Effect of clustering on cage tilapia value chain performance in Lake Victoria, Kenya

Kenya’s cage tilapia value chain is facing significant challenges that threaten its sustainability and the well-being of those who depend on it. The most pressing issues include high cost of feeds and inadequate infrastructure. This study evaluates the effect of clustering on the cage tilapia value chain performance in Lake Victoria, Kenya, hypothesizing that a higher Clustering Index (CI) enhances gross margins performance of the sector. Using cross-sectional data from 369 respondents across five riparian counties, Principal Component Analysis (PCA) and Generalized Linear Models (GLM) were applied. Results show a significant positive effect of clustering (CI: 0.2–0.8) on gross margins (β = 0.286, p < 0.001), with Homa Bay and Kisumu outperforming Busia by 20%. Clustering is associated with reduced feed delivery time by 20% through bulk purchasing, offering a pathway to offset costs. These findings provide actionable insights for policymakers to enhance aquaculture sustainability and competitiveness, aligning with Sustainable Development Goal (SDG) 2 and 8.