The funding concerns come at a time when Kenya’s dairy industry is seeking to expand production, formalise milk markets and increase value addition.

KENYA – The Kenya Dairy Board (KDB) has warned that a 23% budget cut for the 2026/27 financial year, amounting to US$1.35 million (KES175.15 million), will constrain its ability to enforce regulation, conduct inspections, and maintain food safety surveillance across Kenya’s dairy sector.
The warning was issued on Thursday, August 20, 2026, when the Agriculture and Livestock Committee, led by its Vice Chairperson Brighton Yegon, visited the Kenya Dairy Board for an oversight engagement.
Recurrent expenditure was reduced by US$1.23 million (KES160.15 million), while capital expenditure was cut by US$115,800 (KES15 million).
“The reduction in funding could constrain day-to-day operations, delay planned investments and weaken food safety surveillance, market monitoring, enforcement and nationwide regulatory coverage,” the Board cautioned.
Highlighting its milestones during FY2025/2026, KDB said it had also stepped up capacity building and market development, training 5,246 stakeholders, surpassing its annual target by 17%.
Dairy exports supported through the Board’s market development interventions were valued at more than Ksh11 billion. Despite the gains, KDB cautioned that industry expansion is increasing pressure on its regulatory and surveillance functions.
The Board conducted 16,333 regulatory inspections, achieving 119% of its target. It also conducted 61,948 quality and safety tests, achieving 83% of its target.
KDB said sustained investment in regulation would be necessary to ensure the sector’s growth does not compromise food safety or consumer protection.
Among the challenges identified by the Board are low productivity, climate variability, informal milk marketing, high production and processing costs, limited diversification and value addition, and gaps in policy and legislation.
The Board also called for continued efforts to address these challenges as Kenya seeks to build a more competitive and sustainable dairy industry.
Kenya’s milk output hits 5.4 billion litres in 2025
Recently, the Principal Secretary for Livestock Production, Jonathan Mueke, revealed that Kenya surpassed Egypt to become the largest producer of milk in Africa.
Speaking in an interview with NTV, Mueke revealed that Kenya’s milk output has risen from 4.6 billion litres to 5.4 billion litres, placing the country ahead of Egypt in continental rankings.
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