The government has allocated Sh900 million to the Kenya Cooperative Creameries (KCC), Deputy President Rigathi Gachagua has said.
Gachagua who was speaking in Trans Nzoia on Sunday said the move seeks to ensure to prices of milk in the country are stabilised.
The funds are allocated to KCC to buy the milk to stop prices from dropping due to a surplus in production.
As a result, milk prices are expected to rise to Sh50 per litre up from Sh45 beginning March 1, 2024.
The Deputy President said they seek to increase the prices to over Sh60 per litre in the coming months.
“As a government, we released Sh900 million to stabilise the prices in the milk sector after a glut following the heavy rains," Gachagua said.
"The prices at KCC will be raised from Sh45 per litre to Sh50 from March 1 and up to Sh60 in the coming months,” the DP noted.
The DP asked dairy farmers to supply milk to the New KCC to earn more.
The DP further called on farmers in Trans Nzoia to increase acreage under maize.
He noted that the government had released adequate subsidized fertilizer which is being sold at Sh2,500 per 50kg bag.
“Trans Nzoia County is important in our country’s food security. The subsidized fertilizer is readily available here," Gachagua said.
"We thank Governor George Natembeya for ensuring the last-mile distribution of the fertilizer,” he said.
He discouraged the farmers from selling all their harvests and asked them to keep some for domestic consumption.
This comes barely two weeks after President William Ruto acknowledged that the agriculture sector has been faced with a myriad of challenges.
Ruto reiterated the government's commitment to streamline the sector.
For instance, he noted that the issues which were threatening the operations at KCC had been resolved, with the farmers expected to get better payment rates beginning March 1.
He said the farmers will now be getting Sh50 per litre of milk they supply to KCC.
"Farmers who are important are paid Sh30 per litre, consumers pay Sh120 for the same in shops; this mathematics is not making sense," Ruto said.
