State-owned New KCC aims to regain its position as the top milk processing company in Kenya as it upgrades its equipment at a cost of Sh1 billion.
The firm is undergoing a modernisation programme on its four major processing facilities that will increase its capacity and raise payout to farmers from Sh4.5 billion to Sh6 billion.
Managing Director Nixon Sigey said the upgrade would enable them buy more milk and cut wastage for farmers.
He was speaking during a ceremony to install modern state-of-the art equipment at New KCC Sotik factory, Bomet County. The old equipment was installed in 1982.
“We are on course with our modernisation journey that’s set to help all our stakeholders across the value chain reap benefits accrued from dairy farming,” said Mr Sigey.
The Sotik plant, upgraded at a cost of Sh200 million, will see more production of fresh, long life and fermented products.
It will now be able receive and process up to 100,000 litres of raw milk per day from the current 60,000 litres.
Sigey said the farmers from the area now have the potential to earn Sh1.5 billion a year from the current Sh850 million. The modernisation has been completed in Nyahururu and Eldoret plants while Dandora is ongoing.
“This programme is bearing fruit as we have been able to create an array of diversified products to meet the local and export market,” said the MD.