Informal Crossborder Livestock Trade Restrictions in Eastern Africa: Is there a case for free flows in Ethiopia-Kenyan Borderlands?

Abstract

The case of informal cross border livestock trade in Ethiopia-Kenya border areas is examined with the intention to clear some doubts on conventional perceptions and broadly explore the implied effects of restrictive official interventions on the welfare of the peripheral population. The informal channel accounts for an estimated 71% of total value of live animal exports and 78% of consumer goods and productive inputs imported into the area. It is found that cross border livestock trade restrictions could lead to substantial drops in pastoral household welfare. In the case of Ethio-Kenyan borderlands, the informal traded livestock flows rather appear to be mutually beneficial, and should be guided by bilateral cross border co-operation of free flows.