A section of farmers in the North Rift region has expressed opposition to alleged plans by the state to privatise New KCC.
The company was among those listed by the National Treasury as up for privatization in the government’s bid to ensure they remain profitable.
But even before the plan gains momentum, farmers insist New KCC is not up for sale.
In a media briefing in Eldoret City on Thursday, September 19, 2024, the farmers drawn from Uasin Gishu, Nandi and Elgeyo Marakwet insisted that the government has no authority over the company.
Who owns New KCC?
They argue that New KCC is owned by farmers and it was time the government handed it back to them.
“If they want to talk about privatization, they can think of other companies but for New KCC it’s a different story,” said Kenya Farmers Association (KFA) Uasin Gishu branch director Kipkorir Menjo.
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“All the government need to do is hand back KCC to the government as the government under former President the late Mwai Kibaki promised us farmers,” he added.
The farmers noted that the only share the government has in the company is the Ksh547 million that it injected for its revival in 2003.
They further argue that for the last decade, the government has been earning money from the company in the form of dividends and other business it does.
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“The best thing now is to return the company to farmers. If they claim they have shares, maybe only for the Ksh547 which are mere peanuts compared to the state of the company,” noted a former New KCC chairperson.
The farmers say New KCC is now valued at over Ksh7 billion.
How many New KCC factories are in Kenya?
New KCC is the oldest and largest dairy processor in East and Central Africa.
With eight major processing factories, thirteen milk cooling plants and numerous satellite coolers, the company is in the heart of Kenya’s dairy country, strategically located to ensure maximum access to quality raw milk from Kenya’s finest pastures.
It also boasts a comprehensive agribusiness platform that provides useful linkages between itself and the thousands of partnering dairy farmers, giving them access to essential services including AI, quality animal feeds, Agro Vet and financial products among others.
“We work closely with the farmers at the farm level to employ best practices in ensuring reliable and quality milk supplies, in addition to providing competitive pricing and ready market for their raw product,” reads part of the company’ description.
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