The Kenya Dairy Board (KDB) is intensifying efforts to enhance milk prices and improve returns for dairy farmers, as part of comprehensive reforms aimed at revitalizing the dairy sector. KDB Chairperson Genesius Mugo expressed concerns over persistently low farm gate prices, stating that despite significant investments in dairy production, farmers continue to earn minimal returns. He emphasized the necessity for fair pricing throughout the dairy value chain, cautioning that the current low prices are unsustainable.

In a recent development, the KDB has urged legislators to expedite the finalization and gazettement of the minimum milk price for the upcoming long rains season. The government had previously set the minimum price at 50 shillings per liter to shield farmers from exploitation by dairy processors. Mugo highlighted that this price remains effective until new rates are officially adopted by the Ministry of Agriculture. He noted that the forthcoming minimum price aims to protect dairy farmers from price fluctuations during the anticipated long rains, which often lead to milk gluts.

Furthermore, a 2024 study commissioned by the KDB and conducted by the Tegemeo Institute of Agricultural Policy and Development revealed that feed costs constitute between 43% and 58% of total milk production expenses, making them the largest cost driver. The study also found that milk yields vary significantly across different production systems, with zero-grazing farms yielding an average of 3,600 liters per cow annually, while open grazing systems produced approximately 2,165 liters per cow. These insights are intended to inform policy and regulatory decisions, including interventions to ensure fair prices for both producers and consumers.