Milk farmers will earn KSh65 per litre from October, President William Ruto has announced, as the country continues to experience milk shortages.
Speaking during the 63rd Mashujaa Day celebrations at Kipchoge Keino Stadium in Eldoret on Tuesday, October 20, Ruto said the new rate was part of ongoing agricultural reforms aimed at improving farmers’ earnings.
“Beginning this month, dairy farmers will earn KSh65 per litre with a bonus of KSh2 to be paid every quarter,” Ruto said.
The President said the price paid to milk producers had increased from KSh35 to KSh60 per litre, with the latest adjustment expected to further improve farmers’ returns.
Ruto also said national milk production had increased by one billion litres.
According to the Kenya National Bureau of Statistics (KNBS) Economic Survey 2026, fresh milk production reached 5.5 million tonnes, equivalent to about 5.5 billion litres, in 2025.
The figure represented a 3.5 per cent increase from the previous year and marked the third consecutive year of growth.
The KNBS report also showed that milk intake by industrial processors crossed the one billion litre mark for the first time, rising by 11.5 per cent from 909 million litres in 2024.
The announcement comes at a time when Kenya is facing a milk shortage that has affected supplies to households, hotels and dairy outlets while pushing up retail prices.
Farmers have linked the shortage to high animal feed costs and falling milk production. Some have also opted to sell directly to consumers, saying the returns are better than those offered by processors.
The new payment rate comes as the government seeks to improve earnings for dairy farmers while keeping milk prices affordable for consumers.
Ruto recently announced plans to decentralise the eight New Kenya Cooperative Creameries (New KCC) factories, allowing each facility to operate independently and supply milk directly to markets within its region.
The government expects the move to reduce reliance on the Nairobi factory, lower transportation costs and help address milk shortages.
Ruto also pledged to settle about KSh400 million owed to dairy farmers by the end of October.
