Agriculture CS Mutahi Kagwe speaking when he appeared before the Senate on September 16, 2026 / ScreengrabAgriculture Cabinet Secretary Mutahi Kagwe has attributed Kenya’s current milk shortage to drought and consumer hoarding, saying milk processing has declined by about 5.18 per cent.
Speaking in the Senate, Kagwe said the reduction was not as significant as it may appear, noting that processing levels were only about five per cent below the usual production.
Kagwe said drought had affected milk availability, while consumer hoarding had further contributed to the situation.
He said some consumers were buying more milk than usual after being restricted to two or three packets in supermarkets.
“What I would like to assure the public is that there is a slight shortage of milk, but it is not exaggerated. It's only about 5 per cent less than the usual production,” he said.
“People who would normally have one or two packets of milk in their houses have now got six or so because of the fear that there is not going to be milk, particularly when you are concerned with children and their uji and so on.”
He also said some farmers were selling milk directly to consumers rather than taking it to processors because some cooperatives and processors had not adjusted their payments to reflect higher market prices.
Kagwe urged dairy cooperatives to pay farmers on time and ensure they benefit from the higher prices currently being offered in the market.
“The consumer market is paying a higher price, and that price premium should also be passed on to the farmer. And that is the only way that we can make sure that we have enough,” he said.
CS Kagwe said the shortage was expected to be temporary, with the onset of rains expected to improve milk production.
On fodder production, the CS said Kenya needed to increase large-scale extensive farming, while also involving small-scale farmers.
He said research was being undertaken to develop fodder varieties that are resistant to diseases and can grow in semi-arid areas.
“And that is the future of agriculture. The areas that are considered arid and semi-arid are the future of agriculture,” he said.
On the price paid to farmers per litre of milk, Kagwe said producer prices were largely determined by market forces of supply and demand.
He said the government had put in place legal safeguards to protect farmers from low and unsustainable prices, including periodically reviewing and gazetting minimum producer prices for raw milk.
Kagwe said a Kenya Dairy Board study established that the average cost of producing one litre of milk was Sh39.50 for zero grazers, Sh37.30 for semi-zero grazers and Sh24.50 for open grazers, with an average of Sh36.20 across the production systems.
He said average profits across the production systems stood at about Sh9.90 per litre.
Kagwe added that market forces had pushed up milk prices since the Dairy Industry Regulations were gazetted in 2021, reducing the need for further government intervention.
He said prices paid to farmers had risen to between Sh55 and Sh60 per litre among some companies amid the current shortage.
“The long and short of it is that while the government itself has placed minimum prices, the current prices in the market are above the minimum that the government has set,” Kagwe said.
He added that lowering the cost of production would make milk production more profitable for farmers.
