Dairy Industry in Kenya 2025: Milk Production, Top Companies & Market Trends
- BeyondForest
- 13 hours ago
- 6 min read
Image of a Jersey cow at a Farm In Githunguri Bubi Dairies
0.)Overview of the Dairy Industry in Kenya
1.)Top Dairy Companies in Kenya (2025)
3.)Dairy Production Systems in Kenya
4.)Milk Production Per County in Kenya
6.)Feeding, Costs & Why Kenyan Yields Are Still Low
7.)Breeds That Dominate Kenya’s Dairy Sector
9.)The Future of Dairy in Kenya
10.)FAQ About Dairy Farming In Kenya
Overview of the Dairy Industry in Kenya
The Dairy Industry in Kenya creates 1.8 million jobs smallholder households approximately 750,000 while direct waged jobs and 500,000 indirect jobs.
Kenya’s dairy industry is one of the most developed in Africa and plays a central role in the country’s economy. The sector contributes 17% to agricultural GDP and about 3.8% to the national GDP, making it one of the largest agribusiness pillars in Kenya. Annual milk production was estimated at 5.76 billion liters in 2023, with cow milk accounting for 79% of total output.
Key Producers of Milk in Kenya are Smallholders producing approximately 80% of Kenya’s milk, typical 7.6 L/cow/day
Despite this impressive production, only 15% of milk enters the formal processing sector, while 85% is traded through informal channels such as milk bars, roadside vendors, and door-to-door supply.
Central Highlands + Rift Valley (Kiambu, Nyeri, Meru, Nyandarua, Nakuru, Uasin Gishu, Nandi) produce ~80% of milk.
The dairy industry is driven primarily by 1.8 million smallholder farmers, who produce nearly 80% of all milk. These farmers typically own 1–5 cows and achieve average yields of 7–9 litres per cow per day, though well-managed intensive systems can exceed 15–25 litres. Most milk comes from high-performing regions in the Central Highlands and Rift Valley, including Kiambu, Nyeri, Meru, Nakuru, Uasin Gishu, and Nandi, which collectively produce over 80% of national milk.
Image of Davis at his Farm In Githunguri Bubi Dairies
Key challenges facing the sector include high feed costs—representing 60–70% of production expenses—poor-quality fodder, inconsistent breeding practices, and limited access to cooling and aggregation infrastructure.
Top Dairy Companies in Kenya (2025)
Kenya’s dairy sector is anchored by several major players driving formal milk processing and branded product growth. Leading the pack is Githunguri Dairy Farmers Co‑operative Society—known for the “Fresha” brand
active in central Kenya and leveraging strong small-holder networks. Brookside Dairy Limited dominates retail with a broad product range and exports to East Africa.
New Kenya Co‑operative Creameries (New KCC) stabilises supply through its powder and UHT systems. Other noteworthy firms include Meru Dairy Processing Co. Ltd, Kinangop Dairy Farmers Cooperative Society, and Sameer Agriculture & Livestock Ltd.
Milk Production in Kenya – Updated 2024/2025 Data
Kenya’s dairy sector continues to grow steadily. In 2023, annual milk production reached an estimated 5.76 billion liters, with cow milk accounting for about 79% of that total. Formal-processor intake hit a record 908.4 million liters in 2024, up about 12% year-on-year, reflecting stronger farm supplies and improving infrastructure. According to Business Daily.
Image of Davis of Bubi Dairies touching a cow's udder in a truck bed
In Q1 2025 alone, formal processors collected 250.6 million liters, a sharp +56% jump compared to the same period in the previous year. According to USDA majority of milk—roughly 80–85%—remains in the informal channel (direct sales, vendors, cooperatives) rather than formal processing.
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Dairy Production Systems in Kenya
Zero grazing (intensive) – highest yields -15 liters/day
Semi-zero grazing – average yields -8.4 liters/day
Open grazing – lowest yields- 7.2 liters/day
Image of Friesians in a Controlled Feed System
Kenya’s dairy sector operates under three main production systems: zero-grazing, semi-zero grazing, and open grazing, each shaped by land size, feed availability, and farmer investment capacity. Zero-grazing (intensive production) is the most productive system, where cows are housed and fed manually with Napier grass, maize silage, dairy meal, and minerals.
Image of a Cow Shed at Githunguri (Bubi Dairies)
Semi-zero grazing combines controlled feeding with limited grazing time. Cows feed partly on pasture and partly on cut-and-carry forages, making it ideal for medium-scale farmers.
Open grazing is the most traditional and extensive system, common in areas with larger land parcels. Cows depend heavily on natural pastures, crop residues, and minimal supplementation. Despite its lower productivity, open grazing remains widespread due to lower costs
Milk Production Per County in Kenya
Recent data show that Kenya’s highest milk-producing counties are concentrated in the Central Highlands and Rift Valley regions. For example, Kiambu County leads all counties in milk output, averaging over 10 liters per cow per day, closely followed by Meru County and Nyeri County. Other top counties include Nakuru County and Uasin Gishu County, with strong infrastructure and cooperative systems. These counties benefit from favorable climate, established farmer cooperatives and efficient feed systems.
Formal vs Informal Dairy Market in Kenya
This sector ensures pasteurization, safety testing, and standardized packaging, supported by Kenya Dairy Board regulations and structured pricing systems.
Image of a Pickup collecting Milk from a Farm In Githunguri
Kenya’s dairy sector is dominated by the informal market, which handles 80–85% of all milk produced. In this channel, milk is sold raw through vendors, milk bars, roadside traders, and direct farm-to-consumer supply. While it offers quick cash flow for farmers, it often lacks cooling, quality control, and regulatory oversight. The formal market, which processes only 15–20% of national milk, includes licensed cooperatives, cooling plants, and major processors such as Githunguri Dairy, Brookside, and New KCC.
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Feeding, Costs & Why Kenyan Yields Are Still Low
Feeding remains the biggest constraint in Kenya’s dairy production, accounting for 60–70% of total farm costs. High prices of dairy meal, limited availability of quality fodder, and the circulation of low-grade commercial feeds force many farmers to underfeed their cows. As a result, national productivity averages only 7–9 litres per cow per day, far below the potential of 15–25 litres under proper zero-grazing systems.
Poor feed formulation, unreliable silage production, seasonal pasture shortages, and inconsistent mineral supplementation further weaken performance.
Breeds That Dominate Kenya’s Dairy Sector
Image of a Pure Holstein breed with currently on production of 31 liters.
Kenya’s dairy industry is dominated by Holstein-Friesians, which make up about 80% of the national dairy herd. These cows are valued for their high milk yields, especially under zero-grazing systems.
Other important breeds include Ayrshire, known for good balance between yield and feed efficiency, and Jersey, preferred for its high-butterfat milk and strong adaptability to varying climates. Crossbreeds such as Friesian–Sahiwal and Ayrshire crosses also play a major role, offering better disease tolerance and lower feed requirements.
Growth areas include modern zero-grazing systems, high-quality feed manufacturing, dairy genetics and artificial insemination services, and upgrading cooling and bulk-milk transport infrastructure.
Digital record-keeping and farm-management platforms offer productivity gains for thousands of small-holder farms. With the formal sector still capturing just 15–20% of total milk, there is room for new processors and mini-dairies to enter for bulk collection, pasteurization and value-added products like UHT, yoghurts, and cheese.
The Future of Dairy in Kenya
The future of Kenya’s dairy industry is shaped by rising demand, improved technologies, and the steady shift from informal to formal markets. With annual milk production projected to surpass 10 billion litres in the coming years, growth will rely on better feed systems, reliable cooling infrastructure, and wider adoption of zero-grazing and silage-making technologies. Digital tools—such as farm record-keeping apps, automated milk testers, and precision feeding—will help farmers improve productivity and reduce losses.
FAQ About Dairy Farming In Kenya
How much milk does Kenya produce annually?
Kenya produces about 5.76 billion litres of milk per year, with cow milk contributing nearly 80% of the total. Production is expected to grow as feeding, genetics, and cooling systems improve nationwide.
About 80–85% of milk is sold informally because farmers prefer quick cash and minimal regulation. However, this channel lacks cooling facilities and quality testing compared to the formal sector.
Which counties produce the most milk in Kenya?
The highest-producing counties include Kiambu, Meru, Nyeri, Nakuru, Uasin Gishu, and Nandi. These regions have strong dairy cultures, good climate, and organized cooperative structures.
What are the main challenges affecting milk yields in Kenya?
High feed costs, variable feed quality, poor breeding records, long calving intervals, and limited cooling infrastructure all contribute to low national yields of 7–9 litres per cow per day.
Which are the top dairy companies in Kenya?
Leading processors include Githunguri Dairy (Fresha), Brookside Dairy, New KCC, Meru Dairy, and Kinangop Dairy. These companies handle most of the milk processed formally.
How can farmers increase milk production?
Improving feed quality, adopting zero-grazing systems, using AI for better genetics, maintaining proper mineral supplementation, and keeping accurate farm records all significantly boost productivity.
Yes. With good breeds, proper feeding, and efficient management, dairy farming can generate strong monthly cash flow. Profitability rises further when farmers supply directly to cooperatives or processors.
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