Ruto Announces KSh 65 Per Litre Milk Price and Quarterly Bonus for Dairy Farmers

President William Ruto has announced an increase in the price paid to dairy farmers to KSh 65 per litre, alongside a quarterly bonus of KSh 2 per litre, in a move intended to improve earnings for milk producers across Kenya.

Speaking during the 63rd Mashujaa Day celebrations at Kipchoge Keino Stadium in Eldoret on Tuesday, October 20, 2026, Ruto said the new payment arrangement would take effect in October.

The President noted that the price of milk paid to farmers had previously increased from KSh 35 to KSh 60 per litre, describing the latest adjustment as part of broader efforts to strengthen the agricultural sector and improve farmers’ livelihoods.

He added that the quarterly bonus would provide additional financial benefits to eligible dairy farmers supplying milk to processors.

The announcement comes as farmers continue to face rising production costs, particularly animal feed expenses, while seeking more reliable payments for their produce.

Ruto also reported that Kenya’s milk production had increased by one billion litres, highlighting growth in the country’s dairy industry.

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 compared with the previous year.

Industrial milk processors also recorded intake exceeding one billion litres for the first time, reflecting increased deliveries through formal processing channels.

Despite the growth, challenges remain, including milk supply shortages in some areas, rising retail prices and concerns over delayed payments to farmers.

The government is also pursuing changes at New Kenya Co-operative Creameries, including plans to give individual factories greater operational independence to improve efficiency and distribution.

Ruto’s administration has further pledged to clear approximately KSh 400 million owed to dairy farmers by the end of October.

The effectiveness of the new pricing arrangement will depend on consistent implementation, timely payments and improvements in milk collection and distribution.

For farmers, the announcement offers hope of better returns, while consumers will be watching to see whether the measures help stabilise milk supplies and prices.

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