Kenya’s Dairy Dilemma:From Proud Producers to Struggling Survivors
Step into the heartbeat of East Africa, Kenya – whether it’s dawn, dusk, or the hours in between, you’ll witness a nation immersed in a timeless ritual: "tea sipping" this revealing the unbreakable bond between Kenyans and their beloved cup of tea
Kenya boasts of a thriving dairy industry, serving as the powerhouse of East Africa’s dairy dominance boasting with a staggering 10 billion liters produced annually.
In this milky realm, smallholder farmers are the unsung heroes, contributing over half of the country’s milk output. With 5.1 million dairy herds and a whopping 80% of producers in their ranks, these farmers fuel Kenya’s dairy might.
But wait, there’s more to this creamy tale! Milk isn’t just a beverage; it’s an economic powerhouse generating over Sh200 billion annually. It’s the lifeline for 1.5 million households woven intricately into the dairy value chain.
Kenyans' love for milk knows no bounds. From the morning tea ritual, where it’s the star, to the irresistible allure of creamy yoghurts lining every supermarket shelf, milk is an integral part of Kenyan life infact Kenyans are the largest consumer of dairy among their East African counterparts with a staggering 110 liters per capita milk consumption and an ever-growing demand expected to rise with the population.spare the other dairy products whose consumption is on an all time high and their prices ever above the ceiling boards.
In Kenya’s vibrant dairy landscape, . Kiambu leads the pack as the largest milk producer, followed closely by Nyandarua and Murang’a coming at third position.
Beneath the creamy façade, Kenya's dairy story takes a different turn. Amidst high demand and fervent consumption, the sector grapples with a downward spiral and a staggering discrepancy between what consumers pay for milk and what these devoted farmers receive in return. The plight of these farmers, the unsung heroes behind every pint of milk, stands as a testament to the gravity of wage disparity.
To comprehend this disparity, one must venture into the heart of a Kenyan dairy farm. Amidst the picturesque landscapes, the farmer grapples with challenges unseen by most. Their toil, akin to a battle for survival, painting a harsh portrait of their relentless dedication to ensure an uninterrupted supply of milk. The shiny aluminum buckets, symbols of their labor, traverse the roads to cooling points or adorn the milk ATMs in urban neighborhoods.
Yet, behind this facade lies a tale of grit and adversity. The struggle of these farmers mirrors the enduring battle against the odds, their unwavering commitment ensuring that your morning cup of milk remains a constant delight.
Recent heavy rains have halted operations nationwide, driving up costs for consumers yet the farmer is still shouldering the heavier burden.
As The country continues to grapple with the aftermath of heavy rains, halting numerous activities,floods have hit dairy farmers hard, impeding milk delivery and exacerbating the challenges posed by poor roads, especially in rural Kenya.
Inadequate storage, infrastructure issues, diseases, delayed payments, and exorbitant prices for supplements burden these farmers leading to further setbacks, prompting some farmers to sell their milk directly in an attempt to recover losses.
Despite hurdles, Kenya’s dairy industry does not lack its positive stories
The dairy sector in Kenya has seen significant progress and success despite challenges. Stretching back over a century to the importation of exotic dairy cattle in the early 1900s, Kenya's dairy industry has evolved remarkably. Initially driven by colonial farmers with large-scale farms, the industry excluded Africans from commercial participation until the establishment of the Kenya Dairy Board in 1958 From that point, indigenous Kenyans began actively engaging in dairy farming. Presently, the dairy landscape has transformed into a productive sector, attracting investments from farmers of all scales. Notably, technology, like the Smart Cow App developed by a Nairobi-based software firm, has played a pivotal role in streamlining inventory management for these farmers, marking a new era in the industry's efficiency and advancement.
Some of the success story farms in the dairy sector you may wish to look into are:
Asalk Livestock in Isiolo
Mweiga Estate in Nyeri
Hedge Farm Limited in Mombasa
Kapiti Dairies Limited in Nairobi
Kedoong Ranch Limited in Naivasha
Kilifi Plantation Limited in Kilifi
Lukenya Ranching and Farming in Athi River
Mount Kenya Game Ranch in Nanyuki
Olsuswa Farm Limited in Naivasha
Silibwet Dairy in Bomet
Also here are some great companies making the great stories better and contributing to more of the success stories of the bustling dairy sector.
Capwell Industries Ltd introduced YOLA, a novel cereal milk drink, while Organo Milk Ltd launched Organo Fresh, touting it as real free-range milk. Happy Cow Ltd rolled out Yogies Nutri Yoghurt. New products and variations have emerged: lactose-free milk by Bio Foods Products, later challenged by New KCC; Bio Greek Style yoghurt and Bio Active Probiotic yoghurt were introduced alongside Bio Superlite featuring Super Fruits in five variations—marketed as a fat-free, sugar-free, all-natural healthy option.
Kulan Foods Ltd ventured into camel milk and flavored camel milk yoghurt. Eldoville Dairies had earlier introduced Whey Cool in 2015, aimed at offering a healthier option for low-income families and schoolchildren. Raka Cheese, through Palm Edge, followed suit in 2019 with Whey-2-Go, their version of a whey drink.
The government plans to modernize Kenya Cooperative Creameries' plants, installing milk coolers nationwide to increase milk processing capacity.
Brookside Dairy stands as East Africa's leading dairy company with operations across Kenya, Tanzania, and Uganda, boasting the largest farmers' network and milk storage capacity in the region.
Murang'a Co-operative Creameries (MCC), established in 2019 by the Murang'a County Government, aims to boost the local economy by sourcing milk directly from small-scale farmers at favorable rates, aligning with Kenya's BIG FOUR Agenda on Manufacturing and Industrialization.
Highland Creamers and Foods (HCF), founded in 2015 operates a significant processing plant in Kisii highlands, processing a minimum of 200,000 liters of milk daily. They plan to expand into high-value dairy products like cream, yogurt, butter, and cheese.
Kinangop Dairy, initially part of Mkulima Creameries Ltd. since 1995 engages in production, distribution, and packaging of various dairy products in the Kinangop area. They maintain a direct relationship with local dairy farmers and actively promote sustainable development in the environment.
SpinKnit, established in 1996 post the dairy sector's liberalization, initially operated as a small dairy processing plant in Nakuru with just 3 distribution vehicles. Presently, the company boasts a fleet of over 150 vehicles at its Nairobi site in the Industrial Area.
Githunguru, founded in August 1961with 31 members, began with a solitary collection center, which has now expanded to 58 fully computerized centers. The cooperative has seen substantial growth, currently comprising 17,000 registered members, achieving an annual turnover of Kshs 3 billion, and processing an average of 170,000 liters of milk daily.
Lattana Dairy: With years of experience in milk production, Lattana Dairy ensures top-quality products by meticulously overseeing every stage of the process, from farm to shelf. Collaborating closely with selected co-operatives and farmers, they conduct daily quality control tests to maintain high standards. Based in Murang’a County, they operate optimized trucks, swiftly transporting milk from local dairy farms to the factory within hours of milking. Employing rigorous quality checks and tracking systems, they can trace each unit of milk back to its source. Alongside a range of products like yogurt, milk powder, and fresh packaged milk, they educate local farmers on innovative technologies to boost milk production.
Happycow Kenya: This dairy manufacturer focuses on producing and processing milk to offer diverse, high-quality dairy products. Distributing their range, including yogurt, fresh milk, cheese, and fermented products, throughout Kenya and East Africa, Happycow Kenya is committed to delivering fresh farm-to-table products. Operating from offices in Nakuru, Nairobi, and Mombasa, they aim to provide an extensive variety of dairy-based products.
Palmhouse Diaries: Situated in Githunguri, Kiambu, Palmhouse Diaries serves as a major supplier of dairy products to prominent establishments in Nairobi, including hospitals and five-star hotels. Collaborating with local farmers in Kiambu, they offer a range of dairy products, from pure cream to yogurt and processed, packaged milk. Recognized as a leading dairy processing firm in Kiambu County, Palmhouse Diaries works closely with cooperatives to support farmers in maximizing the benefits of dairy farming.
In recent years, the dairy farming industry in Kenya has witnessed significant changes driven by increased demand for milk products due to population growth. Technological advancements have made it a lucrative source of income for many farmers, yet small-scale production remains prevalent. Efforts are being made by the government and county authorities to address these issues, but further intervention is needed to support the dairy farming community.
Government backing, and infrastructure upgrades could rejuvenate this once-thriving sector. The Ministry of Agriculture, in December 2021, revised the Cooperative Act to bolster the policy framework.
Stronger oversight and penalties for misuse of authority could enhance the appeal of cooperatives. Through the Kenya Dairy Board (KDB), the government launched the Kenya Dairy Industry Sustainability Roadmap 2023–2033, aiming to double dairy farmers' income by increasing milk production per cow.
The roadmap targets 80% of marketed milk passing through the cold chain and 60% being formally processed.
It also plans to provide on-farm coolers for farmers producing over 50 liters of milk daily and not near a cooling facility. Importation of powdered milk used by cartels to flood the local market has ceased. Additionally, the government's initiatives, like allowing farmers to plant fodder on public land to reduce animal feed costs, signal hope for the industry's revival, despite its previous economic impact.
We remain hopeful that collective efforts, education, and robust government support will reignite Kenya’s dairy sector, promising a prosperous future where challenges are overcome, and every drop of milk fuels the nation’s success.