State reduces milk it buys from farmers

Senators have summoned Agriculture CS Mutahi Kagwe as they launch an inquiry into claims that the new KCC has drastically reduced volume of milk it collects from farmers.

The lawmakers warned of a looming crisis in the sector, saying the alleged abrupt changes threaten to cause massive financial losses, particularly among small-scale dairy farmers.

The situation is compounded by increased competition from neighbouring countries, especially Uganda, whose milk exports reportedly continue to depress local prices.

According to the senators, the hardest-hit farmers are from Mt Kenya, especially Kirinyaga county.

Raising the matter in the House, Kirinyaga Senator James Murango called for immediate intervention to protect farmers who now face unsustainable losses.

He said the Kenya Creameries Corporation had cut its daily milk intake from 45,000 litres to just 25,000.

“The committee should establish the reasons behind the abrupt reduction in milk collection by New KCC,” Murango told the Senate Agriculture Committee, which has been tasked with investigating the issue.

He said Meru Central Dairy Union—another major buyer that sources milk through local Saccos—had issued a one-day notice to farmers, slashing its intake to 15,000 litres per day.

“This abrupt action has created a surplus of 35,000 litres daily, overwhelming storage facilities and resulting in direct losses estimated at Sh2 million per day,” he said.

The senator questioned why suppliers outside Meru county, especially those in Kirinyaga, who remained loyal during dry seasons, are being penalised, while milk collection continues unhindered in other regions.

Murango urged the State Department for Livestock to implement immediate and long-term measures, including expanding cooling infrastructure and securing timely market access to reduce post-harvest losses.

The Senate is also seeking to identify policy interventions that can shield small-scale dairy cooperatives from sudden disruptions in the supply chain, ensuring their long-term stability.

In addition, senators want clarity on the government's strategy for regulating milk and dairy imports from Uganda, calling for protections against unfair competition that threatens local producers and processors.

Murang’a Senator Joe Nyutu criticised new KCC’s abrupt move, emphasising its devastating impact on farmers who depend on dairy income.

“You can only imagine what is happening to these farmers and what they are doing with the excess supply of milk,” he said. “It is also very important that we address the issue of milk imports from Uganda. We should not expose our farmers to unfair competition.”

Elgeyo Marakwet Senator William Kisang reminded the House of past government promises to support dairy farmers.

“The Kenya Kwanza government campaigned on a platform of improving milk prices to Sh53 per litre. It is sad that the new KCC and Meru Sacco have slashed milk intake from 75,000 to 25,000 litres. Milk is perishable—it’s not something you can store indefinitely,” he said.

Kisang called on the Senate to summon Agriculture Cabinet Secretary Mutahi Kagwe and the CEO of New KCC for an explanation.

“Our farmers are suffering. We encourage them to rear high-yielding dairy cows that can produce up to 40 litres per day and yet we’re not buying their milk. That’s not right,” he said. “The CS must explain why, in the face of local shortages, we are still importing milk from Uganda.”

New KCC is yet to respond to the claims, and is expected to give its position when the CS appears before the lawmakers.