Kenya intends to slap a 16% value added tax on all imported milk products that originate outside the East Africa community in a move to protect local farmers who are facing a glut and low prices in the market.
The announcement was made by President Uhuru Kenyatta, whose family is the majority owner of Brookside Dairies, the country’s largest milk processor.
He promised to “increase the money in the pocket of the farmer… as opposed to the middle men and brokers”.
He also announced the release of $10m (£7.6m) to the country’s national dairy processor, the Kenya Co-Operative Creameries (KCC), to purchase excess milk from farmers to convert into powder milk.
The funds will also be used to enhance the KCC’s processing capacity in two of its plants located outside the capital, Nairobi.