The government has unveiled a comprehensive intervention to cushion dairy farmers from market unpredictability by allocating Ksh400 million to stabilize milk prices and safeguard farmer incomes.
The announcement was delivered by Prime Cabinet Secretary Musalia Mudavadi on behalf of President William Ruto during the 103rd Ushirika Day celebrations at KICC on July 12, 2025.
In addition to the stabilization fund, Mudavadi revealed that Ksh4.6 billion has been invested in upgrading milk processing infrastructure across the country.
This includes Ksh550 million earmarked for facility improvements, with Ksh50 million going toward a new processing plant in Narok and Ksh100 million for the enhancement of the Runyenjes cooling facility.
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He added that the government has also disbursed Ksh100 million to support the construction of the Meru Dairy Cooperative and distributed milk coolers to various cooperatives to improve quality and reduce post-harvest losses.
President Ruto emphasized the modernization of New Kenya Co-operative Creameries (New KCC), positioning it as a strategic buyer during milk surplus periods. In a recent agreement, New KCC committed to purchasing 65,000 litres of milk daily from Kirima Dairy Cooperative Society in Kirinyaga County, a move expected to ease pressure on over 6,000 farmers affected by reduced off-take volumes.
Previously, New KCC had scaled down its intake from 45,000 to 25,000 litres, leaving farmers with unsold milk and mounting losses. Kirinyaga CEC for Cooperatives and Trade, Calbert Njeru, confirmed that the crisis prompted urgent negotiations, resulting in a revised off-take plan to clear the backlog.
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“We’ve agreed that New KCC will now collect a minimum of 65,000 litres daily to resolve the storage bottlenecks,” Njeru said, assuring farmers that logistical adjustments are underway to prevent future disruptions.
The county government of Kirinyaga is also working closely with stakeholders to streamline operations and ensure long-term stability in milk collection and pricing.
By Masaki Enock
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