Dairy farmers demand US$2.32M pending payments for raw milk deliveries

KENYA – Dairy farmers in Kenya’s North Rift and South Rift regions have raised alarm over delayed payments for raw milk supplied to the New Kenya Cooperative Creameries (New KCC).

The farmers say they are owed more than US$2.32 million (KES 300 million) in pending payments, covering deliveries made over the past four months.

The prolonged delays have left many producers struggling to meet financial obligations, including farm input costs, school fees, and household expenses.

Frustrated by the situation, farmer representatives have warned that unless payments are expedited, they may be forced to diversify into other forms of agriculture, such as crop farming or poultry, to cushion themselves against financial strain.

The dairy sector is a critical lifeline in the Rift Valley, often referred to as Kenya’s “milk basket.” Timely payments are essential to sustain production, maintain farmer confidence, and ensure the stability of the country’s dairy value chain.

The current standoff highlights broader challenges in cooperative management and the need for stronger financial systems to protect farmers’ livelihoods.

New KCC to purchase 65,000 litres of milk daily

Recently, the company agreed to purchase 65,000 litres of milk daily from the Kirima Dairy Co-operative Society in Kirinyaga County.

The decision was made following discussions between cooperative representatives and New KCC officials. An agreement was reached to increase the daily collection to 65,000 litres, ensuring that most of the farmers’ milk will now be collected and processed.

Previously, New KCC had been purchasing 45,000 litres daily, but a reduction to 25,000 litres exacerbated the crisis, leaving farmers with unsold milk and financial strain.

This news brings a sigh of relief to the society that serves over 6,000 dairy farmers, averting losses that farmers have incurred over the past few weeks.

For days, more than 6,000 farmers affiliated with the cooperative faced challenges as milk collection slowed down, forcing some to pour away their produce due to a lack of storage and buyers.

The CEC assured the farmers that, based on the agreed-upon terms, all challenges will be addressed as the county government continues with the other logistical operations and paperwork necessary to prevent future milk wastage.

Subscribe to receive our email newsletters with the latest news and insights from Africa, the Middle East and around the world. SUBSCRIBE HERE