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Kenya’s dairy sector hits a historic high as formal milk deliveries reach 1 billion litres in 2025, driven by better prices and favorable weather.

It is a good time to be a dairy cow in Kenya. The Kenya Dairy Board (KDB) has announced a historic milestone: formal milk intake by processors hit a record 1 billion litres in 2025, signaling a massive boom in the sector.
The figures represent a significant leap from the previous year, driven by favorable weather conditions, improved fodder availability, and better farm-gate prices. For the first time, the formal market is effectively competing with the informal "hawker" trade, securing more quality milk for processing.
KDB Managing Director Margaret Kibogy attributed the success to government interventions, including the subsidy on fertilizer which trickled down to fodder production. "Farmers are treating dairy as a business, not a hobby," she noted.
For the rural economy, this is a Sh50 billion injection directly into households. The "White Gold" is proving to be as valuable as coffee or tea. If the trend continues, 2026 could see Kenya becoming a net exporter of dairy products to the region.
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