Kenya imposes 10% dairy import levy to shield farmers

KENYA – Kenya has imposed a 10% import levy on dairy products, a move aimed at cushioning local dairy farmers from unfair competition caused by unregulated imports.

Earlier this year, a mini trade war erupted between Kenya and Uganda, after milk imports from the latter were impounded at the border, leading to a temporary ban on the importation.

The obstruction in Kenya of delivery trucks carrying Pearl Dairy products, as the company reported, cost them $0.6 million.

According to dairy industry regulations published by the Ministry of Agriculture, milk processors in the country will no longer set and adjust farm gate prices at will, which they apply when there is either a shortage or a glut.

The East African reports that last week, Brookside Dairy increased milk prices by one shilling per liter to Ksh36 ($0.34) from Ksh35 ($0.33) so as to cushion farmers from the effects of the COVID-19 pandemic.

Data from the Agriculture ministry reveal that the country imported 70 million liters and 10 million kilograms of powdered milk in 2018 and an additional 15 million liters of liquid milk and 1.5 million kilograms of powdered milk in January 2019.

Kenyan dairy industry to grow by 53% by 2028 through Nourishing Prosperity Alliance interventions

The dairy industry in Kenya is projected to grow by 53% by the year 2028, with an average of 10% annual growth year over year as a result of interventions by the Nourishing Prosperity Alliance: Forage for Animal Growth in East Africa (NPA-Forage).

Nourishing Prosperity Alliance (NPA) is an innovative coalition of private agricultural firms, research institutions and non-governmental organisations that aims to increase the productivity and incomes of small-scale dairy farmers in Ethiopia and Kenya.

According to the statistics by the coalition, the potential 53% growth in the dairy sub-sector would translate to about half a million small-scale farmers producing 3.4 billion litres of milk from a total herd of 2 million animals.

The commercial value of this growth, based off on the initial success of the pilot that took place between 2020 and 2023, is about Ksh 156 billion in total revenue for small-scale dairy farmers.

Ian Mutua Muthama, NPA-Forage Country Lead Technical Manager, highlighted that poor animal nutrition is a key factor in low milk productivity.

He explained that by establishing a market for nutritious and cost-effective forage, the dairy industry is expected to grow by 16% this year, 26% next year, and up to 53% by 2028.

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