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.

The Drivers of Growth

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.

• The Price Factor: Processors like Brookside and New KCC have been engaging in a price war, pushing payments to farmers up to Sh50 per litre in some regions.
• The Consumption: Domestic consumption of processed milk, yoghurt, and cheese has spiked as the middle class expands.
• The Challenge: Despite the record, the country still faces a deficit during dry spells. The challenge now is preservation and powder production to stabilize supply year-round.

Money in the Pails

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.