1. The Dynamics of Livestock Trade in Northern Kenya: Trust and Social Relations in Market Networks. Hussein A. Mahmoud University of Kentucky

2. Project Description 4 Examines social relations of livestock trade in northern Kenya 4 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.

3. The Study Area 4 Northern Kenya (Moyale), 4 Southern Ethiopia (including the administrative units of Moyale, Mega, Yabello, Nagelle, Arero, and Hagere- Mariam, 4 Nairobi (Njiru market)

4. Preliminary findings 4 Trust relationships (northern Kenya and southern Ethiopia): –Socioeconomic status (wealth) big Ethiopian traders give credit to Kenyan traders –Age –Ethnicity

5. Age of cattle traders, Moyale, Nairobi, 2001

6. Preliminary findings (cont’d) 4 Keep a written account of trading activities –Yes44% –No56% 4 Own a bank account –Yes19% –No81%

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

8. Ethnic trading relationships (N. Kenya/S. Ethiopia) 4 Boran and Burji in southern Ethiopia –good relationship 4 Boran and Burji in northern Kenya –strained relationship 4 Ethiopian Boran and Kenyan Burji –excellent business relationship 4 *NOTE: trading relationships affected by larger conflicts in study region

9. Trading Networks:

10. Trading Networks (cont’d)

11. Scale of categories of cattle traders in Southern Ethiopia

12. The Cycle of Cattle Trade 4 The Thursday - Wednesday Cycle –Dubluq Market - Friday –Mega Market - Saturday –Moyale Market - Daily (Wednesday, major)

13. Main Actors in cattle trade 4 Herders (Ethiopians and Kenyans) 4 Small traders (Ethiopians and Kenyans) 4 Medium traders (Ethiopians and Kenyans) 4 Big traders (Ethiopians and Kenyans) 4 Transporters to Nairobi (Kenyans) 4 Brokers in Moyale (Ethiopians and Kenyans)

14. Main Actors in cattle trade (cont’d) 4 Brokers in Nairobi (from northern Kenya) 4 Wholesalers in Nairobi (multi-ethnic) 4 Transporters in Nairobi (multi-ethnic) 4 Butchers in Nairobi (multi-ethnic)

15. Cattle quality and credit 4 No relationship 4 Further investigation required 4 Credit is determined by volume of animals

16. Constraints in cattle trade (N. Kenya/S. Ethiopia) 4 Security –Political differences –Banditry on Moyale - Isiolo highway 4 Trucking costs –unstable and highly unpredictable –determined by number of livestock in Ethiopian markets

17. Trucking costs:

18. Constraints in cattle trade (N. Kenya/S. Ethiopia) (cont’d) –Buying arrangements in Nairobi

19. Positives 4 An increasing trade –Cattle movement, Moyale-Nairobi, 1996-2000

20. Positives (cont’d) 4 Trader Associations (at least three in Moyale, one in Marsabit, and one in Nairobi) 4 National organization for livestock traders 4 Improved dialogue on border trade relations between Ethiopia and Kenya

21. Positives (cont’d) 4 Experienced cattle traders: –Ave. # of years involved in livestock trade = 8 years –Minimum 1 year, Maximum 26 years

22. Further research needed 4 Cattle quality and credit facility 4 Insecurity and cattle trade 4 Women cattle traders 4 Butchers and wholesalers in Nairobi 4 Cattle credit in Nairobi, why? –Problems involved 4 Buying relationships with herders and herder benefits

23. Further research needed (cont’d) 4 The role of trader associations 4 Trust enforcing institutions –local –legal