KCC milk suppliers to earn bonus beginning next year

Dairy farmers to benefit from bonus scheme like tea counterparts

In Summary

•The scheme is aimed at rewarding the farmers supplying milk to KCC while at the same time ensuring there is an enhanced production in the government owned establishment


Dairy farmers countrywide will soon enjoy a bonus from milk deliveries made to New Kenya Cooperative Creameries (KCC), managing director Nixon has Sigei announced.

He said the new bonus scheme to be launched next year aims at rewarding the farmers while at the same time enhancing production at the state owned establishment.

Speaking at Sotik KCC plant, Sigei said the bonus scheme will act as an incentive to help KCC boost production to meet demand.


The company, he said, has also piloted a quality based payment system to rewards farmers on the quality of their milk.

He said the additional payment will only be effective upon completion of the modernisation of all KCC factories countrywide.

Sigei said the milk processor is currently installing modern processing technologies in its upgrading in Sotik, Eldoret, Dandora, Nyahururu, Kiganjo and Kitale complete.

He said KCC has enhanced capacity and efficiency to absorb more milk deliveries and expects farmer's payment to go up from the annual Sh4.5 billion to Sh6 billion.

“We have said even if we shall start with Sh1 that is the way to go…we want to encourage our customers who are the dairy farmers to develop a positive attitude towards KCC hence produce more milk,” Sigei said.

He said the Coronavirus  outbreak in March pushed down milk production by 50 percent.


Sigei said New KCC is using its strategic milk powder reserve to stabilise customer prices in the country.

He said the processor  has so far released 1,000 metric tonnes to other private mill plants to help stabilise supply of milk.



New KCC managing director Nixon Sigey.
KCC MD New KCC managing director Nixon Sigey.
Image: Felix Kipkemoi