The government has given New KCC Sh1 Billion to help stabilise milk prices which have dropped drastically.
Agriculture CS Mithika Linturi said dairy farmers had complained the prices dropped to less than Sh35 per litre.
New KCC is 100 per cent owned by the government.
"We have in the recent days received concerns from the dairy farmers about the drop in prices which might affect them negatively," Linturi said.
Linturi said the minimum milk price will now be Sh45 per litre.
The CS said the government had stabilised maize prices at NCPB setting prices at Sh4,000 per bag and the same action will apply at New KCC.
"We will help farmers in all sectors so that they produce more and that's why the government has stepped in to assist the dairy farmers," Linturi said.
The CS was speaking at the NCPB depot in Eldoret where he flagged off distribution of maize dryers to counties in the region.
He was with Uasin Gishu Governor Jonathan Bii and Soy MP David Kiplagat among others.
Linturi said he would go around the county to meet with farmers from all sectors and address their concerns.
Governor Bii and Kiplagat praised the government for interventions aimed at helping farmers produce more.
"We welcome the move to support New KCC because it will benefit our dairy farmers," Kiplagat said.
On November 12, the government announced plans to establish a milk price-stabilising fund of close to Sh3 billion.
Cooperatives and Micro and Small Enterprise Cabinet Secretary Simon Chelugui said the milk fund will be implemented by the New Kenya Cooperative Creameries.
He said the funds will be used to mop up excess milk from farmers and convert the milk into long-life products to be stored in the Strategic Food Reserve.
This is among the many interventions aimed at ensuring a stable and prosperous dairy subsector.
"The government will mop up the milk, convert it into powder milk, package it and store it in the Strategic Food Reserve,” he said.
"As soon as we get to January, even the private processors will be free to buy the same dry milk at a price the regulator will provide,” said Chelugui.