Dairy farmers across Kenya’s North Rift and South Rift regions are demanding more than Ksh 300 million in unpaid arrears for milk supplied to the New Kenya Cooperative Creameries (New KCC) over the past four months, plunging the sector into a worsening financial crisis.
Farmers report that delayed payments have disrupted their livelihoods, reduced milk production, and forced many to consider shifting to alternative agricultural activities.
The frustration stands in sharp contrast to recent optimistic statements by President William Ruto regarding the strength of Kenya’s dairy industry.
Cooperatives Cabinet Secretary Wycliffe Oparanya confirmed the delays, saying the government is working to clear the outstanding payments.
Speaking in Naivasha during the 4th Annual Cooperative and SME Conference, Oparanya said plans are underway to privatize New KCC while simultaneously settling its debts.
According to Oparanya, New KCC is currently owed Ksh 183 million by various government agencies. A report tabled before the National Assembly Committee on Trade, Industry and Cooperatives indicated that the Ministry of Defence and the Administration Police Service are the largest debtors, owing Ksh 49.49 million and Ksh 32.38 million respectively.
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The government had announced a major revamping and modernization programme for the New KCC to protect farmers from exploitative middlemen. This includes upgrading processing factories across the country to restore the company’s former vibrancy.
President Ruto had said the government had allocated Ksh 5 billion to establish new New KCC branches at the grassroots level nationwide.
He had also revealed that New KCC received a Ksh 37 billion support package from India, part of which is earmarked for modernisation of the dairy processor.
Additionally, in the 2023/2024 financial year, the government set aside Ksh 700 million to upgrade New KCC processing units.
By Obegi Malack
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