State kicks off Sh1.45b milk coolers installation in 40 counties
Business
By
Esther Dianah
| Jul 25, 2025
Forty counties are set to benefit from 230 milk coolers worth Sh1.45 billion that are being distributed and installed across the country to boost the dairy sector.
The initiative, launched last month by President William Ruto in Meru County, aims to increase production and cushion farmers against post-harvest losses.
Meru County received the first batch of 15 bulk milk coolers.
Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe led the distribution of an additional eight bulk milk coolers to dairy farmer cooperatives in Nyeri under the Livestock Value Chain Support Project.
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According to the Ministry of Agriculture, the project will facilitate the transformation of smallholder farmers' systems.
This will enable their transition from subsistence to commercial farming through increased value addition and market participation.
Speaking at the flag-off in Nyeri, the CS said the coolers will be pivotal in enhancing value addition and cooperative milk handling capacity, which is a key part in addressing infrastructural challenges that have hampered the dairy industry.
“Dairy farmers across the country play a significant role in contributing to the country’s milk basket. Therefore, the supply of these milk coolers will not only boost storage but also improve milk quality, marketability, and ultimately farmer incomes, which is our primary goal. The 230 milk coolers will increase national chilling capacity by 475,000 litres daily,” said CS Kagwe.
In efforts to boost the dairy sector, the investment will go to both private and public milk processors to ensure that all milk produced by farmers is collected, processed for the local market and exported to other markets.
The dairy industry, which is also a backbone of Kenya’s agricultural economy, contributes about four per cent to the gross domestic product (GDP) and supports over 2 million people directly and indirectly.
In 2024, Kenya produced an estimated 5.3 billion litres of milk, 80 per cent of which came from smallholder farmers.
Each year, the country loses an estimated six per cent of marketed milk to post-harvest losses, which is approximately 175 million litres per year valued at Sh7.9 billion.
This initiative aligns the Ministry's projection to export one billion litres of milk annually, generate 500,000 jobs in the sector, double milk production from the current 5.3 billion litres annually to 10 billion litres by 2027 and utilise 70 per cent of the current processing capacity.
The CS, however, noted that productivity, inadequate breeding stocks and feeding, diseases and pests, poor infrastructure, post-harvest losses, and emerging challenges occasioned by climate change must be addressed efficiently to maximise the farmers’ efforts.
He added that the government intends to lease available arable public land for large-scale farming of fodder, sunflower and other requisite ingredients that will bring down the cost of production to scale up dairy productivity.
“We must adopt practical and viable interventions to transform the dairy sector. We must synergise our efforts to increase production and productivity through commercialisation of pasture and fodder production, enhance production of quality sexed semen, and a mass livestock vaccination drive that will ensure that our meat and dairy products meet international standards and qualify to sell on their shelves,” Kagwe said.