Regulation in the dairy industry targets the small scale producers and milk traders with the aim of ensuring that they meet requirements for milk quality control. The paper presents results from a study carried out in Kikuyu division, Central province of Kenya that assessed the challenges and the benefits accrued to on farm clean milk production and the level to which farmers were aware of regulations governing the dairy sector. The farmers were producers of milk only and possessed no milk bar licenses, public health licenses, business producer licenses nor single business licenses. They had little knowledge of laws regulating dairying with 40% identifying Kenya Dairy Board (KDB)as law enforces, 20% as law enforcers and educators while 40% had no knowledge of their mandate. Farmers adopt hygienic milk production and handling if the practices are cost effective and simple to understand. Those who carried out milk production, disease control and facility hygiene were 55% while 21.1% tested for mastitis and another 22.9% able to keep the zero grazing units clean. Information on milk quality control was acquired from extension workers from the Ministry of Livestock development by 52% of the producers, 36% from the veterinary department of the same ministry and 12% through seminars. There is need to develop pro-poor interventions, strengthen infrastructure, farmer groups and security so as to maximize the production of quality and quantity of milk.