By Vostine Ratemo
Farmers have opposed the move by the state to privatise milk processor New Kenya Co- Operative Creameries (New KCC), warning that the plans will be a burden to them.
In the year 2019, the government suspended plans to privatise the New KCC, being apprehensive about leaving the key dairy sector completely in private hands.
The farmers now want the firm`s ownership to be handed back to farmers before any talks on privatisation can occur.
In former President Mwai Kibaki’s regime, the government settled an outstanding debt of more than Sh547 million owed to the firm with a promise to return it to the farmers once it was back on its feet.
In 2015, the state allocated the company a sum of Sh400 million to boost it in setting up instant powder milk plant in Eldoret.
Kenya Farmers Association (KFA) director Kipkorir Menjo said that the milk processor must return to farmers, who are the rightful owners.
“The government made a promise to revive the company and then hand it back to farmers, but this has not happened. Right now, we are shocked to hear about the privatisation plans,” Menjo said.
Mr Henry Otyula, a dairy farmer from Bungoma, said majority of farmers are not even aware about the ownership row of the firm.
“Up to now, we don`t know who truly owns the company. Many farmers who are supposed to be key stakeholders have not been involved in the process,” he added.
The past governments have pumped billions of shillings into the company in a bid to turn around its fortunes. Recent regime Jubilee government allocated billions for modernisation of the firm equipment, and replacement of old machines with the new ones for more efficiency.
