President William Ruto told a church congregation in Kapsabet that New Kenya Cooperative Creameries (New KCC) will run each of its eight processing plants as independent units, a shift intended to cut milk distribution costs and lower retail prices.

Under the current system, milk from all regions is first sent to the Nairobi plant before being redistributed, a practice that adds distance and expense to the supply chain.

Ruto said each factory will now serve the markets surrounding it directly, eliminating the need for long‑haul transport from a single hub.

The government expects the new model to reduce transport expenses and improve delivery efficiency, drawing on the Kenya Tea Development Agency’s decentralised production approach while keeping centralised procurement and marketing functions.

In addition to restructuring, the president pledged that the state will settle roughly KSh400 million owed to dairy farmers by the end of October, helping them cover production costs and sustain milk output.

The dairy sector remains under pressure from prolonged dry spells, deteriorating pasture quality and high feed prices, which have driven up livestock costs and contributed to supply gaps and higher consumer prices.

Ruto also directed the State Department for Livestock Development to explore alternative milk sources such as improved camel and water‑buffalo breeds, part of a broader effort to diversify production and reduce climate vulnerability.

The department has already invested in cold‑chain infrastructure, procuring milk coolers worth KSh1.4 billion during the 2024/2025 fiscal year, according to Agriculture and Fisheries Cabinet Secretary Mutahi Kagwe’s Senate testimony.