How to Start a Milk Collection Centre in Kenya: Equipment, Licences and Margins
- Close to farmers, with power
- KDB licence
- Test every delivery
- Cool fast; keep records
On this page
Step-by-Step
- Check supply: how many farmers, how many litres, morning and evening.
- Find buyers first: processors, milk bars or milk ATM shops.
- Choose a site: on farmers’ routes, with reliable power, clean water and a concrete floor.
- Licence: register with the Kenya Dairy Board and get county permits.
- Equipment: chiller, cans, lactometer, scale, sink and cleaning supplies.
- Records: each farmer’s litres, quality and payments.
Equipment
100 LTRS MILK CHILLERKSh 280,000
300 LTRS MILK CHILLERKSh 330,000
500L MILK CHILLERKSh 450,000
LactometerKSh 500
Double sink with tableKSh 68,000| Product | Price |
|---|---|
| 100 LTRS MILK CHILLER | KSh 280,000 |
| 300 LTRS MILK CHILLER | KSh 330,000 |
| 500L MILK CHILLER | KSh 450,000 |
| Lactometer | KSh 500 |
| Double sink with table | KSh 68,000 |
Current listed prices incl. VAT (updated 11 October 2026).
Milk cans and handling: milk cans guide; chiller sizes: size guide; transport: cold chain.
Testing Every Delivery
- Smell and look (no clots or off smells).
- Lactometer for added water (lactometer guide).
- Alcohol test for freshness where used.
- Reject bad milk and record it.
How the Margin Works
Your margin is the difference between what you pay farmers and what buyers pay, minus power, labour, losses and transport. Model it with the milk collection centre profit calculator.
Worked Example (Illustrative)
A centre collects 400 litres a day. A 500 L chiller holds it with spare room. If the centre keeps a few shillings per litre after costs, that margin × 400 litres × 30 days is the monthly profit. Selling some milk retail through a milk ATM usually earns more per litre (milk ATM vs packaged).
Co-operatives
Many centres are run by dairy co-operatives: milk chillers for co-operatives.
Watch: Milk chillers and pasteurizers
Frequently asked questions
How do I start a milk collection centre in Kenya?
Secure farmers and buyers, choose a site with power, get a KDB licence, and install a chiller and testing kit.
Do I need a licence for a milk collection centre?
Yes, from the Kenya Dairy Board, plus county permits.
What size chiller does a collection centre need?
About 1.5 times the daily intake.
How do collection centres make money?
From the margin between farm-gate and selling prices, after costs.
How do I test milk from farmers?
Check smell and look, use a lactometer and an alcohol test, and record results.