The Kenyan government, under the leadership of the Cooperative and Micro and Small Enterprises Cabinet Secretary, has revealed plans to establish a 3 billion Kenyan shillings ($20 million) milk price-stabilizing fund through New Kenya Cooperative Creameries (New KCC). This initiative aims to manage milk surpluses during high production periods, converting excess milk into dry milk powder for strategic reserves. He emphasized the government's commitment to stabilizing milk prices amid expectations of a market glut, highlighting the significance of the dairy subsector in the national and rural economy under the Bottom-Up Economic Transformation Agenda. The government plans to address challenges in the dairy subsector, including high breeding costs, disease prevalence, and limited value addition, with initiatives such as subsidizing animal feed and providing milk coolers to farmers through their cooperatives.
Furthermore, the government is undertaking a $16 million modernization and expansion program for the New KCC Plants and equipment, increasing the processor's daily processing capacity from 300,000 to 800,000 liters. The government's initiatives, including subsidizing animal feed and supporting farmers with milk coolers, aim to address challenges faced by the dairy subsector.