How profitable is Indigenous chicken farming in Kenya?

 How profitable is Indigenous Chicken farming in Kenya

Indigenous chicken farming is the most feasible in Kenya. Its meat and eggs have higher retail prices compared to exotic products. Besides, the cost of producing them is lower since they are resistant to common disease outbreaks. The sector is a priority value chain in 29 of the 47 counties in Kenya. Research institutions like the KALRO, continually develop improved chicken breeds like the KARI Kienyenji.  Their maturity period is shorter and has higher yields. A mature chicken can weigh almost twice that of hybrid types. As a result, their live birds’ prices are KES 800 and KES 600 per cockerel and hen, respectively.

Typically, subsistence kienyenji chicken farming is common in rural areas. It uses the free-range and semi-intensive production systems; Farmers follow non-routine feeding and disease control programs. They feed them with grains such as maize, domestic waste and kale leaves. Disease control is by keeping the homestead and poultry houses clean.

There is a rising demand for quality white meat and organic eggs. Consumers believe that traditional breeds have higher nutrition and better taste than hybrid broilers and layers. It has attracted many poultry farmers to raise them intensively in modern poultry houses. They also follow a strict feeding and vaccination program. But how much cost and profits can you make from keeping them in Kenya? This post answers your question. It has costs and benefits analysis for 100, 200, 500 and 1000 indigenous chicken.

Key assumptions for the indigenous chicken farming Profit Analysis

This analysis makes the following assumptions for the required amounts and prices for chicken feed, vaccines and other inputs.

  • The farmer’s chicken stock comprises 50% cockerels and 50% layers.
  • There is a 10% loss of cockerels, hens and eggs.
  • The selling prices are Ksh 800 and Ksh 600 for mature cockerels and ex layer hens. A tray of eggs is Ksh 450 and manure bag is Ksh 30.
  • Labour requirements are 1person at 4,000 monthly for 21 months.
  • The Common vaccines schedule is in the analysis as a precautionary measure.
  • The cost of one-day-old chick is KES 100                    
  • The maximum amount of feed fed to chicks per day from week 1 to week 8 is 60g
  • The maximum amount of feed fed to growers per day from week 9 to week 19 is 90g
  • The maximum amount of layers mash fed to hens only per day from week 20 to week 84 is 120g.

Profit analysis for rearing 100 Kienyenji chickens in Kenya

The following is the expected revenue and cost of raising 100 traditional chicken. It uses current market prices and standard feed requirements.

Your overall sales revenue after selling mature birds, eggs and poultry manure are Ksh. 258,890. It assumes a loss of ten per cent loss of the birds and eggs. Poor feeding, hygiene and vaccination can lead to more losses. Observing better farm practices like disinfecting poultry houses and value addition will give you more sales revenue in the long run.

The operating cost of raising 100 traditional birds is Ksh 165,790 without capital expenditure. The large portion, 92 per cent, is for buying chicken feed.

The gross revenue for raising100 indigenous chicken is Ksh 92,600. After a further deduction of Ksh 84,000 additional cost of labour, you will get a net profit of Ksh 8,600.

A beginner in poultry keeping will incur an initial capital investment of Ksh 72,030; for a chicken house, brooding equipment, and other reusable items like feeders.

Profit analysis for rearing 200 indigenous chicken in Kenya

The following is a cost-benefit analysis (CBA) for raising 200 indigenous chickens for meat and eggs in Kenya. It uses the current market prices and the above-given assumptions.

The revenue of selling mature live birds (mature cockerels and hens), poultry manure and eggs is Ksh 516,780.  The bulk of it is after selling eggs as the primary product. You can increase your profits by incubating the eggs and selling vaccinated one-day-old chicks. You would increase the price of one egg from Ksh 15 to Ksh 100.

The larger portion of the operating is buying chicken feed at Ksh 306,800. The total operating cost of the project is Ksh 330,480 to get a gross profit of Ksh 186,300.  After considering the cost of monthly labour of Ksh 4000 for  21 months, you will pocket Ksh. 102,300 net profit.

As a beginner, you will incur a one-time capital expenditure of Ksh 144,060.

Profit analysis for rearing 500 indigenous chicken in Kenya

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

The gross sales revenue for 500 indigenous chicken farm is Ksh1, 294,200.  The most significant sales are from selling eggs.

The operating costs for raising 500 chicken is Ksh 810,850. It will give you a gross profit of Ksh 483,350 and a net profit of Ksh 399,350 after deducting labour costs of Ksh 84,000.

As a startup venture, you need a capital expenditure of Ksh 277,550 for a fully functional 500 chicken house.  The overall costs and profits for keeping 500 indigenous chickens are as shown above.

Profit analysis for rearing 1,000 indigenous chicken in Kenya

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

You will get a total revenue of Ksh 2, 223,750 after marketing your live birds, eggs and poultry manure.

The operating cost for your 1000 chicken farm is Ksh 1,620,600 excluding the one-time capital expenditure of Ksh 455,100 for beginners. The most significant expense is buying commercial chicken feed at a value of Ksh 1,501,500.

The projects’ gross revenue is Ksh 603,150. The only additional cost is labour at Ksh 168,000 getting you a net profit of Ksh 435,150. The overall benefits for keeping 1000 layers are as shown above.

 The gross and net profits of raising indigenous chicken assume the worst-case scenario. The conventional and best-cases will give you a higher income.  

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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2 Responses

  1. October 16, 2020

    […] Indigenous chicken farming is the most profitable in Kenya. Besides, its meat and eggs fetch higher retail prices compared to the exotic types. See the full analysis for IC. […]

  2. October 20, 2020

    […] chickens are the most profitable to raise. They experience low infection rates to common poultry diseases. Besides, their meat and […]

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