Good News for Farmers as New Changes Will See Them Paid More per Litre of Milk

President William Ruto has announced that dairy farmers will be paid KSh 65 per litre of milk starting this month, with an extra KSh 2 per litre bonus paid every quarter.

He made the announcement on Tuesday, October 20, during the 63rd Mashujaa Day celebrations at Kipchoge Keino Stadium.

Ruto said recent agricultural reforms are meant to raise farmers’ earnings. The price paid to producers, he noted, has already risen from KSh 35 to KSh 60 per litre, and the new rate lifts it further. He also said national milk production has grown by one billion litres.

The Kenya National Bureau of Statistics (KNBS) Economic Survey 2026, released on April 30, shows fresh milk production hit a record 5.5 million tonnes, about 5.5 billion litres, in 2025.

That is a 3.5% increase on the previous year and the third straight year of growth. Milk intake by industrial processors also passed one billion litres for the first time, up 11.5% from 909 million litres in 2024.

The announcement comes amid a persistent milk shortage that has pushed retail prices up and cut supplies to households, hotels and dairy outlets.

Farmers blame high feed costs and falling production, and some are selling directly to consumers because processors pay less.

Days earlier, Ruto outlined plans to decentralise the eight New Kenya Cooperative Creameries (New KCC) factories.

Each would operate independently and supply markets in its own region. He said this would reduce reliance on the Nairobi factory, cut transport costs, and help ease the shortage and lower prices for consumers.

Ruto also promised to settle about KSh 400 million owed to dairy farmers by the end of October.

Source; https://www.facebook.com/share/p/1E2sR3kcEd/