By the 254.ke Newsroom. Updated October 23, 2026.
President William Ruto has announced that Kenyan dairy farmers will be paid Ksh65 per litre of milk from this month, plus a Ksh2 per litre bonus paid quarterly. He made the announcement at the Mashujaa Day celebrations in Eldoret on October 20, 2026. The details of who will pay, and how, have not yet been published.
What did Ruto say about the new milk price?
Speaking at Kipchoge Keino Stadium, Ruto said farmers would earn Ksh65 per litre starting in October. He said the price paid to producers had already risen from Ksh35 to Ksh60 per litre, and described the new rate as a further increase. Kenyans.co.ke and People Daily both reported the same figures from the speech.
The bonus is an extra Ksh2 per litre. Reports differ on timing: Kenyans.co.ke and People Daily describe it as paid every quarter, while Streamline Feed quotes Ruto as saying it accrues monthly and is payable quarterly. Streamline adds that the bonus is on top of the Ksh65 and should not be added into a single Ksh67 headline price.
The numbers at a glance
| Item | Figure |
|---|---|
| Announced farmgate price | Ksh65 per litre, from October 2026 |
| Previous price cited by Ruto | Ksh60 per litre (up from Ksh35) |
| Bonus | Ksh2 per litre, payable quarterly |
| Arrears pledged | About Ksh400 million owed to dairy farmers, by end of October |
| Milk production, 2025 (KNBS) | About 5.5 million tonnes, up 3.5 per cent |
| Processor intake, 2025 (KNBS) | Above 1 billion litres, up 11.5 per cent from 909 million litres in 2024 |
What has not been explained?
Streamline Feed notes that the speech did not specify which processors or buyers will pay the rate, which deliveries qualify, how quality grading or deductions will work, or how the bonus will be calculated. No payment dates were given. The outlet also says the Ksh65 figure is an announced rate rather than a verified national minimum, and that it did not yet appear on farmers’ statements when it published on October 22.
None of the three reports we reviewed carried a response from processors. Farmers’ actual payslips from co-operatives and processors will show whether the rate is being applied.
Is milk production really rising?
Ruto said national milk production had grown by one billion litres. That does not match the Kenya National Bureau of Statistics (KNBS) Economic Survey 2026, which Kenyans.co.ke and Streamline both cite. The survey puts fresh milk production at about 5.5 million tonnes in 2025, a 3.5 per cent rise. Marketed milk, which processors took in, passed 1 billion litres for the first time, up 11.5 per cent.
More recent data points the other way. Streamline cites KNBS Leading Economic Indicators for August 2026, based on Kenya Dairy Board figures, showing formal-sector intake of 84.44 million litres in June, 81.32 million in July and 77.13 million in August. August was about 8.7 per cent below June and 4.9 per cent below August 2025.
Why is milk expensive and scarce right now?
A persistent shortage has pushed retail prices up and cut supply to households and hotels, according to the reports. Farmers blame high feed costs and falling production, and some sell directly to consumers because they earn more than processors pay. A higher farmgate price is meant to pull more milk back into the formal market.
The government has also been talking about reshaping New KCC. Kenyans.co.ke says Ruto outlined a plan to let the creamery’s eight factories operate independently, each supplying its own region. Streamline says that plan was set out at a Kapsabet event about two days before the Eldoret speech, as reported by the Daily Nation, and describes it as farmer-owned factories. The two accounts differ on ownership, so the final structure is unclear.
What this means for farmers
- Check the next co-operative or processor statement for the per-litre rate applied to October deliveries.
- Ask your society how the Ksh2 bonus will be calculated and when the first quarterly payment falls.
- Keep delivery records, since eligibility rules have not been published.
- The Ksh400 million arrears pledge has an end-of-October target; watch for payments by then.
Related reading on 254.ke: Mashujaa Day 2026 in Eldoret, the maize shortage and unga prices, and KTDA tea bonus rates by factory. For official dairy data, see the Kenya National Bureau of Statistics.
FAQ
How much will Kenyan dairy farmers be paid per litre?
Ruto announced Ksh65 per litre starting October 2026, with an additional Ksh2 per litre bonus paid quarterly.
When does the Ksh65 milk price start?
Reports say “this month”, meaning October 2026. No specific day has been given.
Who will pay the Ksh65?
That has not been stated. The speech did not name buyers or processors, so farmers should confirm with their co-operative or processor.
Is Ksh65 a legal minimum price?
Not so far. Streamline Feed describes it as an announced rate rather than a verified national minimum.
