The government is considering importing powdered milk to ease a biting shortage that has pushed up prices and strained supplies to processors across the country.
Agriculture Cabinet Secretary Mutahi Kagwe said the proposed imports are among measures being considered to stabilise the dairy market, which has been hit by prolonged dry conditions, high animal-feed costs and reduced deliveries to processors.
Speaking during the official opening of the Mombasa International Show, Kagwe, however, cautioned against large-scale imports, warning that excess stocks could flood the market once rains return and local milk production recovers.
“We are considering the importation of powdered milk to cushion the market, but we must be careful not to create a glut when the rains come back and production improves,” Kagwe said.
Kenya produces about 5.3 billion litres of milk annually and is one of Africa’s leading dairy processors. However, prolonged drought in key dairy-producing regions has depleted pastures and increased the cost of animal feeds, cutting milk output.
Kagwe dismissed claims that the shortage had been deliberately created, saying the supply squeeze was largely driven by weather conditions and disruptions in the dairy value chain.
“This shortage is not man-made. The main challenge has been the drought, which has affected pastures and animal feeds,” he said.
He also said some milk that would ordinarily reach processors through cooperatives was being diverted to brokers offering farmers higher prices, further tightening supplies to the formal market.
The government is now moving to allow duty-free imports of yellow maize, a major ingredient in animal feeds, in an effort to lower production costs and support improved milk yields.
Kagwe said the measure had been approved by the National Security Council as part of efforts to address the feed shortage and stabilise dairy production.
Official data shows the pressure on processors has already begun to show.
According to the Kenya National Bureau of Statistics, formal-sector milk intake fell by 0.6 per cent in the first half of 2026 to 513.32 million litres, from 516.34 million litres during the corresponding period.
The decline has reduced the amount of raw milk available to processors at a time when drought has already weakened production in several dairy-growing areas.
Lower intake has contributed to intermittent shortages of processed milk on supermarket shelves and higher retail prices as processors compete for reduced supplies.
The squeeze comes amid broader food-price pressures, adding to household budgets already strained by the rising cost of basic commodities.
The government is banking on cheaper animal feeds, improved rainfall and targeted imports to ease the shortage while avoiding measures that could hurt local farmers once domestic production rebounds.
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