The dairy industry in Kenya: production capabilities, investments, innovations and trends

KENYA – The dairy industry in Kenya remains one of the most critical sectors of the economy. With rising innovations, investments and sophistication of the sector, the last few years has seen the emergence of new threats even as there is growing interest by local and international investors in the sector. We review some of the latest trends in the sector since we ran a similar report in this magazine in 2013. The dairy industry in Kenya is one of the most lucrative agricultural and manufacturing activities, with great potential…

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New KCC lays off 280 workers at Nyahururu plant to pave way for facility upgrade

KENYA – The New Kenya Co-operative Creameries (KCC), state-owned dairy processor has laid off 280 casual workers at its factory in Nyahururu, Laikipia County in a restructuring move. In a letter dated February 29, Managing Director Simon Wanjangi said the contracts had been terminated with immediate effect “as there was not much production going on at the factory.” “This is to inform you that due to the temporary stoppage of production operations in the factory, to give room for factory modernisation, the management has decided to terminate your services with…

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New KCC breaks ground for construction of US$2.49m milk cooling plant

KENYA – The New Kenya Co-operative Creameries (KCC) has commenced the construction of the ksh.250m (US$2.49m) milk cooling plant in Nyambene-Meru County, Central Kenya. The facility, whose construction is set to be completed in October this year will have a holding capacity of 100,000 litres. Unlike other New KCC cooling facilities, the Nyambene plant will, in addition to bulking and chilling, pasteurize the raw milk before it is transported to processing facilities. The plant will serve dairy farmers from five of the nine sub-counties in Meru County that include Tigania…

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Kenyan state-owned dairy processor expands into goat and camel milk production

KENYA – The New Kenya Cooperative Creameries (KCC), state-owned Dairy processor has announced plans to open a goat and camel milk production line at its Nanyuki processing plant, Central Kenya following high demand of the commodities in the country. Goat and camel milk are highly sought by Kenyans who are keen on diet due to high nutritional value. Currently, a litre of goat milk retails at an average of Sh200 buoyed by scarcity as most farmers are not rearing dairy goats. The same quantity of cow milk is selling at…

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Kenyan government sets new reforms to govern the agriculture sector

KENYA – Kenyan tea farmers are set to reap big following President Uhuru Kenyatta’s directive targeting only 20 percent of local tea produce to be sold at the Mombasa Tea Auction while the remaining 80% sold directly to prospective buyers to improve farmers earnings. In addition to that, the President directed radical restructuring measures of Kenya Tea Development Agency (KTDA) and its subsidiaries to have their own respective management and regularly publish results of their sales. The Agriculture ministry is also expected to explore the option of KTDA paying farmers…

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New KCC taps into the growing healthy lifestyle market with new product

KENYA – The New Kenya Cooperative Creameries (KCC), one of the leading dairy processors in Kenya has officially launched a low lactose milk product in collaboration with the Finnish firm Valio Dairy, an addition to its Gold Crown brand targeting lactose intolerant consumers. The new milk aimed at promoting a healthy lifestyle comes in an orange pack, featuring the companies prominent crown logo, is available in a 250 ml, 500 ml and one litre packs, and will be sold in all outlets and retail at Sh150 (US$1.46) per litre. The…

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New Kenya Cooperative Creameries to launch lactose free milk

KENYA – The New Kenya Cooperative Creameries (KCC), one of the leading dairy processors in Kenya is launching a low lactose milk product, an addition to its Gold Crown brand targeting lactose intolerant consumers. The new milk aimed at promoting a healthy lifestyle comes in an orange pack, featuring its prominent crown logo, will enable lactose intolerant consumers to easily digest the milk sugar in which causes stomach discomfort, bloating and stomach upsets to them. The launch comes in wake of fresh push for privatization of the dairy. Dairy investors…

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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…

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Kenyan government halts New KCC privatisation plans to focus on capacity building

KENYA – The Kenyan government has suspended its plans to privatise the state-owned dairy producer, New Kenya Co-operative Creameries (New KCC), saying that it will now focus on capacity building of the dairy firm. According to a Business Daily report, Peter Munya, Trade and Industry Cabinet Secretary said that one of the major players in the country’s dairy sector, New KCC is a critical state investment that plays a critical role in controlling the market prices. Despite being in the privatisation list for more than a decade now, Mr Munya…

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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…

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