Kenyan government invests Shs2B in Modernising New KCC factories, boosting dairy industry and farmer income

By Rodgers Omondi

The Kenyan government has spent Kshs 2 billion towards the modernization of the New Kenya Cooperative Creameries (KCC) factories to revamp the brand countrywide.

The most notable factories being the Dandora Mega factory, and the re-launch of the Eldored New KCC factory recently.

Speaking at the Eldoret factory while hosting Kenya National Assembly’s Parliamentary Committee on Trade, Industry, and Cooperatives, New KCC Managing Director, Nixon Sigei, said that the modernization program aimed at increasing income for dairy farmers has expanded dairy production revenue from the Kshs 2.5 billion to Kshs 4.5 billion within the past two months.

While still addressing the 10-member committee, the MD emphasized that dairy farmers now have access to quality services because of the modernization projects. He also noted that in the past, farmers have been on the receiving end of poor economic empowerment due to a general lack of market to sell their farm produce.

The 2-day tour of the newly launched KCC establishment in Eldoret offered an eye-opener to the future of dairy farming within the country. Speaking at the conference, Sigei assured farmers and stakeholders that, “The money has been spent on the installation of state-of-the-art equipment in our New KCC factories across the country to enable the farmers to earn better returns and at the same time increase demand for our products.”

To ensure that all the initiative is a success, the national government is set to spearhead the roll-out of the program countrywide to ensure all eligible shareholders benefit from the initiative. Through its spokesperson, the government reiterated its commitment to leverage the small-scale dairy farmer from the chain of red tape, promising to continue providing modern solutions and addressing perennial challenges faced by the sector.

The committee chair, Mr. James Gakuya expressed his confidence in the way the New KCC has utilized the funds to improve most of its factories countrywide. “We can see the value for money in the installation of new equipment; the work that has already been done on some of the New KCC factories that we have toured in the North Rift region is impressive,” said Gakuya.

Further, the chair made a call to top management to hasten the modernization process for some of the remaining factories countrywide, noting that the installation of modern equipment such as coolers and milk processors should be at the top of the priority.