New KCC invests US$4M in expanding its Dandora dairy plant processing capacity

KENYA – The New Kenya Cooperative Creameries (KCC), one of the leading dairy processors in Kenya, has unveiled its new refurbished processing plant in Dandora Nairobi as it seeks to expand its processing capacity.

According to the company’s Managing Director Nickson Sigei, New KCC has invested US$4 million (Sh400 million) to raise the capacity of the Dandora plant and will enable the plant increase milk sourcing from farmers.

With an installed capacity of up to 300,000 litres per day, the refurbished plant will see the company initially doubled its processing capacity to 160,000 litres per day from 80,000 litres per day.

Speaking during the inauguration of the facility, President Uhuru Kenyatta said that the government will continue investing in the dairy sector while unveiling plans of opening in New KCC revamped plants in Nyahururu and Kiganjo.

New KCC has also installed a US$1.5 million (Sh150 million) ultra-modern equipment at the Kiganjo plant in Central Kenya that will also see the facility expand its processing capacity from 70,000 litres to 200,000 litres per day.

The president noted that the government seeks to ensure that the country meets its local dairy demand and is positioned to supply dairy and dairy products to the international market.

Sigei said New KCC has so far invested about US$12 million (Sh1.2 billion) in modernising its processing facility and is currently looking at the export market.

“We are targeting today’s consumer especially the young generation through improved products and those on the go. We have 33 different high-value products as opposed to just milk. We also produce ghee, butter and cream as well as yoghurt,” he said.

The milk processor, in which the government is a shareholder, has seen its turnover increased by US$40million (Sh4 billion) and Mr Sigei says it has raised above the tides into becoming one of the government’s biggest dividend earner.

He said farmers’ income increased from US$25million (Sh2.5 billion) to US$45 million (Sh4.5 billion) in the last two years and this was occasioned by the stability that has been brought by the modernisation of the factories. 

Mr Sigey notes that the company believes that by the completion of the modernisation programme, farmers will get pay out of US$60 million (Sh6 billion) as well as enable the company to remain competitive in the market both in the country and in the region.

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