President William Ruto announced that the farmgate price for milk will be increased to Sh65 per litre, a move aimed at improving returns for dairy producers.

The announcement was made in Kapsabet, Nandi County, on 18 October 2026 during the launch of local development projects.

Ruto also pledged to clear about Sh400 million owed to dairy farmers by the end of October, addressing long‑standing payment delays.

Under the new model, each of New KCC’s eight processing plants will operate independently, supplying milk directly to nearby markets rather than routing it through Nairobi.

The President said the factories will be owned and managed by farmers in their respective jurisdictions, with capital injections to sustain operations.

Ruto linked the dairy reforms to successful decentralisation in the tea, coffee and sugar sectors, noting that similar structures have boosted farmer earnings.

The government has already injected Sh8 billion into New KCC over the past three years to stabilise the processor before the restructuring.

The reforms come amid a milk shortage in major towns, where retailers have rationed sales and retail prices have risen roughly 6 percent due to drought, poor pasture and high feed costs.

Ruto directed the State Department for Livestock to explore improved camel and water‑buffalo breeds to augment milk supply.

In addition to dairy reforms, the President announced a Sh21 billion road‑maintenance package, including a dual‑carriageway upgrade of the Eldoret‑Kapsabet‑Chavakali road, to facilitate transport of goods.