Kenya's dairy farmers saw their pay jump by 8 percent under new rates announced by President Ruto at Eldoret's Mashujaa Day celebrations on October 20. Farmers now earn Ksh65 per litre alongside a quarterly bonus of Ksh2 per litre, building on an earlier increase from Ksh35 to Ksh60 per litre that had nearly doubled their returns.
The move addresses a critical shortage squeezing households, retailers, and businesses. Farmers have blamed high animal feed costs and weak processor prices for the supply crunch, pushing some to sell directly to consumers instead. Higher payments aim to encourage production while the government decentralises New Kenya Cooperative Creameries' eight factories to cut transportation costs and boost regional supply.
Data from the Kenya National Bureau of Statistics shows fresh milk production reached 5.5 million tonnes in 2025, up 3.5 percent year-on-year for the third straight year of growth. Industrial processors took in 1.09 billion litres, a first-time breakthrough and 11.5 percent above 2024's 909 million litres. National production grew by one billion litres overall.
Ruto pledged to settle approximately Ksh400 million owed to farmers by month-end. The government faces the dual challenge of raising farmer incomes without pushing consumer milk prices higher through supply, processing, and distribution costs.