How to Start a Milk Business in Kenya

ByTristram Ouma

Mar 26, 2023
How to start a Milk Business in Kenya

Last updated on March 2nd, 2024 at 05:41 pm

Starting a milk business in Kenya can be a profitable and rewarding venture. With a growing demand for milk products, a favorable climate for dairy farming, and a supportive government, there is a lot of potential in this industry. In this guide, we will provide you with a step-by-step approach to starting a milk business in Kenya.

Starting Cost Breakdown

Land LeaseKsh 5,000
Dairy cows (3)Ksh 120,000
Feeds and supplementsKsh 50,000
Milking equipmentKsh 30,000
Veterinary servicesKsh 10,000
TotalKsh 215,000

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Selecting the right location for your milk business is crucial. The ideal location should have good access to transport, water, and electricity. Additionally, it should be close to the market to reduce transportation costs. Areas with a high concentration of dairy farmers and milk processors are recommended.


To start a milk business in Kenya, you will need the following:

  • Land for lease or purchase
  • Dairy cows
  • Feeds and supplements
  • Milking equipment
  • Veterinary services
  • Business permit and licenses from relevant authorities

Market size

The milk market in Kenya is growing, with a high demand for milk and dairy products. According to the Kenya Dairy Board, the country produces over 5.2 billion liters of milk annually, with a consumption rate of 120 liters per person per year. This presents a huge market opportunity for milk businesses.

Earnings per day: The earnings from a milk business depend on various factors such as the number of cows, milk production, and market prices. On average, a dairy cow can produce between 15-30 liters of milk per day, and a liter of milk can be sold at Ksh 50. With three cows, you can earn around Ksh 2,250 to Ksh 4,500 per day.

Pros and Cons


  • High demand for milk and dairy products
  • Favorable climate for dairy farming
  • Supportive government policies
  • Potential for high profits


  • High initial investment cost
  • Risks associated with animal health and milk production
  • Competition from existing milk businesses

Conclusion: Starting a milk business in Kenya requires careful planning and investment. With the right resources, location, and market knowledge, it can be a profitable venture. We hope this guide has provided you with valuable insights on how to start a milk business in Kenya.

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