New KCC get Sh0.7b to spiff up

Government has set aside Sh700 million to modernise various processing units of the New Kenya Cooperative Creameries (New KCC) in the 2023/24 financial year.

Cooperative and Micro and Small Enterprise Cabinet secretary Simon Chelugui said upgrading the company is meant to not only boost milk production in the country but also make the sector more competitive.

according to Chelugui, the Sh0.7 billion which was factored in the supplementary budget is part of Sh3.8 billion earmarked to finance the upgrading of the firm.

Modernisation

“We recently got approval from the Cabinet to complete the modernising the NKCC as part of ensuring locally produced milk is well managed. So far the Government has finished rehabilitating Dandora, Kitale and Kigannjo processing plants,” he said.

Other manufacturing units to be restructured include those in Runyenjes, Nyambene. Nyahururu, Ravine, Kabinag, Nandi, Narok and Miritini in Mombasa County.

Speaking during an interview in his office, Chelugui said part of the Sh700 million will be used to mop up expected increased milk due to the ongoing long rains.

“We expect farmers to produce a lot of milk owing to the ongoing long rains and thus if not well managed can lead to wastage if tough measures are not fast tracked. Part of the money will be expended to buy fresh milk and be converted into powder,” he added.

The CS said part of his moveto enhance the processing capacity of the country will see the government distribute 650 coolers through cooperative societies.

“We intend to ensure cooperative societies through aggregation are able to manage locally produced milk to reduce wastage,” he explained.

Last month, Trade CS Moses Kuria said that milk processor Midland Group that owns the Lato milk brand will invest in Kenyan milk factories that are currently struggling in a bid to revive them in what will see the Ugandan firm take the fight for control of the lucrative milk sector to the doorstep of some well-known local dairy brands.