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Kenya shifts To Quality-Based Payments in dairy

Kenya’s dairy sector has long been celebrated as one of the largest in Africa, contributing nearly four per cent to the country’s Gross Domestic Product (GDP) and supporting over 2 million livelihoods. Yet, despite its size, the sector has historically focused on production volumes rather than the quality of milk delivered.

That paradigm is now shifting, ushering in a new era where value, not volume, defines success. At the heart of this transformation is the Quality-Based Payment (QBP) system.

Livestock Development Principal Secretary Jonathan Mueke, speaking during a farmers’ training session in Meru and Tharaka Nithi Counties, explained that unlike traditional frameworks that rewarded farmers solely on litres delivered, QBP ties earnings to milk quality.

“These milestones were not ordinary achievements. They reflected the dairy sector’s strategic shift from prioritising volume to emphasising value, where quality forms the foundation of farmer incomes and market competitiveness,” said Mueke.

Under the QBP system, farmers’ milk will now be assessed based on butterfat and protein content, hygiene and safety standards, absence of adulteration, and low bacterial counts. The model incentivises better feeding practices, investment in superior breeds, and improved herd management.

“At the moment, two of our milk processors in the country have adopted the QBP system, while 12 others, including Meru, are ready for adoption. The two are already enjoying prices above Sh65 per litre due to the quality of their milk,” Mueke added.

The system’s ripple effects include higher incomes for farmers, reduced losses from rejected milk, and stronger motivation to adopt modern practices. Cooperatives benefit from improved intake quality, reduced spoilage, and enhanced market positioning, while processors gain higher yields for premium products like yoghurt, butter, ghee, cheese, and ice cream, boosting competitiveness both locally and internationally.

During the event, the Meru Central Dairy Cooperative Union received ISO Certification from the Kenya Bureau of Standards (KEBS), underscoring the sector’s commitment to global standards.

Kenya Dairy Board Managing Director William Maritim highlighted the importance of compliance. “The certificate is very expensive, and you must now change your mind on what you normally do to abide by it and conform to its standards. Deliberate efforts should be put on livestock movement control to avoid foot and mouth disease, or else our dairy will collapse,” he warned.

Meru Dairy Cooperative Union Chief Executive Officer Kenneth Gitonga urged managers and chairpersons to uphold milk standards. “It is the policy of our union that we don’t want to waste time in court cases for failure of compliance. We comply quickly, and then we go to do business because all we want is money,” he said.

Mueke further added that under the Bottom-Up Economic Transformation Agenda (BETA), the government aims to double milk production, expand exports, increase value addition, and create sustainable jobs.

“Achieving these goals hinges on prioritising quality. The future of Kenya’s dairy sector will be defined not only by production volumes but by the quality standards achieved across the value chain,” he said, expressing confidence that farmers, cooperatives, and processors embracing reforms will transform the industry into a modern, export-ready powerhouse.

by Dickson Mwiti

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