits for keeping 200 laying chickens are as shown below.

Profit analysis for rearing 500 Layers in Kenya

The following is a projection of revenues and costs of raising 500 layers of chicken in Kenya. The analysis uses the current market prices and the above assumptions for feed quantities and vaccines.

The gross revenue for 500 layers poultry farm is Ksh 1,565,450.  Key sales are from selling 43,000 trays of eggs at Ksh 320 each for each tray.

The operating costs for a 500 layers chicken are KSh. 1,364,000. It will give you a gross profit of Ksh 201,450 and a net profit of Ksh 117, 450 after deducting labour costs of Ksh 84,000.

As a startup venture, you need a capital expenditure of Ksh 366.525 for a fully functional 500 chicken house.  The overall costs and profits for keeping 500 laying chickens are as shown below.

Profit analysis for rearing 1000 Layers in Kenya

The following is a gross margin analysis for a 1,000 chicken farm that raise eggs.  It uses the current market cost, prices and the above assumptions required farm inputs and labour. 

You will get a total revenue of Ksh 3,130,725 after marketing your ex-layers, all eggs and poultry manure.

The operating cost for your 1000 chicken farm is KSh. 2,636,900 excluding the one-time capital expenditure of Ksh 455,100 for beginners. The most significant expense is buying commercial chicken at a total value of Ksh 2,607, 800.

The projects’ gross revenue is Ksh 493,850. The only additional cost is labour at Ksh 168,000 getting you a net profit of Ksh 325,850. The overall profits for keeping 1000 layers are as shown below.

Samuel K

Samuel Kibicho is passionate about profitable and safe agriculture as a tool for wealth creation and food security. He is the founder of Agcenture and consults in market systems development (MSD), program management and result measurement, monitoring and evaluation for sustainable agriculture & rural development projects.

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1 Response

  1. October 8, 2020

    […] It is unprofitable to rear layers chicken if you keep less than about 300 birds. See the full analysis for layers chicken. […]

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