President Uhuru Kenyatta has directed Treasury to release Ksh. 500million to buy all excess milk and turn it to powder milk.
Speaking on Tuesday in his address to the nation, the President said his second priority this year is to increase money in the pockets of Kenyan farmers.
“I direct the National Treasury to impose 16% Value Added Tax on milk imports from outside the East African Community. I also order the National Treasury to release Ksh. 575million to purchase processing plants in Nyeri and Nyahururu,” he said.
He further ordered the release of Ksh. 375million to buy rice from Kano and Mwea for distribution to disciplined forces and boarding schools.
The president also noted that KTDA should make certain changes in their sector to enable farmers yield more profits.
“KTDA and tea selling must have some radical changes to enable farmers earn more. From a sale of Ksh. 91, farmers are getting only 40. 50 bob goes to middlemen,” the President lamented.
“Some people have taken advantage to exploit farmers. Soko huru or mùkohoro buy from farmers and sell to KTDA directly,” he added.