CS Kagwe explains why milk prices are still high despite the govt minimum price

Kenyans may face continued high milk prices despite the government's minimum price policy, according to Agriculture Cabinet Secretary Mutahi Kagwe. In a Senate speech on September 16, 2026, Kagwe shifted focus from the minimum price mandate to the cost of producing milk. He explained that current market prices are already higher than the government's minimum, suggesting a price hike via the minimum alone would be ineffective.

Kagwe emphasized that lowering production costs could make dairy farming more profitable for farmers, addressing both farmer sustainability and consumer affordability. He argued that improving production costs would provide a more sustainable solution compared to increasing milk prices. However, the reality is that milk's price on supermarket shelves differs from the government's minimum floor price.

While the government's minimum price is separate from retail prices, efforts to reduce production costs could help stabilize supply, tackle shortages, and lower prices for consumers. Factors such as feed prices, farm productivity, milk collection infrastructure, and supply reliability are critical to affordability. In summary, Kagwe's emphasis on production costs highlights the need to address multiple aspects beyond the government's minimum price to achieve affordable milk prices for Kenyan households and ensure farmers' profitability.