President William Ruto announces increment in farmgate milk prices

KENYA – President William Ruto has announced that dairy farmers will earn KES65 per litre of milk from October, plus a quarterly bonus of KES2 per litre.

Speaking during the 63rd Mashujaa Day celebrations at Kipchoge Keino Stadium in Eldoret on Tuesday, October 20, the President said recent agricultural reforms are intended to improve earnings for farmers across the country. 

He noted that the price paid to milk producers had risen from Ksh35 to Ksh60 per litre, with the latest adjustment expected to raise their returns further. 

According to the Kenya National Bureau of Statistics (KNBS) Economic Survey 2026, released on April 30, fresh milk production hit a record 5.5 million tonnes (5.5 billion litres) in 2025, representing a 3.5 per cent increase from the previous year and marking the third consecutive year of growth.

The KNBS data also noted that milk intake by industrial processors crossed the 1 billion litre mark for the first time, an 11.5 per cent jump from 909 million litres in 2024. 

Kenya unveils US$11M dairy investment to cut production costs

The Kenyan government has invested US$11.02 million (KES1.428 billion) in dairy infrastructure to reduce production costs, cut milk losses, and improve farmers’ incomes, according to Agriculture Cabinet Secretary Mutahi Kagwe.

Appearing before Parliament to respond to questions on the agriculture sector, Kagwe said the investment will finance 230 bulk milk coolers, including 200 solar-powered units, to strengthen milk aggregation and reduce post-production losses.

The solar-powered coolers are expected to save dairy cooperatives about Sh73 million annually in electricity costs while supporting more than 115,000 farmers across 41 counties.

The facilities are expected to help farmers aggregate an estimated 475,000 litres of milk daily.

Additionally, the government is also subsidizing improved dairy genetics as part of efforts to raise productivity.

The price of sexed semen has been reduced by nearly 65 per cent, from Sh2,900 to Sh1,000 per dose under the subsidy programme.

The CS said the measure is intended to make improved genetics more accessible to farmers and support higher productivity in the dairy sector.

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