The Dynamics of Livestock Trade in Northern Kenya: Trust and Social

Relations in Market Networks.

Hussein A. MahmoudUniversity of Kentucky

Project Description

Examines social relations of livestock trade in northern Kenya

Explores how trust operates:– in the context of economic and other

uncertainties,– encourages certain kinds of social relationships,– facilitates livestock trade, and – reduces market transaction costs.

The Study Area

Northern Kenya (Moyale), Southern Ethiopia (including the

administrative units of Moyale, Mega, Yabello, Nagelle, Arero, and Hagere-Mariam,

Nairobi (Njiru market)

Preliminary findings

Trust relationships (northern Kenya and southern Ethiopia):– Socioeconomic status (wealth)

• big Ethiopian traders give credit to Kenyan traders

– Age– Ethnicity

Age of cattle traders, Moyale, Nairobi, 2001

Age of cattle traders

Age of traders Mean=33 years, N=70

55504842383532302826242218

Fre

qu

en

cy

12

10

8

6

4

2

0

Preliminary findings (cont’d)

Keep a written account of trading activities– Yes 44%– No 56%

Own a bank account– Yes 19%– No 81%

Ethnic composition of cattle traders, Northern Kenya, 2001 (N=70)

99

Arsi (1%)

Burji (63%)

Gabra (9%)

Garre (1%)

Boran (20%)

Ethnic trading relationships (N. Kenya/S. Ethiopia) Boran and Burji in southern Ethiopia

– good relationship

Boran and Burji in northern Kenya– strained relationship

Ethiopian Boran and Kenyan Burji– excellent business relationship

*NOTE: trading relationships affected by larger conflicts in study region

Trading Networks:

Language spoken PercentBoran 100 %Swahili 91 %Burji 61 %Amharic 36 %English 19 %Somali 6 %Koira 1 %Rendille 1 %

Trading Networks (cont’d)

# of languages spoken Percent

5 14 403 362 191 4

Scale of categories of cattle traders in Southern Ethiopia

Herders Smalltraders

Mediumtraders

Bigtraders

>1cattleperiodic-ally

2-4cattleweekly

10-20cattleweekly

> 50cattleweekly

The Cycle of Cattle Trade

The Thursday - Wednesday Cycle– Dubluq Market - Friday– Mega Market - Saturday– Moyale Market - Daily (Wednesday, major)

Main Actors in cattle trade

Herders (Ethiopians and Kenyans) Small traders (Ethiopians and Kenyans) Medium traders (Ethiopians and Kenyans) Big traders (Ethiopians and Kenyans) Transporters to Nairobi (Kenyans) Brokers in Moyale (Ethiopians and

Kenyans)

Main Actors in cattle trade (cont’d) Brokers in Nairobi (from northern Kenya) Wholesalers in Nairobi (multi-ethnic) Transporters in Nairobi (multi-ethnic) Butchers in Nairobi (multi-ethnic)

Cattle quality and credit

No relationship Further investigation required Credit is determined by volume of animals

Constraints in cattle trade (N. Kenya/S. Ethiopia) Security

– Political differences– Banditry on Moyale - Isiolo highway

Trucking costs– unstable and highly unpredictable– determined by number of livestock in Ethiopian

markets

Transport Costs, Moyale - Nairobi,

February-June, 2001

Kenya Shillings

70000.00

65000.00

60000.00

55000.00

50000.00

45000.00

40000.00

35000.00

30000.00

Missing

Co

un

t30

20

10

0

Trucking costs:

Constraints in cattle trade (N. Kenya/S. Ethiopia) (cont’d)

– Buying arrangements in Nairobi

Positives

An increasing trade– Cattle movement, Moyale-Nairobi, 1996-2000

YEAR

20001999199819971996

Me

an

SA

LE

S

50000

40000

30000

20000

10000

Positives (cont’d)

Trader Associations (at least three in Moyale, one in Marsabit, and one in Nairobi)

National organization for livestock traders Improved dialogue on border trade relations

between Ethiopia and Kenya

Positives (cont’d)

Experienced cattle traders:– Ave. # of years involved in livestock trade = 8

years– Minimum 1 year, Maximum 26 years

Further research needed

Cattle quality and credit facility Insecurity and cattle trade Women cattle traders Butchers and wholesalers in Nairobi Cattle credit in Nairobi, why?

– Problems involved

Buying relationships with herders and herder benefits

Further research needed (cont’d) The role of trader associations Trust enforcing institutions

– local– legal