The New Kenya Co-operative Creameries Limited (New KCC) will not be included in the list of 11 state corporations slated to be privatized.
According to Cooperatives and MSMEs Development Cabinet Secretary Simon Chelugui, there is a four-year Cabinet decree that invalidates the privatization of the New KCC.
During a meeting with the management in Naivasha, the CS assured them that the government is committed to strengthening the dairy processor because it plays a crucial role in supporting Kenyan farmers.
He mentioned that he will write to the National Treasury, citing the 2019 resolution and explaining why the previous cabinet decided not to include New KCC in the privatization programme.
“On March 29, 2019, the Cabinet resolved to remove the New KCC from the privatization programme. That resolution still stands, and it can only be reversed by a similar Cabinet resolution,” the CS affirmed.
Chelugui said that instead, the dairy processing firm is being strengthened to support more Kenyan farmers.
This announcement comes after the National Treasury and Economic Planning Ministry published a list of state-owned enterprises facing sale.
Last week, the National Treasury allocated Ksh500 million to NKCC to address the surplus milk issue caused by excessive rainfall experienced recently.
“We have already given out Ksh500 million and we have set the price of milk at Ksh45 while private firms are offering Ksh33,” the CS said.
By Amos Kerich
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