KENYA – The Kenyan government has reiterated its commitment to clearing all debts owed to dairy farmers by New Kenya Cooperative Creameries (KCC), marking a shit with the timely payment of October 2024 dues.
For the first time, farmers received their payments on the 1st of the month, a move hailed by Cooperatives and MSME Development Cabinet Secretary Wycliffe Oparanya as a critical step in empowering local dairy producers.
Addressing a group of farmers at the New KCC factory in Dandora, Oparanya emphasized the vital role that dairy farming plays in supporting rural livelihoods and driving economic empowerment.
He highlighted ongoing reforms at New KCC aimed at enhancing the dairy value chain, improving productivity, and transforming the sector to better serve both local consumption and export markets.
“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 the month. This is a clear sign that our reforms are gaining momentum,” Oparanya stated.
The CS also revealed that New KCC is undergoing restructuring under the Bottom-Up Economic Transformation Agenda (BETA).
This includes a review of its human capital to align with market demands and increase competitiveness.
Oparanya affirmed that the government is monitoring the company’s performance and that no additional capital will be allocated until New KCC demonstrates the ability to sustain its operations independently.
Principal Secretary for Cooperatives, Patrick Kilemi, added that despite New KCC’s state-of-the-art equipment, the company continues to struggle with revenue generation.
He stressed the importance of restructuring the management and prioritizing farmer payments, warning against the current trend of management remunerating themselves first.
“The process to reform KCC is on course, and we must do it for the interest of the farmer who is the main pillar of the institution’s existence,” Kilemi emphasized.
Kajiado Dairy Women Cooperative Chairperson Miriam Busiati praised the timely payments, which she said had restored farmers’ confidence in New KCC.
She called for government support in providing mobile coolers to ensure continuous milk production, especially during dry seasons.
Oparanya encouraged farmers to take advantage of affordable credit facilities available through cooperatives, which allow them to acquire equipment needed to boost production.
These facilities offer up to 70% financing, while the remaining 30% is covered by farmers.
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