Ruto’s order of Sh50 per liter set to boost dairy farmers’ earnings
Dairy farmers in Kenya are poised to experience increased incomes following a directive from President William Ruto to New KCC to commence purchasing a liter of milk at Kes50 starting March 2024.
The latest directive comes just months after Agriculture Cabinet Secretary Mithika Linturi announced in November that New KCC had received Kes1 billion to help stabilize prices, which had dipped to Kes35 per liter.
Dr Ruto also announced that the government has allocated Kes5 billion to modernize New Kenya Co-operative Creameries (KCC) to enhance its efficiency and meet the farmers’ needs.
“Starting July 1, farmers will be paid every 15 days. This is our strategy to eliminate milk hawking, which occurs when farmers are not paid for two to three months,” he stated during the commissioning of the upgraded New KCC in Nyahururu, Laikipia County.
The President emphasized that his administration will assist farmers in acquiring high-quality animal breeds that consume less feed, thereby maximizing profits.
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He noted that the government would also facilitate farmers’ access to seasonal credit through the Agricultural Finance Corporation, with an allocation of KSh10 billion for this purpose.
The New KCC Nyahururu Factory is projected to serve more than five counties, processing a minimum of 150,000 liters of milk daily, up from the current 80,000 liters. This initiative aligns with the government’s plans to boost milk production to over 10 billion liters annually to stimulate growth.
Last August, Dr Ruto commissioned the modernized Kenya Co-operative Creameries Kiganjo Factory in Nyeri County, now equipped with new product lines capable of processing camel milk and drinking water.
Currently, Kenya boasts approximately 6.1 million dairy cows, yielding an average of 607 kg per cow per year, resulting in a total annual production of about 3.7 million kg of milk. The sector is estimated to sustain the livelihoods of around 1.8 million smallholder farmers in Kenya.
