KENYA –  The Government of Kenya has invested US$14 million (Kes 2 billion) towards the modernization of factories managed by state-owned dairy processing company, the New Kenya Cooperative Creameries (KCC).

According to the Managing Director (MD), Nixon Sigei, the multi-billion modernization programme has seen the value of diry processed by the company increase from Sh 2.5 billion to Sh 4.5 billion, which is a big boost to farmers.

He added that the modernization projects will go a long way in offering quality services to dairy farmers, who have been suffering due to a lack of markets for their produce.

“The money has been spent on the installation of state-of-the-art equipment in our New KCC factories across the country to enable the farmers to earn better returns and at the same time increase demand for our products,” said Sigei.

The process of the modernization project initiated by the national government is ongoing to ensure all the factories are covered for the benefit of the dairy farmers.

The chairman of the National Assembly’s Parliamentary Committee on Trade, Industry, and Cooperatives, James Gakuya expressed satisfaction with how the New KCC top leadership has prudently utilised the allocated funds towards the modernization of all its factories.

“We can see the value for money in the installation of new equipment; the work that has already been done on some of the New KCC factories that we have toured in the North Rift region is impressive,” said Gakuya.

He challenged the management to hasten the installation of modern equipment in the remaining factories now that the government has already funded the requisite budget for the modernization programme.

Gakuya assured that the government was committed to addressing any of the challenges bedevilling small-scale dairy farmers to provide solutions so that they reap maximum profit from the sector.

Earlier this year, Deputy President, Rigathi Gachagua, announced that the government had started work towards reforming the country’s dairy sub-sector.

In his highlights, he revealed that this would be done through the modernisation of the New Kenya Cooperative Creameries (KCC) factories and the subsequent expansion of its market. 

“We are going to create a market for New KCC in government institutions. If there is a good market, the company will increase prices. Other private companies will also increase prices because of competition in the market,” he said.

He noted that the modernization would be part of the state’s efforts to transform the dairy industry and empower the company so it can process milk for local consumption and foreign markets.

“The government aims to double the processed milk to over three million litres per day for higher returns to farmers.”

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