Understanding the factors affecting smallholder dairy farmers' adoption of various milk marketing channels is essential to implementation of dairy marketing liberalization policies in Kenya Highlands. Purposive multi stage using Probability Proportion to Size sampling design across different agro-ecological zones in Kenya highlands was used to evaluate the rationale underlying smallholders' milk marketing channel choice using Econometric Logit Models.

Logit models of milk marketing channels through itinerant traders (hawkers, neighbors and hotels) were non-significant (P > 0.05) but dairy cooperative was significant (P < 0.05). Eleven explanatory variables were significant (P < 0.05) in explaining farmers' adoption of milk marketing through the dairy cooperative channel. Leases land, average milk price [Kenya shillings (KES) /kg], total number of cow milked and farm acreage negatively influenced farmers' adoption of milk marketing through the dairy cooperative channel. Upper midlands, lower highlands, hired permanent labour, household head worked off-farm, average milk production per cow (kg / day), dairy cooperative as a source of animal production information, and availability of credit services had positive influence.

Farmers should be encouraged to undertake additional activities which stabilize household incomes to enable them adopt dairy technologies without exposing them to additional risk e.g. off-farm activities facilitate adoption of dairy technologies by the risk oversee farmers. Programs to improve and strengthen cooperatives can contribute to the development of dairy industry and substantially contribute to alleviating poverty.