Ruto Makes a New Announcement That Could Change Dairy Farmers’ Fortunes

President William Ruto has announced a new payment rate for dairy farmers, saying they will earn Ksh65 per litre of milk from October, alongside an additional quarterly bonus of Ksh2 per litre.

Speaking during the 63rd Mashujaa Day celebrations at Kipchoge Keino Stadium in Eldoret on Tuesday, October 20, 2026, the President said the adjustment was part of government efforts to improve farmers’ earnings through agricultural reforms.

“Beginning this month, dairy farmers will earn Ksh65 per litre with a bonus of Ksh2 to be paid every quarter,” Ruto said.

The announcement comes after previous increases in the amount paid to milk producers. According to the President, the rate had risen from Ksh35 to Ksh60 per litre, with the latest adjustment expected to provide farmers with additional income.

Ruto also reported that Kenya’s national milk production had increased by one billion litres, pointing to the country’s efforts to strengthen the dairy sector.

The new payment rates come at a time when Kenya is experiencing a persistent milk shortage, with supplies to households, hotels and dairy outlets reportedly declining while retail prices have increased.

Farmers have attributed the situation partly to the high cost of animal feeds and falling milk production. Some producers have also opted to sell directly to consumers, seeking better returns than those offered by milk processors.

The challenge facing the government is to ensure that farmers receive better compensation without pushing the cost of milk beyond the reach of ordinary households.

Ruto also pointed to the role of New Kenya Cooperative Creameries (New KCC), particularly its dairy collection and processing operations in Eldoret.

Days before the announcement, the President outlined plans to decentralise the company’s eight factories, allowing each facility to operate independently and supply markets within its region.

The proposed changes are intended to reduce dependence on the Nairobi factory for distribution and lower transportation costs. The government expects the model to improve supply and help bring down retail prices.

Additionally, Ruto pledged to settle approximately Ksh400 million owed to dairy farmers by the end of October.

Whether the new payment rates and planned reforms will ease the current shortage while stabilising consumer prices remains a key question for farmers and milk buyers.

Source: https://x.com/Kenyans/status/2112484751596777796?s=20

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