• Data from the United States Department of Agriculture indicates that only 15–20% of milk is processed through regulated, formal channels. Most milk circulates in informal markets such as roadside vendors, milk bars, and direct farm sales.

On February 23, 2026, Principal Secretary for Livestock Development Jonathan Mueke flagged off nine solar-powered bulk milk coolers in Kericho County.

He announced the initiative on his official X account, noting that the coolers were part of the Livestock Value Chain Support Project (LVCSP).

“These solar-powered milk coolers are a direct investment in the dairy farmer—reducing post-harvest losses, preserving milk quality, and enabling farmers to earn more from their milk,” Mueke said.

Kericho Governor Eric Mutai, nominated Senator Joyce Korir, and Senate Majority Leader Aaron Cheruiyot attended the event, highlighting the role of infrastructure in strengthening dairy value chains.

Dairy Farming and Kenya’s Economy

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Food systems analysis shows that Kenya’s dairy sector contributes 14–17% of agricultural GDP and 3.5–4% of national GDP. The sector plays a vital role in income generation, employment, and food supply.

National milk production is estimated at 5.2–5.76 billion litres annually, with smallholder farmers contributing about 80% of the total output.

Formal vs. Informal Milk Markets

Data from the United States Department of Agriculture indicates that only 15–20% of milk is processed through regulated, formal channels. Most milk circulates in informal markets such as roadside vendors, milk bars, and direct farm sales.

Formal sector intake reached 908.4 million litres in 2024, a 12% increase compared to the previous year. In 2025, intake exceeded one billion litres, driven by stronger collection networks and supportive policies.

Socio-Economic Impact

The dairy sector directly supports the livelihoods of approximately 1.8 million smallholder households and provides employment across the value chain. Estimates place direct dairy-related jobs at around 700,000.

A study by the Kenya Institute for Public Policy Research and Analysis (KIPPRA) found that farmers add value at every stage of production, increasing returns and creating employment.

“Farmers create employment at each level of the value chain. The dairy value chain as a whole is estimated to provide about 700,000 jobs,” the report noted.

Analysts point out that Kenya’s dairy market has untapped potential due to its large informal segment and underutilized processing capacity.

Expanding cold storage, extension services, farmer-to-processor linkages, and value-added products could formalize the sector, improve quality, and boost incomes.

Strategic Asset for National Development

Kenya’s dairy sector is more than a source of milk—it is a strategic economic asset. Supporting farmers, improving productivity, and formalizing the value chain are essential to unlocking its full potential.

Investments such as solar-powered milk coolers demonstrate how dairy farming can drive rural livelihoods, GDP growth, and national food security.

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