Abstract
This study examines the influence of market structure and competition on fish feed pricing in Kenya. Although the aquaculture sector has expanded due to rising demand for fish products and supportive government initiatives, its growth remains constrained by high feed costs, which account for nearly 70 percent of fish production expenses. Guided by the Structure–Conduct–Performance (SCP) paradigm and the theory of imperfect competition, the study investigates whether market concentration contributes to elevated fish feed prices. A mixed-methods research design was employed, combining quantitative and qualitative approaches. Primary data were collected from 91 fish farmers across key aquaculture counties in Kenya, complemented by interviews with stakeholders from government and research institutions. Market concentration was measured using the Herfindahl–Hirschman Index (HHI), while quantitative analysis included descriptive statistics, paired sample t-tests, and price–cost comparisons. The study also compares fish feed prices and input costs in Kenya with those in regional markets such as Uganda and Tanzania between 2020 and 2025. The findings reveal a moderately to highly concentrated market structure, with the three largest firms controlling approximately 77 percent of the market and an HHI of 2,178. Retail fish feed prices increased faster than estimated production costs, and the entry of a new firm in 2023 did not significantly reduce prices, suggesting limited competitive pressure. The results indicate oligopolistic market characteristics and potential tacit coordination. The study recommends strengthening competition enforcement, improving transparency in input markets, and facilitating entry of new producers and regional trade in feed inputs to enhance competition and reduce feed costs.