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Kenya faces dairy shortage and rising prices amid dry spell and feed costs

Supermarkets limit purchases and prices climb as officials weigh duty-free feed and regional milk imports to ease constraints.

The short version

  • A milk shortage in Kenya has emptied supermarket shelves, prompted retailer rationing, and raised fresh milk prices from 70 to 80 shillings per litre.
  • The government points to drought, while consumer groups also highlight high feed costs and inadequate conversion of prior surpluses into powder reserves.
  • Authorities are considering duty-free imports of yellow maize for cattle feed, establishing a surplus preservation fund, and temporarily importing milk from neighboring nations.

Key facts

  • Formal milk deliveries to processors declined by 3.7% from 84.4 million litres in June to 81.3 million litres in July, with preliminary indications showing further drops in August, according to the Kenya Dairy Board.[BBC News]
  • Retail prices for fresh milk increased from 70 to 80 Kenyan shillings per litre amid the supply constraints.[BBC News]
  • The Consumer Federation of Kenya stated that animal feed costs have surged by 45% and criticized state processor New KCC and the regulator for failing to build sufficient milk powder buffers during last year's surplus.[BBC News]
  • The Ministry of Agriculture met with dairy processors and is considering duty-free yellow maize imports for feed, a milk preservation fund, and temporary milk imports from neighboring countries.[BBC News]

What remains uncertain

  • The exact scale of August delivery declines remains preliminary, and the timeline for implementing proposed emergency feed imports or regional dairy purchases has not been finalized.[BBC News]

Sources