Ruto orders New KCC to pay farmers Sh50 per litre of milk

Workers at the New KCC processing plant in Eldoret, Uasin Gishu County. The government will spend Sh5 billion to modernise the firm's facilities across the country. [Christopher Kipsang, Standard]

President William Ruto has directed New KCC (Kenya Co-operative Creameries) - the State-run milk processor - to increase the amount it pays farmers for raw milk to Sh50 a litre effective March 1.

This is a boon for dairy farmers and is likely to spark a price war among dairy companies as they woo farmers for milk supply.

The companies currently buy milk from farmers at about Sh35 per litre. Prices had hit a high of Sh45 a litre last year as the prolonged dry spell hit the sub-sector hard, but milk production has since gone up following the rains, resulting in a drop in prices that firms pay to farmers. Retail prices have, however, remained up, with a litre going for Sh120 for most brands currently.