Livestock trade is central to the economies and livelihoods of pastoral communities in Africa's drylands, yet its potential is constrained by climate variability, weak market infrastructure, limited market information, inadequate capital, insecurity, animal diseases, informal marketing arrangements, and unequal competitive conditions among traders. This study examined the challenges affecting livestock trade in Turkana County, Kenya, with particular attention to livestock production and market access, trader competitive rivalry, and the implications of market organization for pastoral livelihoods. A case-study approach was applied to three livestock markets in Lodwar, Lokichoggio, and Kainuk towns. Primary data were obtained from 168 livestock-market respondents, with 56 respondents selected from each market. The analysis employed descriptive statistics, chi-square tests, Kruskal–Wallis tests, post-hoc comparisons, one-way analysis of variance, reliability analysis, and simple linear regression. Results indicate substantial constraints in livestock production and market access. The overall market-access scale had a mean score of 2.51 (SD = 0.61), with significant differences among Lodwar (M = 2.89), Kainuk (M = 2.54), and Lokichoggio (M = 2.09) markets. Competitive rivalry was also significant, with an overall mean of 3.12 (SD = 0.63); Lodwar recorded the highest mean (M = 3.62), compared with Lokichoggio (M = 2.79) and Kainuk (M = 2.94). Regression analysis showed that trader competitive rivalry significantly predicted livestock production and market access, β = 0.381, t = 5.536, p < .001, explaining 15.1% of the adjusted variation. The findings demonstrate that competition in dryland livestock markets is not inherently beneficial when it operates through unequal access to capital, information, market networks, and institutional influence. Sustainable livestock trade therefore requires a systems-oriented approach combining market infrastructure, animal health, climate resilience, transparent pricing, market information, trader finance, producer organization, inclusive governance, and strengthened cross-border trade arrangements. The study concludes that transforming dryland livestock trade from predominantly informal and subsistence-oriented transactions into transparent, market-oriented and resilient value chains is essential for improving pastoral incomes, food security and regional economic development.