Kenya faces milk shortages and rising costs amid dry spell

Kenya is experiencing a significant disruption in its dairy sector due to prolonged dry conditions linked to El Niño patterns. The shortage has led to empty supermarket shelves in Nairobi and rising retail prices for fresh milk. According to the Kenya Dairy Board, formal-sector milk collection fell to 75 million litres in August from 84.4 million litres in June, with July collections showing a 5.8% decline compared to the previous year.

While upcoming rains are expected to alleviate the milk shortage by improving pasture for cattle, experts note that other essential food items like bread and cooking oil are unlikely to see price relief. This is because the costs of wheat and palm oil are determined by international markets in the Black Sea and Southeast Asia, respectively.

Rising production costs are further straining the industry, with animal feed now accounting for approximately 70% of production expenses. The dairy sector remains a vital part of the Kenyan economy, contributing 4.5% to the national GDP and supporting roughly 1.8 million smallholder households.