Up to 30,000 dairy farmers are set to benefit from a Sh1.2 billion private-public partnership meant enhance production as well as quality.
The project is targeting high production regions of Rift Valley and eastern Kenya and comes a time when demand for milk is expected to outstrip supply by 2020 based on estimates.
According to USAID Kenya Agriculture Value chain enterprise project, milk volumes are projected to grow from eight billion litres to 10 billion in the next three years against a demand of 12 billion litres.
Key factors for demand include the rising population, growing household incomes, rural-urban migration, expanding supermarket networks and changing eating habits of Kenyans who are craving for high nutritional foods
The Rift Valley segment will incorporate Nandi, Uasin Gishu, Elgeyo Marakwet and Trans-Nzoia while in Eastern region participating county is Tharaka Nithi.
The new Kenya market led dairy supply chain project, which will be implemented by the US based Heifer International is aimed at fighting poverty and hunger through sustainable agriculture and entrepreneurship.
"This is a unique opportunity to focus the work of farmers organisation, private sector players and county governments on delivering effective solutions to increase dairy production and productivity which will lead to more incomes to 30,000 smallholder farmers," said Mr George Odhiambo, the country director Heifer in Kenya.
Besides the US based Heifer International, other partners is the Swedish International Development Co-operation Agency (Sida) which has contributed Sh278 million.