Milk processor gets Sh150m new equipment

The government has procured equipment worth Sh150 million to modernise New KCC, Kiganjo Factory in Nyeri town.

New KCC managing director Nixon Sigey said the equipment boost was part of the modernisation programme started three years ago targeting all milk processing factories in Kenya.

The Eldoret factory was the first to benefit, Dandora will follow next week and Nyahururu factory by December, he said.

“We want to be able to process at least one million litres per day and we challenge farmers to increase their supply because we have the market,” he said.

The government is to spend Sh1 billion in the programme. The MD spoke on Saturday when he presented the milk processing machines to the factory.

The modernisation programme, Sigey said, has come with a lot of benefits because the farmers’ payout has increased from Sh2.5 billion to Sh4.5 billion per year.

The MD said that by the time the modernisation process is complete, the farmers’ payout will be around Sh6 billion.

The only challenge that ought to be dealt with is managing the cost of production which will enable the sector remain competitive within the country and the region so farmers can be assured of better returns, he said.

Sigey said New KCC has developed a robust extension programme that will enable farmers to improve their productivity at the farm.

“We are looking at the average production and mostly it is eight litres and we want to push it to 15 to 20 per cow per day. That way, we are able to reduce the cost of production,” he said.

Sigey said efficiency in the entire value chain is the only way benefits can be passed to the farmer.

He called on the youth to engage in dairy farming so that they can benefit from the programme.

About two million households in the country directly benefit from the dairy sector, Sigey said.

New KCC chairman Gathigi Kahiu who was also present called on the youth to desist from betting and instead venture into the lucrative agribusiness. 

(edited by O. Owino)