President William Ruto has said the government will not tax yellow maize and all raw materials used to make animal feeds, in the coming financial year
Ruto said the government will also rent out farms to make hay and avail it to farmers at a cheaper cost.
He said all materials for the production of dairy products will be zero-rated.
Ruto said the government will give Meru Central Dairy Cooperative Union Sh100 million for farmers to set up an animal feed factory.
He spoke when he graced the 8th Annual Dairy Farmers Field Day.
The theme was 'Training farmers on commercial dairy farming.'
The company has already availed land and mooted Sh200 million for the animal feeds factory.
On Artificial Insemination, he said the government has already used Sh1 billion to make bull stations in Kabete, Kitale and Kiambu.
"We understand that heifers are not readily available making it a challenge for dairy farmers," he said.
He said they will lower the cost of Artificial Insemination.
Currently, sexed semen is available at Sh5000 and Sh8000
"In this financial year, we have set aside 400 million for the production of 500,000 sexed semen so that by December the price of sexed semen will be Sh1500," Ruto said.
He challenged the Meru Dairy cooperative union to maximise the production of milk to be able to sell outside the country.
He said they have set up 600 million for upgrading KPCU in Meru and Sagana.
Ruto said they will now start packaging of tea and coffee and the government will remove taxes on the packaging of the commodities.
He said the national government will build seven markets in Meru.
On stalled road projects Ruto said they have set aside Sh200 million in the budget to complete them.
Meru Dairy CEO Kenneth Gitonga said the average production per farmer is five litres and per day the factory produces 400,000 litres.
"We want to raise our production from an average of 5 litres per farmer in a day to 10 litres per day and we want to have the capacity to produce one million litres per day in our factory," Gitonga said.
Ruto was accompanied by Meru Governor Kawira Mwangaza, Meru Senator Kathuri Murungi, Meru MPS, Trade CS Simon Chelugui, and Agriculture CS Mithika Linturi among others.
Mwangaza said the animal feeds are very costly and most are substandard.
"These farmers are lamenting on animal feeds because it is affecting the production they want to set up a factory and we urge you to help them put up a factory to make animal feeds," Mwangaza said.
Agriculture CS said they will lower the production of sexed semen.
"We have partnered with France and acquired a machine that can produce a high number of sexed semen," he said.