Kenya has a population of about 29 million people, a land area of about 571 thousand square kilometers and a varied climate stretching from humid in the coastal areas to cool temperate in the interior highlands. Its land productivity potential also varies from high potential, constituting less than 20% of the total land area, to very low potential in dry areas in the north-eastern parts of the country.

Agriculture is the backbone of Kenya’s economy, contributing over 25% of the gross domestic product (GDP); it is the lifeline of about 80% of the country’s poor and contributes 70% of the national employment.

Kenya has a unique smallholder dairy system, which is the most developed in sub-Saharan Africa with an estimated dairy herd of 3 million head. Most of the dairy cattle are crosses of Friesian–Holstein, Ayrshire, other dairy breeds and local zebus. The smallholder dairy farms are concentrated in the crop–dairy systems of the high productivity potential areas of the country, produce about 60% of total milk production and contribute over 80% of the marketed output.

Dairy marketing in Kenya is mainly of liquid milk where over 80% is sold raw with the participation of itinerant milk traders (hawkers) who control about 28% of marketed milk (Staal et al. 1999), despite a policy that discourages them.

Dairy is important in the livelihoods of many farm households in rural Kenya and in terms of generating incomes and employment, including off-farm employment.

The presence of a large population of dairy cattle, a large and growing human population who include milk as part of their diets and a supportive environment are indications of the opportunities that exist for smallholder dairying in Kenya.

Investment in the national rural infrastructure such as rural access roads, water supply and electricity and economic improvement in the country will allow for increased milk supply and consumption, and will contribute to increased employment.