Kenya’s dairy sector is currently facing supply constraints, largely due to prolonged dry conditions and changing weather patterns. Despite producing over 5.5 billion litres of milk in 2025, strong annual production figures do not guarantee a stable milk supply throughout the year.
Drought has reduced the availability of pasture and water, increased the cost of feed and reduced milk production across Kenya and the wider region. These pressures are being felt by farmers, processors and consumers alike.
While immediate measures are necessary to stabilise the supply, we must also ask ourselves: how can we build a dairy industry that is better prepared for the next climatic shock?
QBP means paying farmers according to the quantity and quality of milk delivered. Currently, most Kenyan farmers are paid primarily based on the number of litres supplied. However, not every litre has the same value. Milk with a higher butterfat and protein content produces more butter, cheese, yoghurt and other dairy products. Clean, properly handled and rapidly cooled milk also lasts longer and is safer for consumers.
Under QBP, a digital milk analyser measures the composition of milk at the collection point. The results are recorded using simple software, and farmers who produce better milk receive a higher price. The principle is straightforward: better milk should earn a better return. QBP is designed to reward excellence, not punish farmers.
In many major dairy-producing countries, including India and South Africa, milk composition and quality are routinely considered when determining farmer payments. India is a particularly relevant example of this because, like Kenya, its dairy industry is largely based on smallholder farmers.
India’s milk production increased from around 20 billion litres in the 1960s to 248.3 billion litres in 2025 — a tenfold increase. The country now produces around a quarter of the world’s milk.
This transformation, commonly known as the White Revolution, was achieved through several complementary measures: strong farmer cooperatives, quality-based payments, investment in milk collection and cooling, improved animal health and genetics, and reliable feeding. At Indian cooperative collection centres, every farmer’s delivery, whether large or as little as half a litre, is tested for butterfat and solids not fat, including protein. Payment reflects the composition of the milk rather than volume alone.
Kenya has already begun this journey. Several processors currently pay for the quality of milk delivered in cooperative tankers in bulk.
Albert Miare uses a milking machine on his farm in Kasarani, Nairobi. FILE PHOTO | NATION MEDIA GROUP
The next step is to extend this benefit to individual farmers, whose daily work determines the quality of milk in every cooperative tank. While a cooperative may receive a premium for high-quality bulk deliveries, the farmers who contribute the best milk should also be rewarded with higher prices.
This is important for climate resilience. Butterfat is cash. When farmers earn more from higher-quality milk, they can build the financial capacity to conserve fodder, harvest water, insure their animals, access veterinary services, and invest in more productive, climate-resilient genetics. While QBP cannot prevent a drought or replace milk lost during a severe dry period, it can improve farm margins and help farmers prepare for and recover from climatic shocks.
Kenya’s transition to QBP is voluntary and industry-led. The government is supporting dairy cooperatives by subsidising digital milk analysers, payment software, and milk-cooling equipment. These investments will demonstrate what is possible, build confidence, and reduce the initial cost of adoption.
However, government subsidies alone cannot finance a nationwide transition. Large-scale commercial investment will be required.
We have therefore mobilised local banks and Saccos to develop financing products tailored to the needs of cooperatives, processors and other milk buyers, enabling them to acquire milk quality analysers, cooling equipment, digital systems and related infrastructure.
In addition, QBP must be supported by investment in fodder reserves, water, animal health, genetics, extension services and strong cooperative management. Together, these measures will help farmers to produce more valuable milk, enable processors to manufacture more efficiently, and assure consumers of the safety and nutritional value of dairy products.
Kenya has built one of Africa’s strongest dairy industries. Our next transformation must move the sector from rewarding volume alone to rewarding value. Every litre counts — but every good litre will count for more.
