Published as as FARA Guide Book 2019
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Currently, Kenya has one of the most developed dairy sub-sector in Sub-Saharan Africa and has an annual growth rate of 4 to 5%. The sub-sector contributes 40% of the agricultural gross domestic product (GDP) and 4% of the national GDP estimated at over KES 100 billion (Kenya, 2014). Persistent food shortage is a common occurrence in many sub-Saharan African countries. Several initiatives have been implemented to address this problem where some of them have recognized the role of innovations in spurring agricultural development. Hence, the use of innovations in agriculture and development in addressing the challenges of feeding an increasingly populous and resource-constrained Africa is receiving prominence. Dairy provides income and creates employment for producers and others actors in the whole value chain process (Herrero et al., 2012; Smith et al., 2013). However, more than 75% of milk in Kenya is marketed through informal channels where only about 400 million liters a year goes through 30 processors and other formal milk marketers. This is evident in the number of jobs created where 40,000 jobs are created in the informal sector while in the processing sector only a total of 15,000 jobs are created. It has been estimated that for every 1000 liters produced at farm level daily, there are 77 direct farm jobs created which translates to 841,000 full time jobs country wide.