By Robert Mutasi 
President William Ruto has announced an increase in the price paid to dairy farmers to Sh65 per litre, alongside an additional Sh2 per litre bonus every quarter, in a move aimed at improving farmers’ earnings and strengthening Kenya’s dairy industry.
The new rate takes effect in October 2026, according to the President, who made the announcement during the 63rd Mashujaa Day celebrations at Kipchoge Keino Stadium in Eldoret, Uasin Gishu County, on Tuesday, October 20.
Ruto said the latest adjustment builds on previous increases in the price paid to milk producers, which has risen from Sh35 to Sh60 per litre before the new rate was announced.
He added that the country’s milk production had increased by one billion litres over the same period, a development he attributed to efforts to improve agricultural productivity and support farmers.
“Beginning this month, dairy farmers will earn Sh65 per litre, with a bonus of Sh2 to be paid every quarter,” Ruto said.
The announcement is expected to draw interest from farmers across the country, particularly in the North Rift region, where dairy farming supports thousands of households and supplies milk to processors and consumers.
Eldoret, which hosts the New Kenya Cooperative Creameries (New KCC), remains an important centre in the country’s dairy value chain. The President cited the facility as a key player in milk processing and the wider dairy industry.
The higher farm-gate price is expected to improve returns for farmers, although the overall benefit will depend on production costs, payment arrangements and how consistently processors implement the new rates.