The government will give Sh1 billion to Kenya Cooperative Creameries to boost the market for dairy farming in the country.
President William Ruto said the government will give Sh1 billion to help the dairy firm stabilize milk prices for farmers.
Ruto has directed New KCC to review milk prices and buy from local farmers at Sh53 per litre.
The President said the money injected would strengthen the sector and help enhance the capacity of dairy farmers to increase production.
He spoke at Kobujoi market in Aldai Constituency after launching a Sh300 million last-mile project and inspecting of the ongoing construction of a modern market in the area.
He said there was a milk shortage in the country hence the government plan to support farmers to produce more.
"As from September, the farmers supplying milk to all KCC centres will be paid Sh50 per litre and the extra Sh3 will be remitted to cooperatives and SACCOS and also take care of transportation costs," he said.
He said the state was now regulating the importation of powder milk which has been undermining production by local farmers.
"We have had powder milk flooded in our market, but I assure farmers that this will stop. We have to support our farmers to produce more,” Ruto said.
He said over two million dairy farmers will benefit from the government economic stimulus programme to help them enhance production.
Ruto indicated that Kenya has the potential to produce high-capacity milk and said the ongoing installation of processing infrastructures including milk coolers is a strategic initiative to reduce wastage.
He was with CS for Energy Opiyo Wandayi, CS for Lands Housing, Public Works and Urban Development Alice Wahome, Nandi Governor Stephen Sang and his Siaya counterpart James Orengo among others.
