This study aimed at the isolation and identification of Klebsiella spp. from dairy product to establish their public health significance by determining their virulence factors, antibiotic resistance and extended-spectrum P-lactamase (ESBL). Klebsiella pneumoniae, Klebsiella oxytoca and Klebsiella rhinoscleromatis were identified in 25 (58%), 11 (26%) and 7 (16%) isolates, respectively. A high prevalence of Klebsiella isolates had virulence factors such as siderophore production (63%), serum resistance (32.5%) and hemolytic activity (58%). ESBL-producing Klebsiella spp. was detected in 35% of the isolates. Resistance to the antimicrobial agents tested was found to be much higher in the ESBL-producing Klebsiella spp. than in non-ESBL-producing isolates. All ESBL-producing Klebsiella spp. showed high-level resistance to cephalosporins and monobactams. The majority of the serum resistant, siderophore, hemolysin and ESBL producers were K. pneumoniae.