Co-operatives and MSMEs Development Cabinet Secretary, Wycliffe Oparanya (pictured) has hinted at a restructuring exercise at the New KCC to enhance productivity to align with modern market demand.
He directed the government-owned company’s management to give a report within 90 days on the restructuring process to have a productive institution. Addressing a section of dairy farmers from various cooperatives at the New KCC factory in Dandora, the CS also announced that farmers can now access state credit facilities of up to 70 per cent.
Dairy farming
In this new arrangement, the farmers will take care of the remaining 30 per cent. Oparanya said that dairy farming in the country is important in empowering local communities and enhancing rural livelihoods.
“As a ministry, we are urging farmers to take advantage of affordable state credit facilities, and apply for funding through their cooperatives of up to 70percent, and 30 percent to be catered by them as groups or individuals,” he said.
Reforms, the CS revealed, were on course at the New KCC in a bid to empower dairy farmers to increase milk productivity. He pointed out this will transform the dairy industry to process milk for local consumption and export. “Our focus is on enhancing the dairy value chain through Cooperatives. We have adopted the ‘pay farmers first’ principle, resulting in timely payments on the1st of the month, this is a clear sign that our reforms are gaining momentum,” he pointed out.
Speaking on KCC performance during a meeting with the management team led by its Acting Managing Director, Samuel Ichura, the CS said there will be no capital allocation from government to the corporation until the institution sorts out the recovery process and proves the sustainability of its operations in the next 90 days.
The CS said for the sector to achieve the revitalisation agenda for New KCC Kenya, it has to restructure human capital since the market competition cannot match with productivity. “The New KCC is a strategic Government corporation which we must guard its operations process to remain productive in such a highly competitive and fast evolving market.
