STATE INTERVENES: President Ruto Unveils Ksh 65 Per Litre Minimum Price Floor For Dairy Farmers

A major structural reform across the agricultural sector has been initiated to boost livestock earnings, enforce fair pricing, and overhaul state-owned processing infrastructure.

For months, smallholder dairy producers, cooperative societies, and rural agricultural lobbies raised concerns over unpredictable market rates, delayed payments, and high operational costs.

However, executive policy announcements delivered during national public engagements in the Rift Valley region have established direct price floors and statutory incentive structures designed to maximize returns for livestock keepers nationwide.

The fresh agricultural framework was announced by President William Ruto, who confirmed that dairy farmers will receive a guaranteed baseline price of Ksh 65 per litre for raw milk deliveries.

Under the newly operationalized plan, the price hike is supplemented by a Ksh 2 per litre quarterly performance bonus structure aimed at rewarding production consistency and quality standards.

To further stabilize the dairy supply chain, the President announced plans to decentralize the state-run New Kenya Cooperative Creameries (New KCC)—granting local farmers direct equity and operational oversight over processing plants—while committing to clear approximately Ksh 400 million in outstanding milk payment arrears by the end of the month.

The policy interventions highlight central government strategy to mirror recent structural overhauls executed within the tea, coffee, and sugar subsectors.

Agricultural economists note that raising milk prices from historical averages of Ksh 35 per litre to Ksh 65 directly restores profitability for rural households, incentivizes farm-level investment, and accelerates national milk production, which has already expanded by one billion litres.

As regional cooperatives align their accounting frameworks with the new payment terms, government authorities maintain that empowering dairy farmers will strengthen food security and cushion rural economies against inflationary pressures.

https://www.the-star.co.ke/news/2026-10-20-sh65-per-litre-ruto-unveils-fresh-deal-for-dairy-farmers

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