Productivity of rangelands in Kenya is affected by increasing crop farming especially in more
fertile range areas. Among the key factors driving the encroachment of crops on rangelands
are the changing opportunities brought about by markets. We hypothesize that the existing
market inefficiencies characterizing livestock markets, especially the price disincentives that
livestock producers face, are major risks rangelands face. To analyze the effect of livestock
market conditions on rangeland management, we draw on household survey and economic
modeling tools. We find that traders’ rent seeking behavior and high transport costs act as
disincentives to livestock producers’ participation in livestock markets and influence their
decisions in seeking alternative rangeland uses to sustain livelihoods. However, improved
livestock market access enhances livestock producers’ livelihoods and the stewardship of the
ecosystems thus reducing pastoralists’ vulnerability to ecological climate variability
associated with rangelands.