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- President William Ruto announced a new farmgate milk price of KSh 65 per litre, up from KSh 60, effective October 2026
- Dairy farmers will also earn an additional KSh 2 per litre bonus paid out every quarter under the new structure
- Ruto pledged to clear KSh 400 million in outstanding payments owed to farmers by the end of October 2026
President William Ruto announced on October 20, 2026, that dairy farmers across Kenya will receive KSh 65 per litre for their milk starting this month, an increase from the current KSh 60, with an additional KSh 2 per litre bonus to be accrued monthly and disbursed every quarter.
Source: Facebook
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The President made the announcement during his Mashujaa Day address in Eldoret, a region where the New Kenya Cooperative Creameries (New KCC) play a significant role in the dairy value chain.
Dairy prices and New KCC reforms
Ruto noted that farmgate prices had already risen sharply in recent years, climbing from KSh 35 to KSh 60 per litre, and that national milk production had grown by one billion litres during the same period.
The latest adjustment is designed to reinforce those gains and improve cash flows for dairy households.
Alongside the pricing changes, the government outlined plans to restructure New KCC by granting individual factories greater operational autonomy.
"In the dairy sector, national milk production has increased by one billion litres, while the price paid to farmers has risen from KSh 35 to KSh 60 per litre, nearly doubling their earnings per litre. This progress is being felt here in Eldoret, where New KCC plays a central role in the dairy industry. Beginning this month, dairy farmers will earn KSh 65 per litre and an additional bonus of KSh 2 per litre every month, payable quarterly"
Under the proposed model, each factory would be owned by farmers in its local region rather than managed centrally from Nairobi.
The government argues the move will reduce transport costs, improve milk collection efficiency and lessen dependence on the Nairobi facility for national distribution.
The government has injected KSh 8 billion into New KCC over the past three years to stabilise its operations.
Ruto also committed to settling KSh 400 million in overdue payments to dairy farmers before the end of October, a pledge aimed at relieving liquidity pressure on suppliers.
Livestock and trade developments
The president cited a wider set of agricultural milestones alongside the dairy announcements. Annual artificial inseminations have risen from 900,000 to 1.28 million, while the cost of sexed semen has dropped from KSh 8,000 to KSh 1,400.
More than 22 million livestock have been vaccinated, and over 52,000 animals have been restocked for 10,000 households across 16 counties. Drought insurance under the DRIVE programme now covers 1.6 million pastoralists in 21 counties.
On the trade front, Ruto pointed to the Economic Partnership Agreement with the European Union, which came into force in 2024; the Comprehensive Economic Partnership Agreement with the United Arab Emirates; concluded negotiations with China; and continued access to the American market through the extension of AGOA, with broader trade negotiations with the United States ongoing.
The government's central message from Eldoret was that higher farmgate prices, farmer-led ownership structures and expanded export markets are intended to shift dairy farming from subsistence activity into a more commercially viable sector.
Source: TUKO.co.ke