Technical Efficiency and Profitability of Cage Aquaculture Systems among Fish Farmers around Lake Victoria, Kenya

African Journal of Agriculture | Vol. 13, No. 8, August 2026 | pp. 154–161

DOI: 10.46882/2026/AJA/000753

Article Type: Original Research Article

Title: Technical Efficiency and Profitability of Cage Aquaculture Systems among Fish Farmers around Lake Victoria, Kenya

Names of Authors: Kevin O. Onyango¹, Beatrice A. Omondi¹, Collins P. Odhiambo²

Authors’ Affiliations: ¹Kenya Marine and Fisheries Research Institute (KMFRI), Kisumu Station, Kisumu, Kenya; ²Department of Agricultural Economics, Maseno University, Maseno, Kenya

Abstract: Overfishing and wild stock depletion in Lake Victoria have driven a rapid expansion of commercial cage aquaculture. However, high operational input costs, especially for commercial feeds, threaten the financial sustainability of these small- and medium-scale ventures. This study applied a stochastic frontier production function model to analyze the technical efficiency and net profitability of 150 tilapia (Oreochromis niloticus) cage aquaculture enterprises operating in Kenyan waters. Primary data were gathered through production logs and face-to-face interviews covering structural dimensions, feed budgets, stocking density, and harvest values. Cost-benefit metrics indicated that cage aquaculture remains profitable, yielding an average net return of US$ 1,240 per production cycle per cage. The stochastic frontier analysis revealed a mean technical efficiency of 74.2%, showing that operators could boost outputs by 25.8% using their current resource base. Fingerling quality and feed volume were positive, statistically significant factors driving output (p < 0.05). Inefficiency modeling showed that lack of technical training, informal cooperative setups, and poor water quality management increased technical errors. The study recommends public investment in local hatcheries to lower fingerling costs and standardizing extension training to improve feed conversion efficiencies.

Keywords: Cage aquaculture, Oreochromis niloticus, Stochastic frontier, Technical efficiency, Feed conversion, Aquaculture economics

Manuscript Timeline: Received: June 15, 2026; Revised: July 18, 2026; Accepted: August 09, 2026; Published: August 31, 2026

Citation: Onyango, K. O., Omondi, B. A., & Odhiambo, C. P. (2026). Technical Efficiency and Profitability of Cage Aquaculture Systems among Fish Farmers around Lake Victoria, Kenya. African Journal of Agriculture, 13(8), 154–161. DOI: 10.46882/2026/AJA/000753

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