By James Munyeki
Farmers in Nyandarua and Laikipia have rejected Government’s proposal to allocate them 42 per cent of shares upon privatisation of New Kenya Co-operative Creameries ( KCC).
In a meeting attended by Minister for Co-operative Development and Marketing Joseph Nyagah, farmers said they will lose control over the company, which they have always owned under Government trust.
“We must get 51 per cent and above to enable us have a say in the company,” said Nderitu Muchemi, a farmers’ association chairman.
Mr Nyagah had on behalf of the Government proposed that the 42 per cent of shares would be sold to farmers who sell milk to KCC and others who sell elsewhere as a way of attracting them.
He added that 20 per cent of the shares would go to the Government because it will be facilitating trainings and also make intervention during milk glut season.
According to the proposal, milk and milk products consumers will get 34 per cent of shares while four per cent will go to KCC employees.
The farmers, however, upheld the decision to have Government own 20 per cent of the shares, saying its presence will boost company image, trust among farmers and their partners and enhance security of their investment.
“We also don’t have any problem with the employees owning four per cent of the shares since they are our partners in business,” said chairman Nderitu.
Nderitu proposed that shares should be sold to co-operative societies, groups and individuals, adding that even farmers without money should be given forms to fill, then their shares purchase fees will be deducted from their milk proceeds.
To avoid selling shares to brief case farmers, Nderitu proposed that KCC farmers’ milk delivery register should be used when selling shares.
