The Kenya dairy import levy 2026 of 10 percent aims to shield local farmers from unfair competition. The move follows a trade dispute with Uganda over milk imports.

Kenya Dairy Import Levy 2026

Kenya has imposed a 10 percent import levy on dairy products. The move aims to cushion local dairy farmers from unfair competition caused by unregulated imports. The levy is expected to make imported dairy products more expensive, giving local farmers a competitive edge.

Earlier this year, a mini trade war erupted between Kenya and Uganda after milk imports from the latter were impounded at the border. This led to a temporary ban on the importation of milk products from Uganda. The obstruction of delivery trucks carrying Pearl Dairy products cost the company $0.6 million, according to the company’s report.

The Kenya dairy import levy 2026 is part of broader efforts to regulate the sector. According to dairy industry regulations published by the Ministry of Agriculture, milk processors in the country will no longer set and adjust farm gate prices at will. Previously, processors would change prices based on supply and demand, applying increases when there was a shortage and decreases when there was a glut.

Last week, Brookside Dairy increased milk prices by one shilling per litre to KSh36 from KSh35 to cushion farmers from the effects of the COVID-19 pandemic. The small increase was welcomed by farmers who have been struggling with low prices.

Data from the Ministry of Agriculture reveals that the country imported 70 million litres and 10 million kilograms of powdered milk in 2018. An additional 15 million litres of liquid milk and 1.5 million kilograms of powdered milk were imported in January 2019 alone. These imports have hurt local farmers by flooding the market with cheap products.

The Kenya dairy import levy 2026 is expected to reduce the volume of imports and encourage local production. The government has also been working with industry stakeholders to improve the competitiveness of local dairy products.

Industry growth projections

The dairy industry in Kenya is projected to grow by 53 percent by the year 2028. This growth is expected to come through interventions by the Nourishing Prosperity Alliance: Forage for Animal Growth in East Africa (NPA-Forage). The alliance is an innovative coalition of private agricultural firms, research institutions and non-governmental organisations. It aims to increase the productivity and incomes of small-scale dairy farmers in Ethiopia and Kenya.

According to statistics from the coalition, the potential 53 percent growth in the dairy sub-sector would translate to about half a million small-scale farmers producing 3.4 billion litres of milk from a total herd of 2 million animals. The commercial value of this growth, based on the initial success of a pilot that took place between 2020 and 2023, is about KSh 156 billion in total revenue for small-scale dairy farmers.

Ian Mutua Muthama, NPA-Forage Country Lead Technical Manager, highlighted that poor animal nutrition is a key factor in low milk productivity. He explained that by establishing a market for nutritious and cost-effective forage, the dairy industry is expected to grow by 16 percent this year, 26 percent next year, and up to 53 percent by 2028.

The Kenya dairy import levy 2026 is a significant step towards protecting local farmers. Combined with the growth projections from the NPA-Forage interventions, the future of Kenya’s dairy industry looks promising. The government’s commitment to regulating imports and supporting local production will help farmers earn more and strengthen food security.

The dairy sector remains a vital part of Kenya’s agricultural economy. It supports millions of livelihoods and contributes significantly to the country’s GDP. With the right policies and investments, the sector can continue to grow and provide opportunities for farmers and agribusinesses. The Kenya dairy import levy 2026 is part of that journey. The work continues. The farmers are ready. The future is bright.

https://farmerstrend.co.ke/wp-content/uploads/2026/06/Kenya-Dairy-Import-Levy-2026.jpghttps://farmerstrend.co.ke/wp-content/uploads/2026/06/Kenya-Dairy-Import-Levy-2026-150x150.jpgFarmersTrend# TrendingThe Kenya dairy import levy 2026 of 10 percent aims to shield local farmers from unfair competition. The move follows a trade dispute with Uganda over milk imports.Kenya has imposed a 10 percent import levy on dairy products. The move aims to cushion local dairy farmers from unfair competition...New Generation Culture in Agriculture