Updated 26 October 2026
Anyone who sells, processes, cools or dispenses milk for business in Kenya needs a regulatory permit from the Kenya Dairy Board (KDB), and a dairy business licence from their county. On KDB’s published fee list, the permit is free for milk bars, cottage industries, mini dairies, milk dispensers and cooling plants, while processors pay KSh 25,000 a year (under 20,000 litres a day) or KSh 50,000 a year (above 20,000 litres). The separate licence fees run from KSh 1,000 for a cooling plant to KSh 25,000 for a processor. Applications are made online and every permit lasts 12 months.
This guide sets out each permit category, the fees, what KDB inspects, the step-by-step process, and the levies you start paying once you open. It is written for people starting a milk ATM or milk bar, a yoghurt or mala business, a farm cooler or a full processing plant.
In this guide
- Kenya Dairy Board Permit Fees at a Glance
- Permit, Licence or Registration: What Is the Difference?
- What KDB Checks Before It Issues a Permit
- How to Apply: Milk Bars, Dispensers, Cottage Industries and Mini Dairies
- How to Apply: New Processing Plants and Cooling Plants
- Renewing Your Permit
- Levies and Cess After You Open
- Offences and Penalties
- Cost Example: Opening a Milk Bar
- Contact the Kenya Dairy Board
- Frequently Asked Questions
Kenya Dairy Board Permit Fees at a Glance
KDB’s Permit Categories and Fees page lists the following amounts. The application itself is free in every local category.
| Category | Who it is for | KDB regulatory permit (per year) | Licence fee |
|---|---|---|---|
| Milk bar | Retail outlet that dispenses dairy produce to consumers for their own use | Free | KSh 2,500 |
| Dairy produce dispenser | Operator using a vending machine (milk ATM) to dispense processed milk | Free | KSh 2,500 |
| Cottage industry | Farm-level processing and value addition up to 500 kg of milk a day | Free | KSh 4,000 |
| Mini dairy | Processing above 500 kg and up to 10,000 kg a day | Free | KSh 6,000 |
| Cooling plant | Facilities bulking and cooling raw milk (below or above 5,000 litres a day) | Free | KSh 1,000 |
| Processor (below 20,000 litres a day) | Large-scale processing | KSh 25,000 | KSh 25,000 |
| Processor (above 20,000 litres a day) | Large-scale processing | KSh 50,000 | KSh 25,000 |
| Primary producer registration | Farmers selling milk | Not applicable | Free |
Trade across borders has its own permits on the same KDB page:
| Permit | Annual fee | Application fee | Per consignment |
|---|---|---|---|
| Import permit | KSh 100,000 | KSh 1,000 | KSh 5,000 |
| Export permit | KSh 1,000 | KSh 1,000 | KSh 1,000 |
| Transit permit | Free | Free | Free |
Permit, Licence or Registration: What Is the Difference?
The 2021 Regulations split dairy paperwork between the Board and the counties, which is why people often pay two fees.
- Regulatory permit (KDB). Regulation 14 says nobody may operate a dairy business without a regulatory permit from the Board. KDB inspects the premises before issuing it.
- Dairy business licence (county). Regulation 9 requires a valid dairy business licence from the relevant county government. The county must decide within 30 days, and under regulation 11 it cannot issue the licence unless you already hold a KDB permit. The licence fees in the table above come from the Fifth Schedule of the Regulations, and regulation 10 lets a county waive part or all of the fee.
- Primary producer registration (county). Farmers who produce milk for sale register once with their county department, free of charge. A farmer who only sells to a neighbour for home use does not need to register. A cooperative or aggregator can submit its members’ list for registration on their behalf.
The county dairy licence is separate from the general single business permit most counties also charge, so budget for both.
What KDB Checks Before It Issues a Permit
Regulation 15 says the Board must be satisfied that everyone handling dairy produce on the premises has a valid medical certificate, and that the premises are in good repair, clean, properly drained and fitted with adequate equipment. KDB’s Permit Requirements page adds these areas:
- Premises: properly located, designed, ventilated and lit, and protected from contamination.
- Equipment: food-grade, corrosion-resistant contact surfaces that are easy to clean and sanitise.
- Personnel: clean, properly dressed and medically certified milk handlers.
- Records: quality records kept and updated.
- Waste: effluent and solid waste handled according to the regulations.
- Utilities: enough potable water and other utilities for the operation.
- Management: a qualified supervisor or manager in charge.
- Operations: recommended processing schedules followed, for example pasteurisation temperatures and times.
- Pest control: protection against flies, rodents, birds and other vermin.
How to Apply: Milk Bars, Dispensers, Cottage Industries and Mini Dairies
KDB’s Licensing Procedures page sets out the same six steps for small operators:
- Find a suitable premises for the business.
- Contact the nearest KDB office for a preliminary inspection. Fix anything the officer flags before you go further. Our list of Kenya Dairy Board branches and contacts has every regional office.
- Apply online through the Get a Permit link on the KDB website and pay any application fee shown (KDB lists it as free for local categories).
- Pass the inspection. If the premises pass, pay the licence fee for your category.
- Receive the permit, issued for one year. Display it where customers and inspectors can see it.
- Start operating and pay monthly cess and levy where they apply.
Before you apply, sort out the basics most applications ask for: check and reserve a business name, a KRA PIN for a company if you are registering a company, and your county permit. If you will sell to businesses, look at registering for eTIMS as well.
How to Apply: New Processing Plants and Cooling Plants
Bigger projects start before construction. KDB’s procedure for new processors and coolers is:
- Get the legal approvals you need (for example NEMA and county approvals) before building or installing equipment.
- Apply to KDB for an Assurance Letter, submitting copies of the plant design and those approvals. The letter sets the framework for licensing once the project is finished.
- Use KDB compliance officers for advice while construction and equipment layout go on.
- On completion, ask the nearest KDB office for a preliminary inspection, and fix any gaps.
- Apply online, pass the final inspection, pay the fee and receive a one-year permit.
Renewing Your Permit
Permits last 12 months. Regulation 17 asks holders to apply for renewal three months before expiry, and KDB’s procedures page asks existing plants to book the pre-renewal inspection at least two months before the current permit ends. Renewal follows the same inspection rules as a new permit, so keep medical certificates and records current all year.
Levies and Cess After You Open
| Charge | Who pays | Rate in the Regulations | When |
|---|---|---|---|
| Consumer safety levy (KDB) | Dairy business operators processing or importing milk | 40 cents per kg of milk processed, or 1% of the cost of milk processed or imported, whichever is higher | Monthly, within 10 days after month end; before entry for imports |
| County cess | Charged on the farm gate price paid to primary producers | Up to 0.5% of the farm gate price | Remitted to the county within 20 days after month end |
Late levy is expensive. Regulation 26 adds a 25% penalty for the first month or part month the levy stays unpaid, then 12% compound interest for each further month.
Offences and Penalties
- Not displaying the permit conspicuously on the premises: fine of up to KSh 10,000, jail or both.
- Pretending to hold a permit, for example with a false sign: fine of up to KSh 10,000.
- Selling milk without registering as a primary producer when you should: fine of up to KSh 2,000, one month in jail or both.
- Failing to remit county cess: fine of up to KSh 10,000, 12 months in jail or both.
- Any other breach without its own penalty: fine of up to KSh 10,000, a year in jail or both.
KDB can also refuse, suspend (for up to three months) or cancel a permit, for example when premises fail inspection, fees are unpaid, or farmers have not been paid for milk delivered.
Cost Example: Opening a Milk Bar
Using only the official fees above, a new milk bar pays nothing to apply to KDB and nothing for the KDB permit, then KSh 2,500 for the dairy licence, plus the county’s single business permit. The rest of the budget goes on the premises, cooler and dispensing equipment, and medical certificates for staff. A milk ATM (dairy produce dispenser) pays the same KSh 2,500 licence fee. A small yoghurt or mala unit under 500 kg a day falls under cottage industry at KSh 4,000.
Farmers supplying inputs to the same chain can compare suppliers in our lists of fertiliser companies in Kenya and Kenya Seed Company branches. If you are hiring staff for a dairy outlet, post or find roles on JobinKenya.
Contact the Kenya Dairy Board
- Head office: New Loresho Estate, Upper Kabete, off Waiyaki Way, Nairobi (P.O. Box 30406-00100).
- Phone: (020) 3569377 / 341302, 0722 573 432, 0733 521 438.
- Email: info@kdb.go.ke
Frequently Asked Questions
How much is a Kenya Dairy Board permit for a milk bar?
KDB lists the milk bar regulatory permit and its application as free. The milk bar licence fee is KSh 2,500, and your county may also charge a single business permit.
Do I need a KDB permit for a milk ATM?
Yes. A milk ATM falls under the dairy produce dispenser category. The permit is free and the licence fee is KSh 2,500.
How long is a KDB permit valid?
Twelve months from the date of issue. Apply to renew about three months before it expires.
How much does a processor pay?
A KSh 25,000 annual permit below 20,000 litres a day, or KSh 50,000 above that, plus a KSh 25,000 processor licence.
Do dairy farmers need a licence?
Farmers who sell milk register once with their county as primary producers, free of charge. Selling only to a neighbour for home use is exempt.
Can I apply for a KDB permit online?
Yes. KDB says all categories are applied for online, after a preliminary inspection by the nearest KDB office.
Fees and rules checked on October 25, 2026 against the Kenya Dairy Board’s Permit Categories and Fees, Permit Requirements and Licensing Procedures pages on kdb.go.ke, and the Dairy Industry (Registration, Licensing, Cess and Levy) Regulations, 2021 (Legal Notice 16 of 2021). County business licence fees can be waived or varied by each county, so confirm with your county dairy office before you pay.
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