The Kenyan government has pledged to install milk coolers in all wards nationwide as part of the Kenya Co-operative Creameries (KCC) modernization program.
This was announced by the Cooperatives and Micro and Small Enterprise Cabinet Secretary, Simon Chelugui, as the government plans to eliminate middlemen and empower dairy farmers who often face challenges related to storage, preservation, high feed costs, and limited market access.
Chelugui is also planning to reinstate the stalled milk coolers’ program, with the distribution of 650 milk coolers already in progress.
The government is actively working on establishing a Ksh.3 billion milk price-stabilizing fund through the New Kenya Cooperative Creameries.
This fund will serve to mop up excess milk from farmers, convert it into long-life products, and store it in the Strategic Food Reserve, ensuring a stable and prosperous dairy subsector.
“The government will mop up the milk, convert it into powder milk, package it, and store it in the Strategic Food Reserve. As soon as we get to January, even the private processors will be free to buy the same dry milk at a price the regulator will provide,” said Chelugui.
The dairy subsector in Kenya has faced challenges ranging from high breeding costs to disease prevalence, limited value addition, and market access.
The New KCC stabilizes both producer and consumer milk prices by efficiently managing milk surpluses during glut periods.
This involves converting excess milk into a strategic food reserve in the form of dry milk powder, which can be released back into the market during dry seasons.