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New KCC injects Sh1 billion in modernisation plan

By Osinde Obare | March 25th 2019

The New Kenya Cooperative Creameries has injected Sh1 billion in its modernisation programme to improve production capacity.

Managing Director Nixon Sigey said the money had been used to procure new equipment, which had been installed in some processing factories countrywide.

Speaking when he led board of directors in a tour of Kitale factory at the weekend, Mr Sigey said the modernisation plan had helped the company to diversify its products and attract more farmers.

Some of the New KCC factories that have received a face-lift and equipment installed include Eldoret, Thika and Nyahururu.

The modernisation, the MD said, had enabled the company to improve its market share from 23 per cent to 32 per cent while revenue shot up to Sh4 billion in the past three years.

He said the firm’s turnover had increased to Sh10 billion annually.

“The stability in the company after we kicked off the modernisation plan has aided us to improve our intake by 40 per cent and attracted more milk. Farmers’ earning has increased from Sh2.5 billion to Sh5 billion,” he said.

Sigey said the company had put in place robust extension services to manage seasonality of the milk supply.

Kenya National Federation of Farmers lauded the New KCC management for prompt payment to farmers for milk deliveries.

Federation Secretary General Tom Nyagechaga said the better services offered by the processor had attracted more farmers to engage in dairy farming.

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