How Meru Dairy Farmers Are Powering Kenya’s Local Economy

In a time when many Kenyan dairy farmers struggle with delayed payments and low farm-gate prices, Meru County tells a very different story. 

How Meru Dairy Farmers Are Powering Kenya’s Local Economy
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Backed by a strong cooperative model, modern processing infrastructure, and consistent government support, Meru dairy farmers have emerged as one of the most powerful drivers of local economic growth in Kenya.

At the heart of this transformation is the Meru Central Dairy Cooperative Union, now the largest milk processor in the country.

Kenya’s Biggest Processor

The Meru Central Dairy Cooperative Union brings together over 100,000 farmers, mainly from Imenti but also neighboring counties such as Tharaka Nithi. 

According to CEO Kenneth Gitonga, the union currently processes about 640,000 litres of milk per day, a figure unmatched nationally.

Meru Central Dairy Co-operative Union CEO Kenneth Gitonga
Meru Central Dairy Co-operative Union CEO Kenneth Gitonga 

Even more remarkable is its financial performance:

  • Annual revenue: Approximately Sh24 billion

  • Milk payment: Sh50 per litre, paid on time

  • Bonus: Additional Sh2 per litre for farmers

This stable income has positioned dairy farming as a reliable livelihood and a backbone of Meru’s rural economy.

Dairy Revenues Outperform County Government Budgets

Meru Deputy Governor Linda Kiome-Gitonga recently highlighted the union’s economic weight, noting that its annual revenue exceeds the Meru County Government’s Sh17 billion budget.

Meru Deputy Governor Linda Kiome-Gitonga
Meru Deputy Governor Linda Kiome-Gitonga

This comparison underscores how cooperative-driven agribusiness can outperform traditional public revenue streams when well managed.

“The CEO here controls a bigger budget than what we have as a county government,” she remarked during the commissioning of new dairy feed equipment.

Farmers at the Center: Real Impact on Livelihoods

For farmers like David Mwenda, who has supplied milk to the union for over 20 years, the impact is tangible.

  • Daily delivery: 540 litres

  • Herd size: 42 cows

  • Top cow yield: 42 litres per day

Consistent pricing, bonuses, and extension services have allowed farmers to invest in better breeds, nutrition, and animal health—creating a virtuous cycle of productivity and income growth.

Affordable Feeds and the Meru Maziwa Millers Project

One of the union’s most strategic investments is the Meru Maziwa Millers feed factory in Mitunguu, South Imenti.

Key facts:

  • Total cost: Sh486 million

  • Government contribution: Sh200 million

  • Initial capacity: 10,000 tonnes

  • Daily output: Up to 20 lorry loads of feed

Since animal feed accounts for nearly 50% of dairy production costs, local manufacturing will significantly reduce expenses while improving milk quality and safety.

A second expansion phase, estimated at Sh200 million, is already planned.

From 100,000 to 640,000 Litres: How Meru Did It

Just a few years ago, daily milk deliveries stood at only 100,000 litres. The dramatic growth was driven by:

These initiatives strengthened trust between farmers and management—an essential factor in cooperative success.

National Recognition and Political Support

Meru Dairy’s success has attracted attention at the highest levels of government.

President William Ruto, alongside Deputy President Kithure Kindiki, has repeatedly praised the union’s leadership and farmers, pledging continued government support.

“I thank Meru Dairy, which is paying Sh53, with Sh50 going to the farmer,” President Ruto said during a recent visit.

Former CS Simon Chelugui later appointed CEO Kenneth Gitonga to the Nairobi Coffee Exchange board, citing his proven track record in cooperative reform and market efficiency.

A Cooperative Built to Last

Founded in 1967 by the Naari, Katheri, and Buuri dairy cooperatives, the union has steadily evolved:

  • First processing line installed in 1982

  • Major expansion completed in 2015

  • Current product range includes:

    • Fresh pasteurised milk

    • Mala and yoghurt

    • Butter, ghee, cream

Today, the union is also eyeing export markets, signaling its transition from a regional processor to a globally competitive agribusiness.

A Blueprint for Kenya’s Dairy Sector

Meru’s dairy success proves that well-run cooperatives, supported by infrastructure investment and fair pricing, can transform rural economies. 

By empowering farmers, lowering production costs, and ensuring market access, Meru Central Dairy Cooperative Union has created a sustainable model other regions can replicate.

As Kenya seeks to strengthen food security, create jobs, and grow exports, Meru’s dairy farmers are showing the way.

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