The draft sessional paper on dairy industry development of 2006 which is yet to be enacted in parliament repeals the dairy policy of 1958. If enacted into new policy, the standards of camel milk will be defined and camel milk will be recognized as a dairy product in Kenya. This means that the camel milk will be marketed to new areas and to people who have not consumed it before. This study undertook to investigate the potential consumers’ willingness to pay for camel milk. A multistage sampling technique was used for data collection. The effects of socio -economic characteristics of potential consumers on willingness to pay were analyzed using the logistic regression model.

Results show that the likelihood of willingness to pay for the camel milk amongst potential consumers who are aware of camel milk being processed and consumed elsewhere is three times more than those who are not aware. Other than awareness, employment status, total household income, age, level of education and family size have no significant effect on willingness to pay. The potential consumers are willing to pay a 7% premium on the camel milk above the price of a unit volume of camel milk. The implication of these findings are that irrespective of other factors, the potential consumers are willing to pay for camel milk so long as they are sensitized widely and prices charged do not exceed 7% of the existing cow milk prices at any given place.