Kenya nearly doubles dairy export value, but domestic milk prices keep rising

The value of Kenya’s dairy exports has increased from Ksh4.9 bln to Ksh9.4 bln, a rise of about 92%. At the same time, milk production increased from 4.6 bln liters to 5.2 bln liters, according to government figures.

Conditions for producers have also improved, with the guaranteed minimum milk price raised from Ksh37 to Ksh50 per liter. Separate data from the Kenya National Bureau of Statistics show that the country produced 5.5 bln liters of milk in 2025, up 3.5% year on year.

However, only about 1 bln liters were marketed through formal channels last year, although this figure increased by 11.5%. The large gap between total production and formally marketed milk highlights the potential for further investment in collection, cooling, processing and higher-value dairy products.

Despite higher output, milk prices for Kenyan consumers continue to rise. In September, prices for fresh packaged milk increased by 6% month on month, while unpackaged fresh milk rose by 5.8%. The average price of 500 ml of UHT milk increased from Ksh57.08 to Ksh61.64.

Dry weather is adding further pressure. Formal milk deliveries to processors fell by 3.7% month on month in July to 81.3 mln liters as pasture conditions worsened and feed costs increased. Despite stronger production and export earnings, improving supply-chain efficiency and keeping dairy products affordable for domestic consumers remain key challenges for the sector.

Tags: export, prices, Milk, Kenya, dairy products