Kenya targets milk output surge as Kagwe commissions new Sh3 billion feeds mill

Business · Bradley Bosire · February 18, 2026
Kenya targets milk output surge as Kagwe commissions new Sh3 billion feeds mill
Cabinet Secretary for Agriculture and Livestock Development Mutahi Kagwe, Machakos Governor Wavinya Ndeti, Principal Secretary for Livestock Development Jonathan Mueke, and Henk Jan Bakker, Ambassador of the Kingdom of the Netherlands among other guests during the commissioning of a Sh3 billion animal feed manufacturing plant by De Heus Kenya in Athi River/HANDOUT
In Summary

The new plant includes a modern laboratory equipped for mycotoxin analysis, forage testing, shelf-life assessment and real-time raw material screening using Near-Infrared Reflectance technology.

Cabinet Secretary for Agriculture and Livestock Development Mutahi Kagwe has commissioned a Sh3 billion animal feed manufacturing plant by De Heus Kenya in Athi River, marking a significant investment aimed at transforming Kenya’s livestock sector.

Speaking during the launch of the facility, Kagwe said the project represents a strategic shift in livestock development policy—from expanding herd numbers to enhancing productivity per animal.

“Today is not just about commissioning a factory. It is about transforming Kenya’s livestock economy. We will double milk production from 5.2 billion litres to 10 billion litres not by increasing the number of cows, but by increasing productivity per cow,” he said.

The event drew national and county leaders, diplomats, farmers and industry stakeholders. Among those present were Machakos Governor Wavinya Ndeti, Principal Secretary for Livestock Development Jonathan Mueke, and Henk Jan Bakker, Ambassador of the Kingdom of the Netherlands.

Royal De Heus, the parent company of De Heus Kenya, ranks among the world’s top 10 animal feed producers, operating over 80 production facilities across more than 20 countries.

Its Kenyan subsidiary began operations in 2023 and has now completed what is described as the largest pellet-making feed mill in the region.

The Athi River plant has an annual production capacity of 240,000 metric tonnes, with two pellet lines capable of producing 20 metric tonnes per hour each.

It is expected to create 280 direct jobs and more than 1,000 indirect employment opportunities within logistics and raw material supply chains.

Kagwe emphasised that feed quality will be central to Kenya’s ambition of becoming a net exporter of live animals and meat products.

“The quality of Kenya’s exports will rely on the quality of animal feed,” he said, adding that the government will introduce a feed quality index to address substandard and over-diluted formulations that undermine farmer productivity.

He also cited growing international demand for milk powder in markets such as Algeria, reiterating the need for consistent, high-quality milk suitable for processing and export.

Under the Land Commercialisation Initiative, Kagwe said the government is unlocking public land for structured production of yellow maize and soya beans—key feed inputs—while integrating smallholder farmers through contract farming arrangements.

To mitigate climate-related shocks, he announced plans for the construction of 50 dams nationwide to expand irrigation and reduce reliance on rain-fed agriculture.

Structured feed reserves are also planned to stabilise prices during drought periods.

The new plant includes a modern laboratory equipped for mycotoxin analysis, forage testing, shelf-life assessment and real-time raw material screening using Near-Infrared Reflectance technology.

Governor Ndeti welcomed the investment, describing it as a boost to Machakos County’s growing agro-industrial base, while Ambassador Bakker reaffirmed the Netherlands’ support for agricultural innovation and trade partnerships with Kenya.

Commissioning the facility, Kagwe said the investment reflects confidence in Kenya’s agricultural future.

“We are strengthening regulation, enforcing standards, commercialising land, expanding irrigation, and modernising agriculture,” he said.

“This facility represents confidence in Kenya’s future — a future built on quality, productivity, and export competitiveness.”

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