This initiative arrives at a critical time for Kenya’s dairy sector, which contributes approximately 3–4% of the national GDP and supports over 1.8 million smallholder farmers.
This move is expected to enhance transparency, efficiency, and accessibility to subsidized breeding services to farmers across all sub-counties.
The announcement was made at the Ministry Performance Contracting Retreat held at the Kenya School of Government in Mombasa.
The initiative seeks to move away from a volume-driven model, where farmers are paid based on the quantity of milk delivered, to a value-based system that rewards quality.
Farmers are calling for reforms to upgrade New KCC factories, aiming to boost milk production and improve earnings.