The New Kenya Cooperative Creameries (KCC) might soon be run by a private entity as part of the government’s effort to address the company’s financial challenges.
President William Ruto, on Saturday, January 3, 2026, lamented that despite the government’s huge investment in the company for the last few years, it has struggled to remain afloat.
“KCC has many problems. For the last three years, I have released KSh 6 billion to KCC, but it has not helped ease the situation,” Ruto said during an engagement party of Moiben Member of Parliament Prof Phylis Bartoo at Kimumu estate on the outskirts of Eldoret city.
Some of the challenges KCC has been facing are the failure to pay farmers for milk supplied.
How much will the government give New KCC to pay farmers?
President Ruto, however, said the government will release a further Ksh 2 billion that will be used to clear farmers’ debt.
The money will be released next week.
However, Ruto said this will be the last time the government will be coming to the aid of the struggling KCC.
He noted that should the situation remain the same, the government will be forced to go the same route as was the case with the sugar industry – privatise the company.
“Next week, I have directed the release of Ksh 2 billion to New KCC, but that will be the last money. We won’t release anything more after that,” the president said.
“What we did with the sugar factories, we went and reformed them. I have given firm instructions to ensure we also carry out reforms in KCC and ensure it is owned by the farmers. That Eldoret factory should be owned by Eldoret farmers,” he added.
Ruto noted that the government will also allocate funds to support the reform agenda.
Local leaders have welcomed the latest announcement by President Ruto.
Led by Uasin Gishu governor Jonathan Bii Chelilim, they termed the move as timely.
“We sincerely thank President William Ruto for his steadfast commitment to the welfare of our dairy farmers. His timely intervention, including the release of KSh 2 billion this week for KCC payments, will provide vital support to our dairy farmers,” Chelilim said.
“We also welcome the strategic direction towards reforming the Kenya Cooperative Creameries, ensuring that farmers take ownership and participate fully,” he added.
