The Department of Livestock is seeking Sh2 billion from the Treasury to mop up excess milk following a glut in the market.
Kenya Dairy Board (KDB), the sector regulator, says the country has witnessed a surplus of 18 million kilos monthly since July.
Managing director Margret Kibogy says the monthly need is 50 million litres but the sector has seen in excess of 65 million kilos every month since July.
“We are requesting funds for the New Kenya Cooperative Creameries (New KCC) for mopping up excess milk in the market being witnessed currently,” said Ms Kibogy.
The money will be used in converting surplus milk into long-term products such as UHT and powder milk, which can be reconstituted in times of shortages.
Livestock Principal Secretary Harry Kimtai said a proposal has been written to the Treasury for funding. “We have written a proposal to Treasury to give the funds to Strategic Food Reserve (SFR) for mopping up of excessive milk from the market,” said Mr Kimtai.
SFR stocks both grain and other food items after the name was changed in 2017 from Strategic Grain Reserve, to accommodate other foodstuff.
In the previous financial year, the State gave Sh1.5 billion to cater for conversion of surplus milk. Ms Kibogy said the board is anticipating a surplus of 105 million litres between July and December.