East Africa

Kenyan dairy farmers cull proposal to privatise New KCC

NAIROBI-Farmers in Kenya have opposed the move by government to privatise milk processor New Kenya Co-operative Creameries [ New KCC ], arguing that the plans will be a burden to them, reports Sacco Review.

In the year 2019, the Kenyan government suspended plans to privatise the New KCC after realising the move would leave the dairy sector completely in private hands.

The Sacco Review now reports farmers in the country now want the firm`s ownership to be handed back to them before any talks on its privatisation can take place.

Former President Mwai Kibaki’s government settled an outstanding debt of more than Ksh 547 million owed to the firm with a promise to return it to the farmers once it was back on its feet.

In 2015, the state allocated the company a sum of Ksh 400mln to help it set up instant powder milk plant in Eldoret.

Kenya Farmers Association [KFA] director Kipkorir Menjo said that the milk processor must return to farmers, who are the rightful owners.

“The government made a promise to revive the company and then hand it back to farmers, but this has not happened. Right now, we are shocked to hear about the privatisation plans,” Menjo said.

Henry Otyula, a dairy farmer from Bungoma, said majority of farmers are not even aware of the ownership row of the firm.

“Up to now, we don`t know who truly owns the company. Many farmers who are supposed to be key stakeholders have not been involved in the process,” he added.

Source: Sacco Review


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