Kenya’s dairy giant New KCC injects US$ 9.9m in modernisation plan

KENYA – The New Kenya Co-operative Creameries (New KCC), a leading dairy processor in Kenya, has invested US$ 9.9 million in its modernisation programme to improve production capacity.

According to Nixon Sigey, the company’s Managing Director, the modernisation plan has seen the firm procure and install new equipment across its major processing factories countrywide, reports The Standard.

Speaking during a factory visit at its Kitale based plant, Mr Sigey said the modernisation plan has helped the company to diversify its products and increase its milk sourcing capacity.

Among the processing plants that the firm has invested in under the modernisation plan include Eldoret, Thika and Nyahururu based factories.

The company commenced its modernisation programme at Eldoret Factory with the commissioning of an ultra-modern UHT processing unit to boost the production of UHT and other long life products using state-of-the-art equipment, for both the local and export markets.

Mr Sigey added that the modernisation has enabled the company to improve its market share from 23 per cent to 32 per cent and has supported growth in its revenue, which are up to US$40 million.

“The stability in the company after we kicked off the modernisation plan has aided us to improve our intake by 40 per cent and attracted more milk. Farmers’ earning has increased from Sh2.5 billion (US$25 million) to Sh5 billion (US$ 50 million),” he said.

Sigey said that the firm’s annual turnover had increased to US$100 million and the company had put in place robust extension services to manage seasonality of the milk supply.

In its Nairobi Factory, New KCC has installed new equipment in a move to more than double its processing capacities for its fermented milk products category (Mala & Yoghurt), whose demand in the market has continued to grow.

The firm has also expanded and modernised the butter and fresh milk categories with an overall improvement of production efficiency at the facility.

This includes high speed fillers, slim carton foaming technology, utilisation of Poly Ethylene Terephthalate technology in its packaging line for the long life milk.

The firm said the investments marks its continued commitment in servicing the dairy industry and ensure that its business remains competitive ahead of its rivals in the local and export market.

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