President Kenyatta’s reassurance on the planned privatisation of the New KCC has excited dairy farmers in the food-basket Rift Valley region.
The announcement came as farmers, discontented with meagre pay from their produce, were planning protests against a scheme to sideline them from the privatisation process of the milk processor. New KCC was revived in 2003.
“As farmers we are happy with the move and we ask the government to ensure that they involve farmers in any changes aimed at improving New KCC operations,” Kenya Farmers Association director Kipkorir Menjo.
Uhuru has said the company was property of the farmers and dismissed reports that it would be privatized soon without involving the farmers.
“I want to assure the dairy farmers across the country that there is no plan by the government to sell the New KCC as being claimed by some critics who are spreading around propaganda around,” the president said.
The Privatisation Commission last week visited the New KCC factories to assess assets and operations, causing fears among farmers they were being left out of the process. Commission chairman Henry Obwocha has, however, dismissed reports the process of selling off the company, valued at more than Sh9 billion, has started. Obwocha said they would discuss the privatisation process with all stakeholders, including the farmers who are demanding that the company’s ownership should revert them.
Uhuru, however, said the government had lined up a Sh500 million bailout package for the milk processor to enable smooth operation of the company.
“We have set aside Sh500 million to clear the debt which the New KCC is owed as part of the government’s plan to bring it back to form,” he said.
New KCC chief executive officer Nixon Sigei says the dairy firm has almost doubled its payments to farmers within a year to about Sh4.5 billion. Previously the payout was about Sh2.5 billion, he added.
Sigei says expansion and modernisation programmes have increased milk intake at the New KCC factories.