New Kenya Co-operative Creameries Ltd (KCC) has received Sh400 million boost from the government to refurbish its Eldoret-based processing plant.
New KCC Managing Director Nixon Sigey said the funds will be used to purchase new machines and refurbish the plant to cope with increasing milk supply.
Speaking to The Standard on Saturday on phone, Sigey noted that the supply of raw milk has increased by at least 50 per cent in recent months owing to the processor's competitive pricing and timely pay.
"The tendering process for purchase of the equipment has already kicked off and we hope to have them installed before the end of the year," he said.
Sigey said extension and partnership programmes between the processor and county governments have also contributed to increase in supply base from 50,000 farmers in the last six months to 80,000 currently.
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"Our target is to have over 100,000 farmers on board. We are optimistic that we will hit this figure by the end of the year because our customer confidence levels have gone up," said Sigey.
According to Sigey, New KCC has also re-opened its export market and will now be supplying its finished products to Tanzania, Rwanda and Juba.
The processor increased its buying price for raw milk early this year by Sh6 per kilogramme to a record Sh41 to boost its intake.
At Sh41, New KCC is the highest paying processor for raw milk with rival firms offering between Sh35 and Sh38 per litre.
