New KCC wants farmers paid Sh500 million debt

The Government has been asked to pay Sh500 million to dairy farmers who had shares in the Kenya Co-operative Creameries when it went under in the 1990s.

New Kenya Co-operative Creameries (New KCC) Managing Director Nixon Sigey said payment of the debt will help the processor broker a smooth working relationship with milk producers and enable it to compete favourably.

“The money for the compensation was allocated in the budget of the current financial year and it needs to be immediately channeled to the farmers to help them revive their investments and produce more milk for the growth of the industry,” said Mr Sigey.

Sigey, who met the parliamentary committee on agriculture that is on a two-day tour in the North Rift at New KCC Eldoret, said the delayed payment had angered the farmers, making most of them quit dairy farming.

He further urged the committee to consider the farmers’ request to privatise the milk processor, adding that working closely with stakeholders is key in developing the dairy sector.

MORE MILK

“The current valuation of the company is upward of Sh8 billion and the farmers have been requesting for an 85 per cent shareholding deal. It is important you engage them further.

“There is also need to increase funds for the Strategic Food Reserve (SFR) to enable us purchase surplus milk and produce powdered milk,” Sigey said.

The vice chairperson of the committee Kareke Mbiuki praised Sigey over the revival of the milk processor and concurred that increasing funds for a SFR will facilitate purchase of more milk.

“We do not want a scenario where we have a milk glut forcing us to dispose the commodity like in 2009. We are determined to put milk and maize production at par and increase the allocation for the reserve from the current Sh300 million to over Sh1 billion,’ said Mr Mbiuki.

He however, questioned why only Sh200 million out of the Sh300 million allocated for a SFR through the Kenya Dairy Board (KDB) had been used for the purpose and called on Agriculture Principal Secretary Andrew Toimur to explain where the missing Sh100 million is.

Kwanza MP Ferdinand Wanyonyi challenged New KCC to improve its marketing strategy to expand its market base and help more farmers.

DOING WELL

“The company is doing well in terms of gains but it needs to enhance marketing approaches to compete excellently in the competitive industry where foreign countries are targeting our lucrative market,” said Mr Wanyonyi.

His Mt Elgon counterpart John Serut was also impressed by the revival of New KCC.

Busia County Woman Representative Florence Mutua on the other hand said she would spearhead the drafting of a bill to ensure that all public institutions buy locally produced commodities to encourage national development.

“I will draft a bill where Kenyans and especially institutions that rely on taxpayers’ money buy Kenya and build Kenya first. We need to support KCC and other organisations to develop by promoting our own,” she said.