Dairy board gives nod to use of milk vending machine

The Kenya Dairy Board has approved a new technology introduced by a milk seller in Eldoret for instant processing of the commodity before sale.

Kenya Dairy Board North Rift branch chairman Pius Cheserek said the Milk ATM by the proprietor in Eldoret town had inbuilt boiling and pasteurisation compartments, meeting the safety requirements of the regulator.

“The machine is the best recourse for traders affected by the ban on hawking of raw milk because it meets the health requirements. Farmers should organise themselves into groups to buy the machines to extend the life of their milk and engage in the business,” said Mr Cheserek.

The machine costs Sh7 million. The automated machine was installed in Eldoret town last week, posing competition to packed milk sold in shops whose prices are higher following the introduction of a 16 per cent Value Added Tax starting this month.

Milk at the ATM is sold for as low as Sh5 depending on the volume, allowing customers to manage their budgets. Processed milk in supermarkets in Eldoret is selling at Sh55 for a half litre satchet, up from Sh45. The same volume at the dispenser costs Sh30.

“This machine cuts the costs of packaging, processing and transportation, making the prices of milk affordable. The only thing required for the customer is a coin, which they would slot in depending on the volume they want to purchase,” said Milk ATM business manager Robert Boit.

He added that he was selling up to 800 litres of milk in a day.

“Hotels have come in and at times they would purchase up to 100 litres per day,” Mr Boit said.

A customer inserts money depending on the amount of milk they need and presses a button which releases milk down a pressure outlet.

The VAT on processed milk together with the crackdown on raw milk hawking has left low income consumers in a quandary, forcing them to reduce the intake or forego the commodity altogether.

Joseph Masinde, a blacksmith in Eldoret town who used to buy two litres of milk a day for about Sh180, said he now gets the same quantity for Sh120 from the milk machine, saving Sh100 when the VAT is factored in.

“This milk machine has been of advantage to me. My family doesn’t need to boil the milk in the evening,” said Mr Masinde.

Mr Boit wants to spread the business to Kapsabet, Kitale and Nakuru by year end.

However, this has not gone down well with large scale milk processors who want the playing field levelled, arguing that they had lost a quarter of the sales to competitors who are not subjected to VAT since the consumer tax came into effect.

Last month, the Kenya Dairy Board announced a ban on milk hawking citing compromised quality and the need to ensure consumers are protected from health risks associated with handling of the commodity by the vendors.

Small-scale farmers objected to the ban saying that it stopped them from fetching a fair price for their produce.