What problem or need did the project address?
Kenya’s informal milk industry provides a livelihood for thousands of small-scale farmers and milk traders as well as a source of cheap, unprocessed milk for poor families who cannot afford the packaged milk on sale in shops and supermarkets.
Current legislation, however, favours the interests of large-scale commercial operators and processors, resulting in harassment and threats to the livelihoods of informal traders and small-scale dairy farmers.
A new Dairy Policy is being drafted, but unless those in the informal milk sector have input into the policy discussions there is a strong possibility that it will be shaped according to the interests of the commercial sector, which are not the same as those of the raw milk sector.
What did the project do?
The project helped groups of traders to form associations which allow for proper certification, and the delivery of training programmes to improve hygiene and product quality. It also enabled them to engage with policy makers so their interests are protected in any future legislation.
What impact has the project had?
By the end of the project 4500 traders organised themselves into 10 associations, and a national umbrella body, the Kenya Dairy Traders Association, has been organised and registered.
The project has been effective in achieving a number of results:
- The Kenya Dairy Traders Association and 10 regional associations have been officially registered by the government
- Traders reported reduced harassment by authorities (88% reported reduced harassment from regulators)
- Traders reported a 30% increase in their sales of milk
- They have a better understanding of the regulations and licensing they need to comply with
- Over 1,000 traders have received training on milk handling and business skills, organised by their associations
- The dairy trader associations have agreed a code of conduct, approved by the Kenya Dairy Board, which their members must adhere to. They have also developed self regulation mechanisms and penalties for members who do not follow the code. This has ensured them a ready market for their milk as it is seen to be safe compared to that sold by traders who have not joined the associations
- Forming associations has meant traders can combine their savings, enabling them to access credit from financial institutions to improve their businesses. One such group is the Kirinyaga Milk Traders Association where 30 members have managed to borrow money to buy motorcycles to transport their milk. They are now able to get their milk to the market on time and they can also transport larger volumes
- Traders are increasing in confidence which is allowing them to increase the volume of milk they are selling, thus increasing their incomes
- Through the Dairy Traders Association, they have started to dialogue with decision makers and negotiate for representation in decision making forums.
Sisty Rugut is one of the traders participating in the project:
"Before we joined the association we used to face so many problems but now we have our representatives, who can forward our problems, we are free to trade. We always have monthly meetings and sometimes, when matters arise, we can call a meeting for an emergency. Most of the problems were we had some harassment from police, problems with the Kenyan Dairy Board and public health officers. Our problems have been solved.
"We have had some training about milk handling and testing. We test our milk. We start with the farm kit. We test it at home and bring the milk to the centre and before we sell we test it is good."
Our local partner
Our local partner in the project is SITE Enterprise Promotion, a Kenyan NGO whose goal is the promotion of employment opportunities and economic growth among small-scale producers.
How was the project funded?
This project is funded by the UK Government’s Department for International Development
(DFID).
