Ultrasound examination of the liver and right lung was performed in 260 sheep and 320 goats from the Turkana district of Kenya. Hydatid cysts were visualized in 9.2% of the sheep and 2.5% of the goats. Of the animals positive on ultrasound, 87.5% received post-mortem examinations. Eighteen (6.9%) sheep and 5 (1.5%) goats were positive for hydatid cysts on ultrasound and post-mortem examination. False-positives were a result of Taenia hydatigena cysticerci present in the liver in all but 1 case. Positive predictive value of ultrasound for diagnosis of hydatidosis in sheep and goats was 82.1%.