Cooperatives: Engines of Kenya’s dairy transformation – AFDIS 2026

KENYA – Cooperatives have been recognised as vital engines of growth in the dairy sector, at the Africa Dairy Innovations Summit (AFDIS) 2026. Summit.

A panel discussion titled “Powering the Future of Milk Production & Processing through Co-operatives”painted a vivid picture of a sector at a crossroads.

The discussion underscored that for Africa to meet its nutritional and economic goals, the cooperative model is not just an option—it is a necessity.

According to Alex Gathii, the primary strength of a cooperative lies in the ability to pool resources. By aggregating small-scale outputs, farmers gain the leverage needed to access high-level training and better market rates.

Daniel Mutahi of Mumberes Cooperative stated that prioritizing financial stability and investing in personnel training, Mumberes has directly boosted farmer profitability.

Currently, the cooperative handles 13,500 liters of milk daily, with 20% dedicated to value-added products, proving that local entities can move beyond raw milk sales to capture more of the value chain.

Additionally, the Kenyan government is playing a pivotal role in this transformation. Moses Kimani from the State Department of Livestock highlighted a massive push to increase cold chain infrastructure to a capacity of 475,000 liters.

Beyond cold chain infrastructure, the state is focusing on: establishing a dedicated food & fodder resource fund, implementing a quality-based milk payment system to incentivise excellence and supporting value addition to make Kenyan dairy competitive for export.

Investment priorities were also highlighted: the government emphasized cold chain systems and fodder production, while Mumberes pointed to value addition, training in fodder growth, and concentrate formulation to reduce aflatoxins.

Alex Gathii added that inclusivity and fair pricing could be achieved by emulating successful projects such as the cash cow initiative and embracing digitalization.

Despite these gains, cooperatives face structural challenges that limit their potential. Leadership capacity, political dynamics, inadequate capital to employ skilled personnel, weak infrastructure, climate change, and milk quality standards remain persistent hurdles.

Panelists stressed that transparency in governance and adoption of technology are critical to overcoming these barriers.

With over 8,500 registered dairy cooperatives currently collecting 40% of Kenya’s milk, the Kenya Dairy Board representative stated that the primary goal is to increase production from the current 5.3 billion liters to a projected 12 billion liters by 2030.

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