President William Ruto has announced that dairy farmers will earn Ksh65 per litre of milk from October, alongside a quarterly bonus of Ksh2 per litre, as the country continues to grapple with a milk shortage.
Speaking during the 63rd Mashujaa Day celebrations at Kipchoge Keino Stadium in Eldoret on Tuesday, October 20, the President said recent agricultural reforms are intended to improve earnings for farmers across the country.
“Beginning this month, daily farmers will earn Ksh65 per litre with a bonus of Ksh 2 to be paid every quarter,” he said.
He noted that the price paid to milk producers had risen from Ksh35 to Ksh60 per litre, with the latest adjustment expected to raise their returns further.
President William Ruto during his ceremonial procession at the Mashujaa Day celebrations at Kipchoge Keino Stadium in Eldoret, October 20, 2026.
PCS
Ruto also reported that national milk production had grown by one billion litres.
He pointed to Eldoret’s dairy industry, where New Kenya Cooperative Creameries (New KCC) plays a key role in collecting and processing milk from farmers.
The announcement comes amid a persistent milk shortage that has driven up retail prices and reduced supplies to households, hotels and dairy outlets.
Farmers have attributed the shortage to high animal feed costs and declining milk production, with some opting to sell directly to consumers for better returns than those offered by processors.
Ruto’s new payment rates come as the government faces the challenge of improving farmers’ earnings while ensuring higher milk prices do not further burden consumers.
Days ago, Ruto outlined plans to decentralise New KCC’s eight factories, allowing each facility to operate independently and supply milk directly to markets within its region.
He said the changes are intended to reduce reliance on the Nairobi factory for distribution and cut transportation costs, with the government expecting the decentralised model to help address milk shortages and lower prices for consumers.
Ruto also pledged to settle approximately Ksh400 million owed to dairy farmers by the end of October.
President William Ruto holding camel milk packets during the opening of the modernised KCC factory in Kiganjo, Nyeri County on August 8, 2023.
Photo
Daily Nation