Ruto Announces KSh 65 Milk Price and Extra Bonus for Farmers Starting October

President William Ruto has announced a new milk payment rate of KSh 65 per litre for dairy farmers starting October 2026, alongside a quarterly bonus of KSh 2 per litre, in a move aimed at improving farmers’ earnings amid milk supply challenges across Kenya.

Speaking during the 63rd Mashujaa Day celebrations at Kipchoge Keino Stadium in Eldoret on Tuesday, October 20, Ruto said the new payment arrangement would build on previous government interventions intended to increase agricultural productivity and improve the livelihoods of dairy farmers.

The Head of State noted that the price paid to milk producers had risen from KSh 35 to KSh 60 per litre, with the latest adjustment expected to provide additional income to farmers supplying milk to processors.

“Beginning this month, dairy farmers will earn KSh 65 per litre, with a bonus of two shillings to be paid every quarter,” Ruto announced.

The new rate is expected to offer relief to farmers who have repeatedly raised concerns about production costs, delayed payments and the need for better returns from their dairy businesses.

During his address, the President said Kenya’s national milk production had increased by one billion litres, attributing the growth to changes and investments in the agricultural sector.

According to the 2026 Economic Survey by the Kenya National Bureau of Statistics, fresh milk production reached approximately 5.5 million tonnes in 2025, representing a 3.5 per cent increase from the previous year.

Milk intake by industrial processors also exceeded one billion litres for the first time, reflecting increased deliveries through the formal processing sector.

However, the country has continued to experience milk supply challenges, with some consumers and retailers reporting limited availability and higher retail prices.

Farmers have also expressed concerns about the cost of animal feeds and the payments they receive from cooperatives and processing companies.

Ruto’s announcement comes amid plans to decentralise the operations of New Kenya Co-operative Creameries, allowing individual factories to manage their affairs and distribute milk to markets within their respective regions.

The government expects the proposed changes to reduce transportation expenses, improve operational efficiency and ensure farmers benefit more directly from milk sales.

The administration has also promised to clear approximately KSh 400 million owed to dairy farmers by the end of October 2026.

The outstanding payments have been a major concern for producers, with some reportedly waiting for two or three months to receive their earnings.

The new payment rate could improve farmers’ incomes, although its impact on retail milk prices will depend on production levels, processing costs and distribution efficiency.

The government will also need to ensure that farmers receive their payments on time and that increased production translates into a reliable supply for consumers.

For dairy farmers, the key test will be whether the announced rates and proposed reforms are implemented consistently across the sector.

As the government pursues its agricultural transformation agenda, the new milk price marks another commitment to improving returns for producers while addressing the challenges affecting Kenya’s dairy industry.

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