Small-scale farmers dominate Kenya’s dairy industry that is among the largest and one of the most successful in Africa. Despite the dairy policies in place, the smallholder dairy farmers are still subsistent and are yet to attain global competitiveness. This study explored socioeconomic characteristics, motivation, perceptions and challenges of smallholder dairy farmers in Kenya. The study used a mixed approach method of cross section survey and multistage sampling procedure to select a sample of 380 smallholder dairy farmers from Nakuru and Nyandarua counties. Structured questionnaires and Focus Group Discussion provided the data for analysis. The study results indicated that smallholder milk productivity was below the world leaders. Zero grazing was the most productive system while open grazing was the dominant production system. Land, income and market factors were core for smallholder dairy farming performance. Even though household dairy commercialization level for Nakuru and Nyandarua Counties were relatively low, Nyandarua County had higher level of smallholder dairy commercialization compared to Nakuru County. Majority of the dairy farmers were intending to continue with dairy production. Those planning to exit cited the venture as either being expensive, not profitable or risky. Challenges faced by the smallholder farmers related to productivity, infrastructure and institutions. To reduce productivity challenges, the study suggested review of land policies, improvement in animal feed, veterinary and insemination services. To reduce infrastructural impediments the study suggested improvement in roads network, rural electrification (and promotion of other sources of energy) storage facilities and exploration of alternative milk preservation methods. Institutional impediments need improvements in financial accessibility, extension services and customized research and technological innovations.
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