Despite the growth in dairy farming over the years, there is a lot of imbalance in milk production experienced in different areas based on the approach from different farmers. The farmer’s fails to understand the connection between dairy productivity and farming practices. The study sought to establish factors affecting production of dairy products in Kenya. The targeted population was 6,1018 dairy farmers members of co-operative society in Kiambu County, stratified random sampling was used in selection of sample the Study sampled 383 farmers from co-operative societies situated within eight constituencies in Kiambu County. The study collected primary data using structured questionnaires. Processing and analyzing of the survey data was carried using SPSS version 21. Data presentation was in form of tables to help interpret findings and generate conclusions. The study established that member’s payment, dairy production resources and dairy production systems affect the production of dairy product. The study recommended that a dairy farmer who is the primary producers in the supply chain should also be given the opportunity to add value to their product by adopting methods of production that satisfy the demands of processors and customers, dairy production system should Lean to culture of continuous improvement, dairy farmers should implement new technologies and practices that are consistent with their goals, the policy with strong believe that farmers will gain and benefit like pay with performance and quality of daily product, establish the standards to determine farmers pay Protect farmers from negative consequences of dairy product and periodically review of the payment terms that does not create a culture of mistrust. The County Government needs to improve in extension services, access to affordable finance and facilitate investment of the supply chain in dairy farming.Dissertation submitted in partial fulfillment of the requirements for the award of master of science in commerce (finance and accounting) degree in the school of business and public management at Kca university September, 2016