This report describes and assesses a milk quality assurance innovation, the milk quality tracking and tracing system (MQT&T) and Quality-Based Milk Payment System (QBMPS) project. The project was piloted by Happy Cow Ltd (HC), a medium-scale processor in Nakuru, Kenya, and its milk suppliers. The objective of the pilot project was to offer a proof of concept to track and trace milk quality within a smallholder-dominated supply chain and to develop and implement a payment system based on the quality of raw milk delivered. The assessment adapted the PPPLab Scaling Scan as the main framework to enumerate the various project investments, interventions and achievements and to reflect on the success factors, shortcomings and preconditions required for QBMPS scalability.