Milk consumers in western Kenya and the Rift Valley will have more products on the shelves following the entry of a new processor in the market.
Nyamira-based Highland Creameries and Food Limited has started off with the production of 200,000 litres of milk per day from its Sh1 billion factory in Borabu.
“The firm processes fresh and long life milk which are being received well in the market,” said Highland Creameries chairman Jabesh Bichanga.
“We have ventured into dairy processing at a crucial time where there is a scarcity of milk, increased prices and unreliability and health concerns on dairy output. As a firm, however, we want to provide quality dairy products not only in Kenya but East and Central Africa within the next five years.”
The company distributes its products in Kisii, Narok, Nakuru and Nairobi.
The firm is expected to intensify competition in a sector dominated by Brookside Dairies, the country’s largest milk processor.
Brookside has over time built up an estimated 40 per cent market share after a string of acquisitions and annual sales of more than Sh15 billion.
Highland Creamaries is the only milk processing factory located in Gusii region.
Currently most farmers in the region are involved in informal milk marketing (hawking), which is being discouraged by the Kenya Dairy Board.