Kenyan Government to revitalise dairy sector to boost farmers’ incomes

KENYA – The Cabinet Secretary for Cooperatives and MSMEs Development, Wycliffe Oparanya, has pledged that the government will revitalise the coffee sector and roll out the same approach in the dairy value chain.

Mr. Oparanya delivered the statement at the end of the retreat, where ministry officials reviewed performance targets and delivery plans. He emphasised that the core aim remains clear: serve Kenyans better, faster, and with dignity.

“We are revitalising the coffee sector and rolling out the same model in the dairy value chain to increase farmers’ incomes and restore Kenya’s global standing,” Oparanya wrote.

He noted that the government is strengthening SASRA and finalising the review of the SACCO Societies Act, 2008 to protect members’ savings, improve governance and restore confidence in the cooperative sector.

For MSMEs, this includes mapping enterprises, rolling out MSME Connect to link entrepreneurs to finance, markets, digital tools, and climate-smart solutions, and reforming laws to help small businesses grow into sustainable businesses.

“Through stronger partnerships with County Governments and key institutions, we are taking opportunities closer to the people and creating jobs across the country,” he added.

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

Recently, the government of Kenya 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.

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