Veterinary services and breed improvement
Type 3: Borderland with fragile context and underdeveloped regional integration infrastructure.
Business Model Description
Establish a network of private and/or cooperative veterinary clinics and mobile veterinary services linked to community animal health workers (CAHW), potentially leveraging existing agro-vet shops. Deliver vaccinations, treatments, artificial insemination services, and animal health advisory through a fee-for-service model. Target pastoralists, agro-pastoralists, and emerging commercial livestock farmers across the borderland. Finance operations through blended capital—grants for capacity building, public subsidies for inputs, private investment in service delivery infrastructure.
How is this information gathered?
Cross-border investment opportunities with potential to contribute to sustainable development are based on Borderlands SDG Investor Maps.
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Region
Sector Classification
Food and Beverage
Food and Agriculture
Borderland development need
Livestock is the main source of livelihood in the borderland, with over 5 million head of cattle, goats, sheep, and camels. However, drought, disease, and poor veterinary services lead to high mortality and low productivity. Most animals are sold live, with minimal local processing, limiting income and adding costs. Insecurity and weak infrastructure further disrupt markets. With 45% of the population facing acute food insecurity, improving livestock systems is critical to resilience and economic growth. (11, 20, 21, 22)
Borderland policy priority
Both CIDP and KIDP3 highlight livestock as a driver of resilience, food security, and economic growth. In West Pokot, the County plan focuses on breed improvement, feed reserves, and operationalizing processing facilities such as the Nasukuta abattoir to retain value locally. In Karamoja, the local government prioritises breeding, disease surveillance, and value addition in meat, milk, and hides. Both aim to improve market access, veterinary services, and cross-border trade, especially for youth and women in pastoral systems. (1, 2)
Gender inequalities and marginalization issues
Livestock production and processing offer key entry points for empowering women and marginalized groups, who often manage small ruminants and poultry. These activities generate income, support food security, and are more accessible to those with limited land or capital. Expanding value chains and services tailored to women and youth can drive inclusion and build resilience. (12, 13)
Investment opportunities introduction
The borderland offers high-return investment opportunities in livestock production and processing, from meat and dairy value chains to animal health and feed systems. With strong local demand, large herd sizes, and policy backing, investments in abattoirs, milk processing, vet services, and feed supply can unlock value, boost incomes, and strengthen regional trade. (1, 2)
Key bottlenecks introduction
Recurrent droughts and disease outbreaks weaken productivity, while limited access to quality feed and vet services constrains herd health. Insecurity (driven by cattle raiding, border tensions, and weak enforcement) disrupts markets and discourages investment. Poor infrastructure and low processing capacity further limit value addition. (1, 2, 9, 12)
Meat, Poultry and Dairy
Pipeline Opportunity
Veterinary services and breed improvement
Establish a network of private and/or cooperative veterinary clinics and mobile veterinary services linked to community animal health workers (CAHW), potentially leveraging existing agro-vet shops. Deliver vaccinations, treatments, artificial insemination services, and animal health advisory through a fee-for-service model. Target pastoralists, agro-pastoralists, and emerging commercial livestock farmers across the borderland. Finance operations through blended capital—grants for capacity building, public subsidies for inputs, private investment in service delivery infrastructure.
Business Case
Market Size and Environment
< USD 50 million
The borderland region hosts over 5 million livestock, including cattle, goats, sheep, and camels. Limited access to veterinary care, rising disease prevalence, and demand for improved genetics create a large, underserved market. Even partial service coverage—reaching 2–3 million animals—yields strong business potential. (32)
Indicative Return
> 25%
Private and cooperative providers offering fee-based vet care, input sales, and artificial insemination services can achieve 30–40% ROI. Mobile clinics and CAHW networks maintain low operational costs, while demand remains high. Examples from Kenya and Uganda show profitability from Year 2 with scaling potential by Year 3. (32)
Investment Timeframe
Short Term (0–5 years)
Revenue from basic services like deworming, vaccinations, and artificial insemination begins in Year 1. Break-even is expected within 2 years for mobile models, and 3 years for hubs with breeding centers. Breed improvement outcomes take longer, but cash flow from inputs and services begins almost immediately. (32)
Ticket Size
< USD 500,000
Market Risks and Scale Obstacles
Business - Supply Chain Constraints
Capital - Limited Investor Interest
Capital - Requires Subsidy
Expected Financing Model
Blended financing (risk sharing and public support)
IOA Business Criteria
Strong demand for animal health and breeding services exists among 5M+ livestock owners; affordability and trust increase with subsidies, cold chain, and trained CAHWs. (27, 29)
Focuses on fee-based delivery of vet care, artificial insemination, and breeding via mobile clinics, vet hubs, and CAHW networks across West Pokot and Karamoja. (27, 29)
Can expand through franchise or cooperative models; early pilots like USAID-funded agrovet agents and KCSAP goat breeding show replicability. (27, 29)
Mobile vet services and subsidized drug sales have shown uptake in Karamoja; CAHWs and PPPs are successfully operating in Kenya. (27, 29)
Impact Case
Sustainable Development Need
Livestock diseases reduce productivity and cause high mortality; current vet service coverage is low, with only 25 veterinarians across Karamoja and poor access to essential medicines. (1, 2, 28)
Breeding services are largely unavailable, and artificial insemination is unaffordable and logistically complex, limiting herd improvement. (27, 28, 29)
Poor veterinary infrastructure leads to outbreaks and zoonotic risks; limited cold chain and diagnostic labs hinder disease prevention and response. (1, 2? 29)
Gender & Marginalisation
Women and youth have limited participation in animal health services due to training, mobility, and cultural barriers; few women are engaged as CAHWs or in veterinary sales. (27)
Pastoralist women face exclusion from decision-making in livestock breeding and treatment, despite their central role in animal care. (27)
Marginalized groups lack access to quality services due to distance, cost, and distrust in drug quality, limiting their ability to protect livestock assets. (23, 24)
Expected Development Outcome
Improved animal health and productivity will boost household incomes, enhance food security, and support climate-resilient pastoral and agro-pastoral livelihoods. (12, 13)
Access to quality veterinary and breeding services will strengthen disease control and reduce livestock losses during climate shocks. (27)
By improving economic opportunities and reducing livestock-related losses, the business can ease intergroup competition over scarce veterinary inputs and enhance cross-border collaboration. (27)
Gender & Marginalisation
Training and equipping female Community Animal Health Workers (CAHWs) will create new income streams and challenge gender norms in animal health service provision. (27, 29)
Targeting marginalized pastoralist groups with mobile veterinary services ensures equitable access to animal care in remote areas. (27, 28)
Affordable breeding services and subsidized treatment will help smallholders and women-led households improve livestock productivity and economic resilience. (6, 12, 13, 27)
Primary SDGs addressed
1.1.1 Proportion of the population living below the international poverty line by sex, age, employment status and geographic location (urban/rural)
In 2020, the poverty rate was 66% in Karamoja and 57% in West Pokot. (1, 2)
The government of Uganda aims to reduce the incidence of poverty in Karamoja to 42.2% over the next five-year period. (1)
2.3.1 Volume of production per labour unit by classes of farming/pastoral/forestry enterprise size
N/A
N/A
10.2.1 Proportion of people living below 50 per cent of median income, by sex, age and persons with disabilities
N/A
N/A
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Public sector
Indirectly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Public sector
Outcome Risks
Increased reliance on imported drugs and AI supplies may create dependency and undermine the development of local veterinary manufacturing capacity.
Without affordable pricing strategies, services may remain inaccessible to the poorest pastoralists, exacerbating inequality and livestock health disparities.
Gender-blind delivery models risk sidelining women, who are often excluded from training and decision-making in livestock care, limiting empowerment outcomes.
Uneven access to improved breeds or services could trigger perceptions of favoritism, inflaming local tensions or disputes over livestock value and ownership.
Impact Risks
Low uptake of veterinary services due to cost, distrust, or lack of awareness could limit improvements in livestock productivity and household resilience.
Poor handling of biological waste and expired drugs from clinics may harm ecosystems and contaminate water sources in fragile rangeland areas.
If women's roles in animal care are ignored in training and delivery models, they may be excluded from benefits, reinforcing gender gaps in livestock value chains.
IMP Impact Classification
What
Improved livestock health and productivity, leading to enhanced food security, income, and resilience in pastoralist and agro-pastoralist communities.
Who
Pastoralists, women, and youth in West Pokot and Karamoja, especially those underserved by formal veterinary systems.
Risk
Low service uptake, gender exclusion, supply chain inefficiencies, and ecological strain from increased livestock densities.
Enabling Environment
General Policy Environment
Karamoja Integrated Development Plan 3 (KIDP3): Prioritizes livestock productivity and veterinary services to reduce vulnerability. Emphasizes breeding improvement, animal health, and investments in disease surveillance infrastructure. (1)
West Pokot County Integrated Development Plan (CIDP): Identifies veterinary services and improved animal breeds as key to agro-pastoral development. Commits to expanding livestock vaccination coverage and supporting animal health infrastructure. (2)
Kenya Livestock Policy (Sessional Paper No. 3 of 2020): Promotes public-private partnerships in veterinary service delivery and supports breed improvement through AI and bull schemes. Encourages private vet practices in underserved areas. (33)
Uganda National Agriculture Policy (2013): Focuses on improving animal health services and promoting genetic improvement. Encourages decentralized veterinary services and cross-border coordination on disease control. (34)
General Cross-border Trade Policy and Regulatory environment
East African Community SPS Protocol (2020): Sets regional sanitary and phytosanitary standards, supporting cross-border coordination on disease surveillance, vaccination, and vet drug quality. (39)
IGAD Protocol on Transhumance (2021): Facilitates cross-border livestock movement and access to grazing and water, requiring animal health certification, thus creating demand for harmonized veterinary services. (40)
EAC Customs Management Act (2017): Regulates cross-border veterinary inputs, livestock trade, and disease control enforcement, critical for legal movement of vet drugs and AI materials. (41)
IGAD Regional Animal Health Strategy: Aims to improve regional coordination on disease surveillance, veterinary infrastructure, and control of transboundary diseases, vital for expanding mobile vet services. (42)
AfCFTA Agreement (2021): Encourages harmonized standards and supports intra-African trade in veterinary pharmaceuticals and livestock genetics, boosting scale and sustainability of regional animal health businesses. (43)
Capital structure and funding
Sources of Capital: Capital for existing vet services largely comes from donor-funded programs (e.g., USAID, FAO, SNV), county governments, and NGO subsidies. New opportunities will require blended financing, combining grants for training and infrastructure with private equity for delivery models. (44, 45)
Average Capital Size: Investment ticket sizes range from $50K for mobile vet units to $500K+ for regional service hubs with cold chains and breeding infrastructure. Most existing investments are at the lower end and heavily grant-dependent.
Trends of Capital Flows: Capital flows remain fragmented and sporadic. Funding peaks during disease outbreaks or government campaigns, but drops sharply post-crisis. Few sustained investments exist to scale service delivery systems or improve breeding access. (26, 27)
Impact of Conflict on Capital Flows: Insecurity and cattle raiding deter long-term private investment. However, government and NGO peacebuilding programs—like cross-border livestock markets and joint grazing agreements—have helped stabilize areas, encouraging service pilots. (4, 23, 27)
Development Partner Support: Donor support (e.g., USAID, IFAD, GIZ) focuses on animal health systems, breeding programs, and disease control infrastructure. Funding is often tied to resilience, food security, and regional integration agendas in ASAL and cross-border regions. (44, 45)
Financial incentives
Agricultural Credit Facility (Uganda): Uganda’s ACF offers subsidized loans for livestock and veterinary services through commercial banks, with interest rates as low as 12% annually and grace periods of up to 1 year. (46)
Agricultural Finance Corporation (Kenya): AFC provides concessional loans for livestock-related agribusiness, including vet service expansion and AI equipment, especially for cooperatives and youth/women-led enterprises. (47)
IFAD-Supported Programs: IFAD-backed livestock programs in Kenya and Uganda include financing for veterinary infrastructure, breed improvement, and CAHW training, often via matching grants or blended finance models. (48)
VAT and Input Exemptions (Kenya): Veterinary drugs and AI inputs benefit from VAT exemptions under Kenya’s agricultural tax regime, making cost recovery more feasible for input suppliers and franchised vet models. (49)
Security Environment
Cattle raiding and retaliatory violence remain persistent, especially in Amudat, Moroto, and northern West Pokot. These disrupt livestock mobility, affect veterinary outreach, and deter private investment in mobile or fixed veterinary infrastructure. (4, 50, 51)
Ambushes and road insecurity during dry seasons, particularly along livestock trade and veterinary supply routes, hinder drug distribution, AI material transport, and service provision by CAHWs and vet clinics. This affects continuity and increases costs. (4, 27, 50)
Land and water access disputes among groups (notably in Rupa, Kiwawa, and Alale) can escalate during dry seasons, disrupting animal movement and undermining efforts to standardize breeding and vaccination calendars across communities. (28)
Cross-border illegal networks smuggling drugs and livestock, particularly around Alale and Amudat, erode trust in veterinary products and formal services. This threatens the viability of franchised vet models and public-private coordination efforts. (27)
Risk mitigation strategies
Build cross-border coordination platforms between Kenyan and Ugandan veterinary authorities to harmonize standards, disease surveillance, and input regulation, reducing cost and uncertainty for private providers.
Engage local leaders and elders in livestock programs to build buy-in and mitigate conflict over resource use or service targeting, especially in areas with contested grazing or trade routes.
Support inclusive governance in cooperatives and CAHW networks by introducing gender quotas, training for women, and targeted incentives to strengthen their role in decision-making and service provision.
Bundle animal health services with peacebuilding dialogues facilitated by local NGOs or IGAD, using service delivery moments to reinforce conflict mitigation, particularly in high-tension areas like Kiwawa and Amudat.
Use blended finance to de-risk early investment, including grants for startup kits, CAHW mobility, and subsidized input supply chains, while phasing in cost-recovery models as markets stabilize.
Actors in IOA Space
References
Sector and Subsector Sources
- (1) Ministry for Karamoja Affairs & Office of the Prime Minister. (2021). The Third Karamoja Integrated Development Plan (KIDP 3) 2021–2025.
- (2) County Government of West Pokot. (2023). Third County Integrated Development Plan (CIDP) 2023–2027.
- (3) Catley, A., et al. (2021). Introducing pathways to resilience in the Karamoja Cluster. Pastoralism, 11(28). https://doi.org/10.1186/s13570-021-00214-4
- (4) UNDP Africa Borderlands Centre. (2022). The Karamoja Cluster: Rapid Conflict Analysis and Gender Assessment (Kenya and Uganda).
- (5) Kenya High Commission Kampala. (2025). Kenya-Uganda Trade & Investments. Accessed February 2025. https://www.kenyamissionkampala.ug/kenya-uganda-trade-investments
- (6) Columbia SIPA. (2020). Ethical Cross-Border Trading between Kenya and Uganda by Women-led Micro and Small Enterprises.
- (7) Aklilu, Y. (2017). Livestock Trade in Karamoja, Uganda: An Update of Market Dynamics and Trends. USAID. https://karamojaresilience.org/wp-content/uploads/2021/05/tufts_1803_krsu_livestock_trade_karamoja_v2_online.pdf
- (8) Arasio, R.L., and E. Stites. 2022. “The Return of Conflict in Karamoja, Uganda: Community Perspectives.” Karamoja Resilience Support Unit (KRSU), Feinstein International Center, Friedman School of Nutrition Science and Policy at Tufts University, Kamp
- (9) Interpeace, IGAD, & FAO. (2023). Conflict, Climate Change, Food Security and Mobility in the Karamoja Cluster. https://www.interpeace.org/wp-content/uploads/2024/01/Conflict-climate-change-food-security-and-mobility-in-the-Karamoja-Cluster.pdf
- (10) Armed Conflict Location & Event Data Project (ACLED). (2025). Regional Overview – Africa, February 2025. https://acleddata.com/2025/02/10/africa-overview-february-2025
- (11) Republic of Uganda. (2009). The National Livestock Census Report 2008. Ministry of Agriculture, Animal Industry & Fisheries.
- (12) Behnke, R.H. and Arasio, R.L., 2019. The Productivity and Economic Value of Livestock in Karamoja Sub-region, Uganda. Karamoja Resilience Support Unit, USAID/Uganda, UK aid, and Irish Aid, Kampala.
- (13) Auma, S., & Badr, N. (2022). Assessment of the Impacts of Climate Change on Livestock Water Sources and Livestock Production: Case Study, Karamoja Region of Uganda. World Water Policy.
- (14) Republic of Kenya. (n.d.). Agricultural Sector Transformation and Growth Strategy (2019-2029). https://asdsp.kilimo.go.ke/wp-content/uploads/2023/10/ASTGS-Full-Version-1.pdf
- (15) Republic of Uganda. (2013). National Agriculture Policy. https://www.agriculture.go.ug/wp-content/uploads/2019/04/National-Agriculture-Policy.pdf
- (16) Coffey International. (2016). Support for Strategic Review and Planning to Strengthen DFID’s Work on Gender Equality and Women and Girls Empowerment in Karamoja Region, Uganda.
- (17) Czuba, K. (2012). Income Generating Activities and Savings Behaviour of Adolescent Girls and Young Women in Karamoja.
- (18) IMARA Program. (2022). Value Chain Mapping and Analysis: Integrated Management of Natural Resources for Resilience in the ASAL.
- (19) Karamoja Resilience Support Unit (2022). Karamoja Donor Mapping Report—2022. Karamoja Resilience Support Unit II, United States Agency for International Development (USAID)/Uganda, Kampala.
- (20) Integrated Food Security Phase Classification (IPC). (2023). Karamoja Region IPC Analysis.
- (21) Asiimwe, R., Opolot, G., Ekou, J., & Sserunkuma, D. (2020). The role of camel production on household resilience to droughts in pastoral and agro-pastoral households in Uganda. Pastoralism, 10(6). https://doi.org/10.1186/s13570-020-0160-x
- (22) Kemboi, M. K., Kiptum, K. V., & Rop, N. (2021). A case study to establish the economic viability of local chicken rearing and processing in West Pokot County, Kenya.
IOA Sources
- (23) Interview with public district officers in Moroto and West Pokot
- (24) Interview with the Moroto livestock market committee
- (25) Interview with the Moroto Livestock Traders and Butchery Association
- (26) Interviews with private financial institutions in West Pokot and Karamoja
- (27) Interview with Moroto district veterinary officer
- (28) Interviews with agrovets in West Pokot and Karamoja
- (29) Interview with an agribusiness consultant for a large international organisation
- (30) Interview with a poultry cooperative in Kapenguria
- (31) Interview with West Pokot Chamber of Commerce
- (32) Estimations based on interview data with district veterinary officers, livestock market associations, agrovets, livestock census data, and regional studies.
- (33) Government of Kenya. Kenya Livestock Policy (Sessional Paper No. 3 of 2020). Nairobi: Ministry of Agriculture, Livestock, Fisheries and Cooperatives.
- (34) Republic of Uganda. (2013). National Agriculture Policy. Kampala: Ministry of Agriculture, Animal Industry and Fisheries.
- (35) Government of Kenya. Kenya Animal Health Bill (Draft, 2021). Nairobi: Ministry of Agriculture, Livestock, Fisheries and Cooperatives.
- (36) Government of Kenya. Veterinary Surgeons and Veterinary Para-Professionals Act (2011). Nairobi: Government Printer.
- (37) Republic of Uganda. Animal Diseases Act (1964, Revised). Kampala: Uganda Legal Information Institute.
- (38) Republic of Uganda. Veterinary Practitioners Act (2023). Kampala: Ministry of Agriculture, Animal Industry and Fisheries.
- (39) East African Community (EAC). Sanitary and Phytosanitary (SPS) Protocol (2020). Arusha: EAC Secretariat.
- (40) Intergovernmental Authority on Development (IGAD). Protocol on Transhumance (2021). Djibouti: IGAD Secretariat.
- (41) East African Community (EAC). Customs Management Act (2017). Arusha: EAC Secretariat.
- (42) IGAD. Regional Animal Health Strategy. Djibouti: Intergovernmental Authority on Development.
- (43) African Union. African Continental Free Trade Area (AfCFTA) Agreement (2021). Addis Ababa: African Union Commission.
- (44) Food and Agriculture Organization of the United Nations (FAO). (2023). FAO, USAID and Kenya Government launch animal health and training programme. Nairobi: FAO Kenya. Retrieved from: https://www.fao.org/kenya/news/detail-events/en/c/1727288/
- (45) Food and Agriculture Organization of the United Nations (FAO). (2022). Animal health and veterinary services receive a boost from ISAVET programme in Uganda. Kampala: FAO Uganda. Retrieved from: https://www.fao.org/uganda/news/detail-events/en/c/1681399/
- (46) Bank of Uganda. Agricultural Credit Facility (ACF). Kampala: Bank of Uganda.
- (47) Agricultural Finance Corporation (AFC). Loan Products and Services. Nairobi: Government of Kenya.
- (48) International Fund for Agricultural Development (IFAD). (2024). Project Design Report: Resilient Livestock Value Chain Project. Rome: IFAD. Retrieved from: https://webapps.ifad.org/members/eb-seminars/2024-09-11-12-EB-consultation/docs/EB-2024-142-R-8-Project-Design-Report.pdf
- (49) Netherlands Enterprise Agency (RVO). (2021). VAT and Agriculture in Kenya: Recent Law Changes. The Hague: Government of the Netherlands. Retrieved from: https://www.agroberichtenbuitenland.nl/landeninformatie/kenia/achtergrond/latest-developments/vat-and-agriculture-in-kenya-recent-law-changes
- (50) Gray, S., Sundal, M., Wiebusch, B., Little, M. A., Leslie, P. W., & Pike, I. L. (2003). Cattle raiding, cultural survival, and adaptability of East African pastoralists. Current Anthropology, 44(S5), S3–S30. https://doi.org/10.1086/377669
- (51) Stites, E. (2022). Conflict in Karamoja: A Synthesis of Historical and Current Perspectives, 1920–2022. Karamoja Resilience Support Unit (KRSU), Feinstein International Center, Tufts University.
- (52) USAID. (2023). Applied Political Economy Analysis for the Karamoja Cluster. Washington, D.C.: USAID.
- (53) Interview with cross-border trade associations.
- (54) University of Minnesota. (n.d.). ProgRESSVet-East Africa. Retrieved from: https://progressvet.umn.edu/progressvet-east-africa
- (55) Global Alliance for Livestock Veterinary Medicines (GALVmed). (2021). Developing a Public-Private Partnership Framework for FMD in Eastern Africa. Retrieved from: https://www.galvmed.org/developing-a-public-private-partnership-framework-for-fmd-in-eastern-africa/