The dairy industry in Kenya is one of the most vital contributors to the country’s agricultural GDP, accounting for a significant 14%. With an annual production of approximately 5.2 billion litres of milk, the industry is a major source of livelihood for over 4 million people who depend on smallholder dairy farming.
Smallholder dairy farmers, who own between 1 and 3 cows, produce about 80% of the total milk. The industry’s contribution to the economy cannot be overstated, as it supports the entire dairy value chain, from production, processing, marketing, and distribution.
Kenya has the highest milk consumption per capita in Sub-Saharan Africa, with each person consuming about 78 litres of milk per year compared to Uganda’s 65 litres. However, the industry has faced its share of challenges, such as the recent surplus of over 50 million litres of milk due to the El Nino rains. The government provided New KCC with Ksh 500 million to purchase, dry, and store surplus milk as part of the strategic food reserve. Additionally, the government has invested Ksh3.8 billion in modernization programs across several plants to enhance processing capacity and efficiency.
