The Government has stepped up efforts to transform Kenya’s dairy and sugar sectors through investments aimed at reducing production costs, improving productivity, increasing farmer incomes and strengthening sector governance.
Appearing before Parliament to respond to questions on the agriculture sector, Agriculture Cabinet Secretary Sen. Mutahi Kagwe outlined a series of interventions being implemented to address challenges affecting farmers and stabilize key agricultural value chains.
In the dairy sector, the Government is investing KSh1.428 billion in 230 bulk milk coolers, 200 of which are solar-powered.
The investment is intended to strengthen milk aggregation and reduce post-production losses while helping dairy cooperatives cut operational costs.
According to the Ministry, the solar-powered coolers are expected to save dairy cooperatives approximately KSh73 million annually in electricity costs. The equipment is also expected to benefit more than 115,000 farmers across 41 counties, supporting the aggregation of an estimated 475,000 litres of milk daily.
The Government has also introduced measures to improve dairy genetics and boost productivity by reducing the price of sexed semen by nearly 65 per cent.
Under the subsidy programme, the price of sexed semen has been reduced from KSh2,900 to KSh1,000 per dose, making improved breeding genetics more accessible to farmers.
The interventions also target the high cost of animal feeds, which remains a major challenge for livestock producers.
The Government has launched the National Animal Feeds Development Strategy and established a National Strategic Feeds Reserve as part of efforts to improve the availability and affordability of livestock feeds.
In addition, the Land Commercialization Initiative is opening up underutilised Government land, including land managed by the Agricultural Development Corporation (ADC) and the Kenya Agricultural and Livestock Research Organization (KALRO), for commercial fodder production.
The Government is also working with private-sector players to expand feed production and secure fodder supplies.
Among the initiatives is De Heus’ KSh300 million feed mill in Athi River, while an agreement with UAE-based Al-Dahra will see the company utilise up to 200,000 acres at Galana-Kulalu for agricultural production.
Tax measures have also been introduced to support the animal-feed industry, including duty waivers and VAT exemptions on selected raw materials used in feed production.
The Ministry said regular cost-of-production studies continue to inform policy interventions and sustainable producer pricing. The studies put the average cost of milk production at KSh36.2 per litre across different production systems as demand for milk continues to grow.
Sugar sector reforms
In the sugar sector, the Government is advancing institutional reforms under the Sugar Act, 2024, with measures aimed at strengthening governance and improving management of the industry.
The Kenya Sugar Board is currently being constituted, with several key institutional positions already filled.
These include the appointment of the Chairperson, a National Treasury representative, a Council of Governors nominee and a representative from the State Department of Agriculture.
However, the process of constituting grower representation on the Board has experienced delays following court injunctions and petitions challenging election procedures and the definition of sugar catchment areas.
The Ministry said the legal matters are being addressed through the courts, after which the process of electing growers’ representatives is expected to resume.
Pending the full constitution of the Kenya Sugar Board, the Ministry continues to undertake the necessary administrative functions to ensure continuity in the management of the sugar industry and implementation of the statutory framework.
The Government’s interventions in the dairy and sugar sectors are part of broader efforts to reduce agricultural production costs, expand infrastructure, improve farmer productivity and strengthen institutions supporting Kenya’s key agricultural value chains.
Author: Moureen Koech
Moureen Koech is a passionate Digital Journalist, an adept Agribusiness Writer with a keen eye for news and an impactful story-teller,whose stories provide key value to Agripreneurs and stakeholders in the Agricultural sector
