KENYA – Kenyan Deputy President, Rigathi Gachagua has announced the government’s release of KES 600 million (US$4.5 million) to compensate farmers supplying milk to the New Kenya Cooperative Creameries (KCC).

The move is set to ensure that farmers are compensated promptly for their efforts, reflecting the government’s commitment to improving their livelihoods.

“The farmers will receive their money because we are focused on improving their lives by ensuring better pay,” DP Gachagua stated.

He emphasized the government’s dedication to delivering services to the people, including setting aside funds to purchase maize from farmers across the North Rift and the entire country.

In addition to economic support for farmers, he highlighted the importance of collaboration between the state and the Church in advancing the development agenda.

“The State and the Church are one. The mission hospitals run by the Catholic Church are critical in providing complementary healthcare services to the people. We will work together to improve the people’s lives,” he affirmed.

This announcement follows the stepping down of New KCC Managing Director Nixon Sigey. During Sigey’s tenure, the company achieved significant milestones, including the initiation of phase three of modernizing and upgrading New KCC plants nationwide.

Moreover, the company embarked on a groundbreaking project, constructing a new milk processing plant in Narok County valued at KES 750 million  (US$5.16 million), aimed at enhancing milk productivity and increasing farmers’ income.

In November 2023, the government, led by Cooperative and Micro and Small Enterprises Cabinet Secretary Simon Chelugui, unveiled plans to establish a milk price-stabilizing fund to ensure a stable and prosperous dairy subsector.

The funds were set to be executed through New Kenya Cooperative Creameries (New KCC) which aimed to manage milk surpluses during high production periods, converting excess milk into dry milk powder for strategic reserves.

Cabinet secretary, Chelugui announced the government’s commitment to spend KES 3 billion (US$22.5 million) on stabilizing milk prices amid expectations of a market glut due to favourable weather conditions boosting production since August.

The government’s financial commitment and strategic investments in the dairy sector underscored its efforts to boost the agricultural economy and support farmers.

The recent funding allocation is expected to provide much-needed relief to milk producers and stimulate further growth in the sector.

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