New KCC has cut the shelf price of milk by at least Sh5 following a 25 percent rise in volumes from farmers.
The price of a 500ml long life milk will now retail at Sh50 from Sh55 with fresh milk on pouch package selling at Sh48 from previous Sh50. The relief to consumers shifts focus to other processors who might follow suit to remain competitive.
New KCC managing director Nixon Sigey says the firm is responding to an increase in milk intake to pass on the benefits to the consumers who have grappled with high prices in the last three months.
“The consumer prices are coming down as we respond to increased supply in the market,” said Mr Sigey.
He said the new prices were effected on July 2 and should shortly reflect in retail outlets.
He says though KCC has not gotten to the levels where it was in the last two months, the quantities are sufficient to change prices. The volumes have not reached the expected levels because of the cold season, which is unfriendly to cows.
He said the country had suffered one of the worst droughts in years taking more months than anticipated.
The start of long rains this year delayed for two months, as the downpour started in May, not March as forecast.
Kenya Dairy Board managing director Margret Kibogy said there were signs of recovery in the sector following good rains that sparked growth of fodder.
“We are now witnessing improved volumes in the sector following the rains that started in May,” said Ms Kibogy.
The regulator had last month said high prices would continue through July tied to the cold season.