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Transforming Kenya’s Informal Dairy Sector: A Step Towards Economic Empowerment and Healthier Communities

sage whitman by sage whitman
January 30, 2025
in Economy
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Transforming Kenya’s Informal Dairy Sector: A Step Towards Economic Empowerment and Healthier Communities
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Kenya’s dairy industry is set to undergo a transformative phase with the launch of the MoreMilk 2 initiative, spearheaded by the Kenya Dairy Board (KDB) and the International Livestock Research Institute (ILRI). This groundbreaking project aligns seamlessly with the government’s Bottom-Up Economic Transformation Agenda (BETA), emphasizing the critical role of dairy as a priority value chain for development. By targeting small-scale informal dairy businesses, the initiative promises to deliver wide-ranging benefits to farmers, vendors, and consumers alike, while contributing significantly to the nation’s economic and health outcomes.

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Supporting Farmers and Vendors

The informal dairy sector, which accounts for nearly 75% of Kenya’s milk supply, is a vital pillar of the country’s economy and nutrition. Farmers and vendors operating in this sector face numerous challenges, including poor milk handling practices, lack of access to regulated markets, and limited capacity to meet safety and quality standards. MoreMilk 2 aims to address these issues head-on by enhancing milk safety, improving regulatory compliance, and empowering vendors.

Through capacity building and certification schemes, informal dairy vendors will be equipped with the skills and resources needed to improve milk handling practices, ensuring that the milk reaching consumers is safe and of high quality. These measures will not only protect public health but also boost consumer confidence in local dairy products. By supporting the gradual transition of informal businesses into certified enterprises, the initiative will reduce barriers to market entry and foster greater inclusion in the formal economy. Furthermore, by promoting gender equity and fostering collaboration between men and women, MoreMilk 2 will enable informal vendors to thrive in a more structured and supportive environment. This emphasis on inclusivity ensures that all stakeholders, regardless of gender, have an opportunity to benefit from the program.

Benefits to Farmers

For small-scale dairy farmers, the initiative opens up new opportunities for income generation and market access. By improving the safety and quality of their milk, farmers can tap into regulated markets, which offer better prices and stable demand. This shift from informal to formal markets provides a pathway for farmers to secure more predictable incomes and expand their customer base. Moreover, the initiative’s focus on high-value dairy products such as cheese, butter, and ghee create additional revenue streams, reducing reliance on traditional fresh milk sales. These products not only cater to an expanding domestic market but also hold potential for export, enhancing the sector’s profitability.

The project also seeks to address inefficiencies in the value chain by introducing modern technologies and best practices. These advancements will help farmers enhance productivity, minimize losses, and meet the growing demand for quality dairy products. This diversification aligns with the government’s vision of increasing per capita milk consumption from 86.1 liters to 130 liters annually, boosting demand and encouraging local production. As farmers gain access to training, resources, and market opportunities, they are better positioned to contribute to national food security while improving their livelihoods and building resilience against economic uncertainties.

Alignment with Kenya’s Economic Transformation Agenda

MoreMilk 2 is deeply rooted in the principles of the Bottom-Up Economic Transformation Agenda (BETA), which prioritizes inclusive growth and the empowerment of grassroots communities. The initiative directly supports the government’s objective of increasing milk sales through regulated markets from less than 20% to 50% by:

  1. Promoting Food Security: By ensuring a steady supply of safe, affordable milk, the project enhances nutrition security for millions of Kenyan households.
  2. Driving Economic Growth: The formalization of the dairy sector will generate jobs, increase incomes, and expand public revenue streams, particularly in rural areas.
  3. Scalability: Targeting counties such as Nakuru, Nyandarua, and Uasin Gishu, the project will serve as a model for nationwide implementation, demonstrating the feasibility of scaling up its benefits.

A Collaborative Effort

The success of MoreMilk 2 is underpinned by a robust partnership between KDB, ILRI, and key international donors, including the Bill & Melinda Gates Foundation and the UK Foreign, Commonwealth, and Development Office (FCDO). This collaboration combines cutting-edge research with regulatory expertise to build a professionalized and sustainable dairy industry. As ILRI Director General Appolinaire Djikeng aptly noted, “Together, we are building a professionalized, sustainable industry that benefits millions.”

Consumer Empowerment

A crucial aspect of the initiative is the empowerment of consumers to demand safer, high-quality milk. By creating awareness and promoting trusted and compliant businesses, the project fosters consumer trust and encourages behavioral change. This, in turn, drives demand for regulated dairy products, further incentivizing vendors to adopt best practices.

Building on Past Success

The MoreMilk 2 initiative builds on the achievements of its predecessor, which demonstrated that with the right support, informal dairy vendors can significantly improve their practices. By focusing on sound research and sustainable models, the project ensures that its impact extends beyond immediate stakeholders to benefit entire communities.

Kenya’s informal dairy sector has long been a cornerstone of the nation’s economy and nutrition. With the launch of MoreMilk 2, the government has taken a bold step towards formalizing and professionalizing this critical sector. By addressing existing challenges and unlocking new opportunities, the initiative not only uplifts small-scale farmers and vendors but also aligns with the broader goals of economic transformation and public health improvement.

In the words of Dr. Joshua Chepchieng, Secretary Administration at the State Department of Livestock Development, “Our long-term vision is to have a formalized dairy sector in Kenya that provides safe milk and contributes to nutrition security, health, and economic growth. This initiative is an essential step towards achieving this vision.”

Indeed, the MoreMilk 2 initiative is a testament to the government’s commitment to fostering inclusive development and creating a brighter future for all Kenyans. By empowering stakeholders across the dairy value chain, it lays the foundation for a healthier, more prosperous, and more equitable society.

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