The dairy sector in Kenya serves as a vital economic lifeline for rural households, with region-based agricultural hubs like Limuru playing a key role in supply chain distribution. Smallholder farmers rely heavily on both natural fodder and commercially processed feeds to sustain daily yield targets.
However, fluctuations in weather patterns paired with fiscal policies—such as taxes levied on imported feed ingredients and animal supplements—frequently create severe cost pressures for producers, impacting nationwide supply stability.
Dairy farmers in Limuru have raised concerns over escalating animal feed prices, attributing the high costs to heavy government taxation on raw ingredients used in feed manufacturing.
The financial burden is further compounded by a severe shortage of fresh fodder due to prolonged dry weather. Without adequate rainfall to naturally boost yield, farmers are struggling to hit their daily milk production targets.
Speaking during an Annual General Meeting (AGM) held at the Limuru Dairy Processors plant, the farmers called on the government to act swiftly by waiving or reducing taxes on key feed manufacturing inputs to salvage productivity in the sector. They pointed to recent fresh milk shortages in the local market as a warning sign that the industry is under distress and requires immediate intervention before conditions worsen.
Despite these hurdles, Limuru Dairy Cooperative Society Chairman Njuguna Chege announced positive financial measures aimed at cushioning members. He revealed that the cooperative raised the payout price per liter of milk by Ksh 2, moving from Ksh 49 to Ksh 51, and commended the farmers for their steadfast loyalty.
Chairman Chege highlighted that the society disbursed Ksh 650 million directly to farmers this year alone, while maintaining a strong capital base of Ksh 1.5 billion.
To tackle high electricity costs and lower operational expenses, the cooperative has installed solar power systems across its facilities to ensure seamless operations without major disruptions.
With 150 employees and a network of 43 collection centers across Limuru, the society is actively training farmers on modern dairy production techniques. While current output stands at 40,000 liters per day, management projects a strong recovery in production volumes once the rains resume.
