Livestock production is central to the livelihoods and economies of pastoral and agro-pastoral communities in Kenya’s drylands, yet its commercial potential is constrained by fragmented production and marketing systems, weak institutional coordination, inadequate infrastructure, information asymmetries, insecurity, climatic shocks and unequal bargaining power. This study examined the evolution, institutional arrangements and business models underpinning livestock-market organization in Kenya’s drylands and developed a framework for sustainable market coordination. A qualitative-dominant multiple-case study design was employed, focusing on four models: the Organized Livestock Marketing Model, Livestock Marketing Associations (LMAs) and Co-management Model, Meat and Livestock Assembly Model, and Livestock Market-Yard Management Model. Turkana County constituted the principal empirical case, supplemented by evidence from Marsabit, Isiolo, Samburu, Baringo and Tana River. Data were collected through 45 semi-structured key-informant interviews, 10 focus group discussions, documentary review and direct market observation, and analyzed using thematic, historical, within-case and cross-case approaches. Findings show that the four models represent complementary dimensions of livestock-market development. The Organized Livestock Marketing Model provides market architecture by coordinating actors, information, livestock flows and market linkages. The LMA and Co-management Model strengthens collective action, representation and shared governance, although uneven implementation limits its effectiveness. The Meat and Livestock Assembly Model enhances aggregation, specialization, downstream linkages and value addition, while the Market-Yard Management Model institutionalizes infrastructure management, regulation, service delivery and commercial operations. The study concludes that sustainable livestock commercialization requires integration of these functions rather than isolated interventions. It proposes a Sustainable Livestock-Market Coordination Framework linking production, aggregation, market linkages, value addition and governance to improve connectivity, efficiency, competitiveness, commercial viability, resilience and institutional sustainability in Kenya’s drylands.