Cabinet Secretary Ministry of Co-operatives Wycliffe Oparanya has directed the management of new Kenya Co-Operative Creameries (KCC) to give a report within 90days on the restructuring process of the government corporation to have a vibrant and productive institution.
The CS alongside Principal Secretary for Cooperatives, Patrick Kilemi on Monday had a meeting with the New KCC managing team led by the Acting MD Samuel Ichura regarding the Company’s performance progress.
The team presented the revitalization agenda programme which must be restructured and manageable.
Oparanya said there will be no capital allocation from government to the corporation until government sort out the recovery process and prove sustainability of its operations in the next 90days.
The CS further said for the sector to achieve the revitalization agenda for New KCC Kenya, it has to restructure human capital since the market competition cannot match with productivity.
`New KCC is a strategic Government corporation which we must guard its operations process to remain productive in such a high competitive and fast evolving market. We have to adopt the principle of ‘pay farmers first,’ the CS said.
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PS Kilemi on his part noted government focus is on enhancing the dairy value chain through Cooperatives, which is a major contributor to the Country’s economy.
`New KCC is a key government corporation, and we must ensure its operations remain efficient in a competitive market. We’ve adopted the ‘pay farmers first’ principle, resulting in timely payments on the 1st of the month a clear sign that our reforms are gaining momentum, ‘ the PS said.
The cooperative sector leaders later toured the KCC Dandora depot and milk production unit which is the largest facility for the Company to access its operations.
The corporation milk processing unit provides 60% of the market products for the Company.
They also addressed a section of farmers from various dairy cooperatives at the depot and assured them of government commitment on the reforms to revitalize the new KCC to remain profitable and sustainable. For the record time farmers were paid on 1st of the month.
Dairy farming in Kenya plays a pivotal role in the government’s bottom-up economic agenda, focusing on empowering local communities and enhancing rural livelihoods.
The New KCC milk production serves over 2 million beneficiaries along the value chain. The milk industry is lucrative in the country and can produce about 9M dollars revenue as export.
KCC is a product of cooperatives with milk supply comprising of 85% cooperatives and groups 10% smallholder and 5% large scale farmers and at ksh.4 billion pay out annually.
By Obegi Malack
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