Ruto Announces New Milk Prices for Farmers Starting October, Reveals Quarterly Bonus

President William Ruto has announced a new payment rate for dairy farmers, saying they will receive KSh 65 per litre of milk starting October 2026. The announcement comes at a time when Kenya is experiencing milk shortages, with consumers facing rising prices and reduced supplies in some areas.

Ruto made the announcement on Tuesday, October 20, during the 63rd Mashujaa Day celebrations at Kipchoge Keino Stadium in Eldoret. He said the government was implementing agricultural reforms aimed at improving farmers’ earnings and strengthening the dairy sector.

According to the President, farmers will also receive an additional bonus of KSh 2 per litre every quarter. The new arrangement is expected to increase their earnings from milk production and provide additional support to those supplying milk to processors.

Ruto noted that the amount paid to milk producers had previously increased from KSh 35 to KSh 60 per litre before the latest adjustment to KSh 65. He also reported that Kenya’s milk production had grown by approximately one billion litres.

Data from the Kenya National Bureau of Statistics shows that fresh milk production reached a record 5.5 billion litres in 2025, representing a 3.5 per cent increase from the previous year. Milk intake by industrial processors also surpassed one billion litres for the first time, rising from 909 million litres in 2024.

However, the country continues to face challenges in maintaining a steady milk supply. Farmers have attributed the situation partly to high animal feed costs and declining production in some areas, with some choosing to sell directly to consumers in search of better returns.

The government has also outlined plans to decentralise the operations of New Kenya Cooperative Creameries (New KCC) by allowing its eight factories to operate independently and supply milk directly to their respective regional markets. The plan is intended to reduce transportation costs and improve distribution.

Additionally, Ruto pledged that the government would settle approximately KSh 400 million owed to dairy farmers by the end of October.

The new payment rate could improve farmers’ earnings, although its impact on retail milk prices will depend on production levels, processing costs, distribution and the availability of milk in the market. Consumers will be watching to see whether the measures help ease the current shortage and make milk more affordable.

Source: https://www.facebook.com/100064288795404/posts/1553311356821809/?app=fbl

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