Dairy farmers urged to utilize 70% government funding through cooperatives

KENYA – Kenya’s dairy farmers have been encouraged to take advantage of affordable government credit facilities, offering up to 70% funding through cooperatives.

Co-operatives Cabinet Secretary (CS) Wycliffe Oparanya highlighted these opportunities while addressing farmers from various cooperatives at the New KCC factory in Dandora on October 15. 

He emphasized the crucial role dairy farming plays in empowering local communities and enhancing rural livelihoods.

Oparanya revealed that ongoing reforms at New KCC aim to boost milk productivity and enhance the dairy value chain. 

Our focus is on enhancing the dairy value chain through cooperatives. We have adopted the ‘pay farmers first’ principle, resulting in timely payments on the 1st of each month,” he said.

The CS urged farmers to unite and apply for funding through their cooperatives, with the government providing up to 70% of the required capital and the remaining 30% being covered by the farmers, either individually or as a group.

He emphasized that this funding would empower dairy farmers to increase milk production for both local consumption and export.

During the meeting, Oparanya directed New KCC’s acting Managing Director, Samuel Ichura, and his team to deliver a report on the corporation’s restructuring process within 90 days. 

We will not allocate further capital to the corporation until it completes its recovery process and proves its sustainability,” Oparanya stated.

He stressed the need for New KCC to restructure its human capital, as market competition demands greater productivity.

Principal Secretary for Cooperatives, Patrick Kilemi, reiterated the importance of these reforms, pointing out that despite having state-of-the-art equipment and facilities, New KCC has struggled to generate its own revenue.

 “We cannot keep doing the same thing over and over again and expect different results. The process to reform KCC is on course, and we must do it in the interest of the farmer, who is the main pillar of the institution’s existence,” Kilemi said.

Miriam Busiati, Chairperson of the Kajiado Dairy Women Cooperatives, expressed her satisfaction with the government’s reforms. 

“For the first time in a long while, we received our payments on time, on the 1st of the month. This has restored our confidence in New KCC,” she said. 

Busiati also called on the government to provide mobile coolers, explaining, “Mobile coolers will enable us to maintain milk production during the dry season when cows are relocated in search of pasture.”

The dairy industry, contributing KSh 4 billion in annual payouts, remains a vital component of the government’s economic agenda aimed at uplifting rural communities and ensuring the sector’s sustainability.

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