The government has outlined a series of interventions aimed at transforming Kenya’s dairy sector, including a Ksh 1.428 billion investment in milk cooling infrastructure, cheaper breeding technologies, and measures to address animal feed challenges.
Speaking before Parliament, Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe, accompanied by Kenya Dairy Board (KDB) Managing Director Dr Kimutai Maritim, detailed ongoing efforts to increase productivity, lower production costs, and improve earnings for dairy farmers across the country.
A key highlight of the government’s plan is the rollout of 230 bulk milk coolers, including 200 solar-powered units, which are expected to support more than 115,000 dairy farmers in 41 counties. The cooling infrastructure will help dairy cooperatives aggregate an estimated 475,000 litres of milk daily while saving about Ksh 73 million annually in electricity costs.
The government has also significantly reduced the cost of sexed semen, cutting prices by 85.7 per cent from Ksh 7,000 to Ksh 1,000 per dose, a move expected to enhance dairy genetics and boost milk production.
How Kenya plans to address recurring feed shortages and high feed costs
To address recurring feed shortages and high feed costs, the Ministry has launched the National Animal Feeds Development Strategy alongside a Strategic Feeds Reserve aimed at stabilising feed supply across the country.
Further interventions include the Land Commercialisation Initiative, which seeks to open up land under the Agricultural Development Corporation (ADC) and the Kenya Agricultural and Livestock Research Organisation (KALRO) for fodder production.
The government is also leveraging private sector investment to strengthen the feed value chain. Among the projects highlighted were De Heus’ Ksh 300 million feed mill in Athi River and an agreement with Al-Dahra involving 200,000 acres at Galana-Kulalu for large-scale agricultural production.
In addition, duty waivers and VAT exemptions on key raw materials used in feed production have been introduced to help lower costs for manufacturers and farmers.
Kagwe noted that regular cost-of-production studies, currently placing the average cost of producing a litre of milk at Ksh36.2, will continue to guide efforts aimed at ensuring fair producer prices.
The Kenya Dairy Board said it remains committed to working closely with the Ministry of Agriculture and Livestock Development to ensure the investments translate into tangible benefits for farmers and contribute to a more resilient and competitive dairy sector.
