Govt Rolls Out KSh 1.45B Milk Coolers to Boost Dairy Sector

In Summary

• Kenya launches KSh 1.45 billion project to install 230 bulk milk coolers across 40 counties.
• Initiative aims to cut 6% annual milk losses, valued at KSh 7.9 billion.
• CS Mutahi Kagwe distributes eight coolers in Nyeri under Livestock Value Chain Support Project.
• Program to boost milk production to 10 billion litres by 2027, create 500,000 jobs.
• Coolers enhance storage, quality, and market access for smallholder farmers.
• Project supports Kenya’s goal to export 1 billion litres of milk annually.

The Kenyan government has launched a KSh 1.45 billion initiative to distribute and install 230 bulk milk coolers across 40 counties, aiming to transform the dairy sector by reducing post-harvest losses and boosting production. Agriculture and Livestock Development Cabinet Secretary Mutahi Kagwe led the distribution of eight coolers to dairy cooperatives in Nyeri on July 24, 2025, under the Livestock Value Chain Support Project, following a flag-off by President William Ruto in Meru last month with 15 coolers.

The dairy industry, contributing 4% to Kenya’s GDP and supporting over 2 million livelihoods, produced 5.3 billion litres of milk in 2024, with 80% from smallholder farmers. However, 175 million litres, worth KSh 7.9 billion, are lost annually due to poor storage. “These coolers will increase national chilling capacity by 475,000 litres daily, improving milk quality and farmer incomes,” Kagwe said in Nyeri.

The project targets 427 verified sites, with 285 ready for installation, and includes coolers ranging from 1,000 to 10,000 litres. Principal Secretary Jonathan Mueke, who handed over a 5,000-litre cooler to Ndarugu Dairy Cooperative in Kiambu, noted, “This initiative enhances milk aggregation and market access, aligning with our food security goals.”

Farmers like Mary Wanjiku from Nakuru praised the program. “With coolers, we can store milk longer and negotiate better prices with processors like Brookside,” she said. However, some farmers raised concerns about maintenance costs, urging government support for sustainable operations.

The initiative builds on Phase I (2017–2022) of the Dairy Value Chain Support Programme, which distributed 350 coolers across 38 counties, cutting losses by 15%. Phase II aims to double milk production to 10 billion litres by 2027, create 500,000 jobs, and export 1 billion litres annually. The Ministry is also addressing challenges like inadequate breeding stocks, feed costs, and climate change impacts through vaccination campaigns and fodder production investments.

Further distributions are planned through 2025, with the government collaborating with county governments and processors to ensure all milk is collected and processed for local and international markets.