• Milk glut and the resultant depressed prices are a result of heavy rains across the country.
• Central Bank of Kenya governor Patrick Njoroge commended for reducing the base bank lending rate to 8.5 per cent.
Both the national and county governments should facilitate the conversion of milk into powder and introduce school feeding programmes to deal with the oversupply of the commodity.
The call came from management consultant Kithinji Kiragu at a news conference in Embu on Wednesday.
Kithinji said the milk glut and depressed prices were a result of heavy rains across the country.
He called on the government to deal with the oversupply by buying the milk and stocking it in powder form for use during droughts. It can also be used to feed school children.
“The national and county governments should be creative and facilitate the stocking of some of the milk in powder form and also ensure high consumption of the milk by introducing school feeding programmes,” Kiragu, who unsuccessfully vied for the Embu gubernatorial seat in 2017, said.
The county also expects a bumper maize harvest and the consultant asked the government to offer good prices as an incentive to farmers.
Kiragu commended Central Bank of Kenya governor Patrick Njoroge for reducing the base bank lending rate to 8.5 per cent from 9 per cent, saying that this will provide relief to borrowers.
The Nairobi-based consultant said Njoroge has set the right tune for economic recovery as commercial banks are expected to lower interest rates.
He welcomed the government's pledge to clear pending bills, noting that this will release more money in the economy.
Kiragu, however, cautioned against domestic over-borrowing.