Cooperatives & SME Cabinet Secretary Simon Chelugui, on Tuesday, announced that the government had removed select taxes and levies for farmers.
In a statement, the CS stated that the removed taxes and levies targeted imported raw materials for animal feeds in an effort to lower the cost of production.
"As the government, we take this early opportunity to assure our dairy farmers of our unwavering support and commitment to ensuring that the dairy industry continues to be stable," he stated in a statement shared on his social media pages.
According to the CS, it was a disadvantage to dairy farmers since animal fees accounted for 60 per cent of the total cost of milk production.
In the reforms to help dairy farmers, especially during the El Nino season, the government has allocated funds to the Kenya Creameries Corporation (KCC) to help deal with the surplus milk.
KCC will receive Ksh500 million in the first installment which will be used to dry milk into powder and deal with the excess products.
"This will enable the new KCC to purchase, dry into milk powder, and store the surplus milk as part of the strategic food reserve, and hence even seasonality in supply," Chelugui stated.
The government estimated that the heavy rainfall expected to last till January 2024 will result in an extra 50 million liters of milk.
All measures put in place will thus ensure the milk does not go to waste. Farmers will also be assured of a market for their produce.
Further, the government will support the moderation program to enhance the processing capacity and ease the functionality of the new KCC.
Ksh3.8 billion has been set aside by the government to carry out modernization in various parts of the country.
Selected areas are, Runyenjes, Mogotio, Kabianga, Narok, Dandora, Miritini, Eldama Ravine, Eldoret, Sotik, and Kitale Plant as phase III.
