NAIROBI, Kenya – Kenya is seeking to tap into Algeria’s dairy market as part of a broader push to expand its footprint in international trade.
Kenya Dairy Board (KDB) acting managing director Kimutai Maritim said a delegation recently visited Algeria to explore export opportunities, particularly for powdered milk. Formal government-to-government talks are expected to follow soon.
“Algeria and the wider Middle East present fresh opportunities, especially for powdered milk. Negotiations will soon begin to secure this new market,” Maritim said.
Scaling up production
To meet both domestic consumption and new export demands, the government is rolling out measures to increase milk production five-fold—from the current two billion litres to 10 billion litres annually.
“This is a huge leap, but the government is making strategic interventions to fast-track growth in the industry,” Maritim said.
The interventions include subsidising artificial insemination services to improve livestock genetics.
The price of quality semen has been reduced from Sh6,000 to Sh1,000 per dose to boost uptake among farmers and increase the number of high-yielding dairy cows.
The government has also waived taxes on key feed ingredients and partnered with the private sector to strengthen fodder production, making dairy farming more affordable.
Growing industry, rising demand
Kenya’s dairy sector is the largest in East Africa, producing about 5.3 billion litres annually and contributing 4.5 per cent to the national GDP and 12 per cent to agricultural GDP.
Kenyans consume an average of 92 litres of milk per person annually—the highest in the region.
With population growth, per capita consumption is projected to double in the coming years, which could push annual production requirements to more than 18 billion litres.
Despite the growing demand, more than half of Kenya’s milk is traded in informal markets, which provide livelihoods for youth and women while keeping prices affordable.
However, the formal sector—comprising cooperatives, processors, and retailers—has steadily expanded and now supplies about 20 per cent of consumer demand.
A 2024 report by the Ministry of Agriculture shows milk production rose last year due to favourable weather, with processors purchasing a record 98.4 million litres—representing a 12 per cent growth.
Maritim stressed that value addition will be central to Kenya’s export ambitions: “Only value-added products can be exported competitively, and that is where the government is focusing its efforts.”
