Kenya launches Quality-Based Milk payment system to transform dairy earnings

KENYA – The government of Kenya has launched the Quality-Based Milk Payment System (QBP) as part of ongoing reforms to shift Kenya’s dairy sector from volume-driven production to value-based earnings.

Speaking during an engagement with dairy stakeholders, Livestock PS Jonathan Mueke said the new system will ensure farmers who produce high-quality milk earn more.

“Our message to Kenyan dairy farmers is clear: we are shifting from volume to value. Farmers who invest in quality production will now receive better prices,” said PS Mueke.

He noted that major dairy processors and many cooperatives have signed onto the system, meaning milk payments will no longer be based solely on kilograms delivered.

Under QBP, milk will be tested at collection centres for butterfat, protein content and safety parameters, with higher-quality milk attracting premium prices and bonuses.

To support farmers, the government is implementing the AI Subsidy Program, subsidised livestock vaccination, provision of bulk milk coolers and improved feed monitoring.

The PS noted that the reforms will raise farmer incomes, improve milk safety and enhance Kenya’s competitiveness in regional and international dairy markets.

“Quality milk is quality life for the farmer. These reforms will transform the livestock sector and put more money in the farmers’ pockets,” he added.

Kenya unveils dairy sector growth targets scorecard from 2022–2025

Recently, the Ministry of Agriculture and Livestock Development released its 2022–2025 Agriculture and Livestock Development Scorecard, outlining targets to transform Kenya’s dairy industry into a more competitive, resilient, and inclusive sector.

According to the scorecard, national milk production is projected to grow by 15.2%, rising from 4.6 billion litres to 5.3 billion litres.

Processing volumes are expected to increase by 20.5%, reaching 910 million litres, while dairy exports are set to nearly double from US$37.8 million (KES 4.9 billion) to US$72.5 million (KES 9.4 billion).

The report also highlights a 229% surge in dairy-related businesses, from 1,492 to 4,899, and a 22% increase in market value, from US$281 million (KES 36.5 billion) to US$344.8 million (KES 44.7 billion).

Farmer earnings are projected to improve, with average income per litre rising from Ksh. 47.2 to Ksh. 50.

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