Govt targets milk-powder exports in dairy overhaul
By Kenneth Mwenda, November 4, 2025Agriculture Cabinet Secretary Mutahi Kagwe has moved to tighten Kenya’s dairy sector structure and support processors in cutting production costs as the government pursues growth in milk-powder exports across Africa.
Kagwe, accompanied by Principal Secretary Jonathan Mueke, met milk processors under the Kenya Dairy Processors Association (KDPA) to discuss reforms aimed at making the industry more competitive and farmer-friendly. The meeting took place as the government works to position dairy as a key value chain for domestic food security and regional trade.
According to updates from the ministry, on Tuesday, November 4, 2025, the discussions centred on lowering production costs through access to quality and affordable feeds, shifting to a quality-based milk payment system, and improving the accuracy of industry data to shape policy.
Processors agreed to work with the ministry to strengthen disease control, adopt animal identification systems, and improve breeds. The government will also link dairy farmers to the Kenya Agricultural Data Information Centre (KADIC) through registration on the Kenya Integrated Agricultural Management Information System (KIAMIS) and participation in the Animal ID and Traceability System (ANITRAC).
The session also reinforced the government’s intention to push Kenyan dairy products into regional markets. Officials highlighted the continent’s unmet demand for dairy and the need to add value locally before export.
“Participants further emphasised the potential for exporting milk powder to other African markets, noting the continent’s vast and growing demand for dairy products,” the statement reads in part.
Exports and farmer gains
This aligns with the ministry’s wider push to expand Kenya’s agricultural exports while improving farmer earnings through processing and market access. The CS said the government would continue partnering with processors to modernise the dairy sector and ensure farmers benefit from investment and data-driven systems.
Kagwe said the dairy sector remains a priority under the administration’s agricultural agenda, adding that the ministry expects the reforms to reduce waste, boost standards, and improve income stability for farmers.
In a separate briefing, Kagwe also addressed concerns in the sugar sector, where the government has begun clearing arrears owed to workers in state-owned factories. He said:
“We are not refusing to pay. We are working within fiscal realities, but every shilling due will be honoured.” He added that most workers in the leased sugar mills will be absorbed by private operators, while others retire, as the government enforces accountability and full operation of the mills.