The government through the ministry of agriculture has ordered the New KCC to pay dairy farmers Sh33 per litre up from Sh25, representing an increase of Sh8 per litre of milk the producers shall now deliver to the cooperative.

This follows President Uhuru Kenyatta’s economic directives to revamp the country’s dairy sector when he also directed the Treasury to release Sh500 million for purchasing excess milk from farmers and another Sh575 million for constructing new milk processing plants in Nyeri and Nyahururu.

Announcing the effective of the president’s directive, the new Agriculture CS, Peter Munya said that moving forward the government will better milk prices upon completion of processing plants.

“This is to help mop up excess milk and process it into powder before putting it into strategic food reserve to help stabilizes milk prices in the market for consumers and also improve the earnings of farmers,” said the CS.

A 16% vat tax has equally been imposed on all milk products from outside the East African community.