Milk and cream market in Kenya

Earlier Report Observations

The volume of Kenya's milk and cream market expanded from 5 730 thousand tons in 2018 to 6 980 thousand tons in 2023, despite a minor stabilization in 2020 and a slight contraction in 2022. The introduction of the Dairy Industry (Registration, Licensing, Cess and Levy) Regulations in 2020, which set licensing requirements for dairy farmers and maintained a government-mandated minimum farm gate price, helped support production levels. Subsequent strong growth in 2021, when market volume reached 7 035 thousand tons, was reinforced by the Dairy Industry Regulations, 2021, which further solidified price supports and required dairy cooperatives to maintain updated member registers, improving data collection and farmer oversight.

Regulatory dynamics continued to influence the market, with the government imposing a ban on milk powder imports in 2023 to protect local dairy farmers, a measure that supported domestic market volume. This built upon the existing framework established by the Dairy Industry Act and the Food, Drugs and Chemical Substances Act, which regulate sales, packaging, and labeling, while the state-owned Kenya Cooperative Creameries (KCC) remained a major player in milk collection and processing. Proposed 2023 regulations that would have restricted farmers to supplying only one processor were suspended following public outcry, averting potential constraints on smallholder producers.

In 2024, the government advanced several initiatives aimed at long-term sector growth, including the Dairy Industry Bill 2024, which seeks to recognize milk from camels, goats, and sheep to expand production in semi-arid areas. A 10-year Dairy Industry Sustainability Roadmap was launched to increase milk output through modern technology and climate-smart practices. Milk consumption was reported to have risen by 13% between 2023 and 2024, supporting over two million small-scale farmers, although the market faced ongoing challenges such as limited processing capacity and post-harvest losses due to inadequate storage infrastructure.

Production milk and cream in Kenya

In kind, 2017-2020, K t

Kenya was among the world's leading producers of milk and cream from 2017 to 2020, ranking 24th globally by production volume.

Top producers of milk and cream, 2017-2020

World map of production of milk and cream, 2017-2020

Kenya's milk and cream production increased for the third consecutive year. In 2020, the country produced 6 324 K t, maintaining a relatively stable level compared to 2019. Over the 2017-2020 period, production grew by 18.2%, representing a compound annual growth rate of 5.7%.

Annual dynamics of production in Kenya in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Kenya's milk and cream production value rose for the third year in a row. In 2020, output was valued at 6 954 M $ US, marking a solid 10.9% increase from the previous year. Between 2017 and 2020, production value surged by 57.9%, equivalent to an annualized growth rate of 16.4%.

Annual dynamics of production in Kenya in value, 2017-2020, M $ US

Exports milk and cream from Kenya

Exports in kind, K t

Milk and cream exports from Kenya declined for the third consecutive year. In 2020, exports totaled 0.1 K t, representing a 21.0% decrease year-over-year. Over the 2017-2020 period, exports fell sharply by 95.8%, with a compound annual decline rate of 65.2%.

Annual dynamics of product's exports from Kenya in kind, 2017-2020, K t

From 2017 to 2020, Tanzania remained the primary destination for Kenya's milk and cream exports, accounting for 86.9% of total export volume. The remaining volume was distributed among other countries.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Kenya in kind, 2017-2020

Exports in value, K $ US

Kenya's milk and cream export value declined for the third year in a row. In 2020, exports reached 90 K $ US, showing a notable 12.8% drop compared to the prior year. Over the 2017-2020 period, export value decreased by 94.4%, with a compound annual decline rate of 61.7%.

Annual dynamics of product's exports from Kenya in value, 2017-2020, K $ US

Throughout 2017-2020, Tanzania was the main buyer of milk and cream from Kenya, taking 84.2% of total export value. Other trading partners held relatively modest shares.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Kenya in value, 2017-2020

Imports milk and cream to Kenya

Imports in kind, K t

After a two-year rise, Kenya's milk and cream import volumes declined. In 2020, imports reached 72.9 K t, showing an abrupt 50.7% decrease compared to 2019. Between 2017 and 2020, imports increased by 5.3%, equating to an annualized growth rate of 1.7%. The peak volume was recorded in 2019 at 147.9 K t, following the largest increase of 53.3% in 2018.

Annual dynamics of product's imports to Kenya in kind, 2017-2020, K t

From 2017 to 2020, Uganda clearly dominated as the main supplier of milk and cream to Kenya, accounting for 98.9% of total import volume.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Kenya in kind, 2017-2020

Imports in value, K $ US

After a two-year increase, Kenya's milk and cream import value declined. In 2020, imports amounted to 44 941 K $ US, representing a 54.0% year-over-year decrease. Over the 2017-2020 period, import value fell by 13.7%, with a compound annual decline rate of 4.8%. The highest value was recorded in 2019 at 97 775 K $ US, following the largest increase of 41.3% in 2018.

Annual dynamics of product's imports to Kenya in value, 2017-2020, K $ US

Over the 2017-2020 period, the import structure in value terms was dominated by a single market: Uganda, with a share of 99.1% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Kenya in value, 2017-2020