Why Laikipia farmer Is betting on premium beef

Equity Bank Kenya Managing Director Moses Nyabanda inspects animal feed in the troughs during a field visit to Ongole Beef Farm in Laikipia County. On his right is Dr Samuel Muchuku, Ag. HR Director at Equity Bank Kenya; on his left are David Murage (in a dust coat), Feedlot Manager at Ongole Beef Farm, and Carol Rutto, Director and Head of Retail Banking at Equity Bank./HANDOUT

On the expansive plains of Rumuruti in Laikipia County, a quiet shift is taking shape in how cattle farming delivers value.

Instead of chasing larger herd sizes, one farm is focusing on extracting more worth from each animal by targeting high-end markets.

At the centre of this shift is Ongole Beef Farm, where chairman Philip Kimeru is steering a model built on integration, efficiency and value addition.

His approach links every stage of production from breeding and feeding to processing and retail—into a single, coordinated system.

The farm manages a herd of more than 2,000 cattle, but scale alone is not its defining strength. Rather, its focus is on controlling quality, reducing operational costs and positioning its beef for premium buyers.

“Feed costs remain our biggest expense, which is why we are investing in producing our own,” Kimeru said.

To manage this, the farm produces key inputs such as maize, cotton and hay.

It relies on organic practices, recycling manure back into crop farming to sustain soil fertility and reduce dependence on external supplies. This not only stabilises costs but also ensures consistent feed quality.

Market dynamics have played a key role in shaping this strategy. Kimeru points to the wide price gap between local and premium beef markets as a turning point.

While ordinary outlets offer about Sh 800 per kilo of steak, niche markets can fetch up to Sh6,000, making a strong case for value addition.

“We have learnt that premium markets reward quality. This is why our focus now is on value addition, guided by our ‘whole cow, whole harvest’ philosophy,” he said.

The philosophy centres on maximising returns from every part of the animal.

Beyond prime cuts, the farm processes bones, hides and other by-products, ensuring that little goes to waste while increasing revenue per steer.

Technology is also embedded across the operation. Each animal is fitted with an electronic tag, allowing for full lifecycle tracking. This level of traceability is increasingly critical for meeting the standards required by export and premium markets. The model extends beyond the farm itself.

Ongole sources livestock from nearby pastoralist communities, integrating them into its system after quarantine and quality checks.

This creates a link between small-scale producers and higher-value markets, broadening the impact of the model.

Processing is handled through a near fully automated, halal-compliant facility, supported by cold storage infrastructure and a retail outlet in Karen, Nairobi, where the premium product is sold.

The farm’s approach has begun to draw attention from financial institutions. Equity Bank Kenya recently toured the facility as part of its broader focus on agribusiness financing.

Managing Director Moses Nyabanda said the farm reflects the kind of opportunity the bank sees in agriculture.

“We are committed to supporting customers in the agricultural sector. Through our Africa Recovery and Resilience Plan, we see agriculture as a unique opportunity for Kenya and the continent, and Ongole Beef is a strong testament to that,” Nyabanda said.

He added that the farm’s integrated model aligns with the bank’s ambition to strengthen agricultural value chains and grow the sector’s contribution within its portfolio. Nyabanda also pointed to the farm’s use of technology as a key differentiator in improving productivity and meeting market standards.

“It is impressive to see how technology is being applied in breeding and finishing to deliver quality beef. This aligns with our ambition to grow agriculture to 30 per cent of our balance sheet,” he said.

For Kimeru, the long-term goal is to build resilience creating a system that can withstand shifting market conditions while consistently tapping into high-value demand.

“We are focused on achieving optimum revenue multiplication per steer,” he said.